Manor Care Competition
Now Viewing Manor Care's competition in: Nursing Homes and Assisted Living (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How does the company market its facilities? - Nursing facilities market services to health insurers, hospitals, individual doctors in fields like surgery and gerontology that are likely to need long-term care for their patients, local agencies for the aging, social workers, and financial planners serving aged clients.
How does the company market to adults looking for care for elderly parents? - Many housing decisions for elderly parents are often made by adult children, who are mostly uninformed about the many choices available.
What non- and for-profit competitors serve the same markets? - In many markets, consumers have several choices for nursing care.
What types of advertising does the company use? - Advertising includes direct mailings; print advertisement in newspapers, magazines, and yellow pages; billboards; websites and electronic correspondence; and public events such as open houses, health fairs, and community outreach events.
Have local hospitals built nursing care facilities of their own? -
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 highly labor-intensive: annual revenue per worker is about $55,000.
Full Industry Overview For Nursing Homes and Assisted Living
Business Challenges
CRITICAL ISSUES
Heavy Dependence on Government Regulations - Many nursing facilities receive a majority of revenue from Medicare and Medicaid. Because of this dependence, nursing facilities are vulnerable to changing government rules and reimbursement rates. National concern over rising healthcare costs creates pressure to limit reimbursement rates, while highly publicized cases of patient abuse at nursing facilities causes calls for additional regulation.
Labor-Intensive Industry - Labor is the largest single cost of nursing facilities. Companies try to reduce this cost by using lower-paid aides instead of expensive skilled nurses and through greater efficiency of operations, although regulators require minimum staffing levels. The industry is operating with a shortage of nurses and aides that's anticipated to expand as the US population ages and demand for nursing care increases.
Industries Where Manor Care Competes
- Health Care
- Health Care Services
- Long-Term Care Facilities(primary)
- Home Health Care
- Medical Practice Management & Services
- Specialized Health Care Services
- Health Care Services
