Nursing Homes & Long-Term Care Facilities

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 labor-intensive: annual revenue per worker is about $58,000.