Skilled Healthcare Group - Competitors

Skilled Healthcare Group Competition

Now Viewing Skilled Healthcare Group's competition in: Nursing Homes and Assisted Living (primary)

Recent Developments

Nursing Home Expenditures will Continue Rising - US nursing home care expenditures will rise 5.2 percent in 2008 compared to 2007, according to the CMS. About 63 percent of payments will come from public sources such as Medicare and Medicaid, and about 26 percent will come from patients. Private health insurance companies will make about 7 percent of the payments, and about 4 percent will come from other private sources.

Better IT Infrastructure Needed - Advocates for increasing IT in healthcare have overlooked nursing homes, according to a researcher at the University of Missouri. Extensive IT deployment in nursing homes would enhance the exchange of patient information, allowing providers to coordinate and transfer work between settings as patients are relocated from one facility to another. The researcher also advocates creating a national infrastructure for healthcare providers that will enable the exchange of information between short- and long-term care facilities.

Use of e-Verify Increasing - An Arizona law requiring companies to use the federal government's e-Verify system to determine if employees are legally in the country went into effect in January 2008. Nursing homes and assisted living centers relying on immigrant labor may be impacted by the law, which penalizes companies that knowingly hire illegal immigrants. The House is debating a bill that would require all US businesses to use e-Verify by 2012.

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, because 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 less than $50,000.

Full Industry Overview For Nursing Homes and Assisted Living

Nursing Homes and Assisted Living Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures on nursing homes are forecast to grow at an annual compounded rate of 7.4 percent between 2007 and 2012.

Strong and Steady Consumer Spending Growth for Nursing Homes

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.