Nursing Homes & Long-Term Care Facilities Industry Overview

Excerpt from Nursing Homes & Long-Term Care Facilities Report

Companies in this industry provide long-term skilled nursing care and social services in residential facilities. Major US companies include Manor Care, Sunrise Senior Living, Kindred Healthcare, Golden Horizons (owned by GGNSC Holdings), and SunBridge Healthcare (subsidiary of Sun Healthcare Group).

Competitive Landscape

Demand for nursing care is linked to the demographics of the US population. The profitability of individual nursing facilities depends on efficient operations, as revenue per patient is largely controlled by the big government insurance programs, Medicare, and Medicaid. Large companies have some economies of scale in administration and purchasing, but small operators can compete effectively by offering better service. The industry is fragmented: the 50 largest companies account for about 20 percent of revenue.

Products, Operations & Technology

The industry includes skilled nursing facilities for recovery from acute or chronic medical conditions (more than 60 percent of revenues), mental health and substance abuse facilities (about 9 percent of revenues), and various types of independent living, community care, and assisted living arrangements.