DUBLIN--(BUSINESS WIRE)--The "U.S. Skilled Nursing Facility Market Size, Share & Trends Analysis Report by Type of Facility (Freestanding, Hospital), Ownership (For-profit, Non-profit, Government), and Segment Forecasts, 2021-2028" report has been added to ResearchAndMarkets.com's offering.
The U.S. skilled nursing facility market size is expected to reach USD 213.7 billion by 2028, and is expected to expand at a CAGR of 2.80% from 2021 to 2028
The growing aging population with increasing care needs and rising prevalence of chronic diseases in the country will propel the need for skilled nursing facilities (SNFs). In addition, lower costs of SNF as compared to hospitals will drive the market. SNFs cover numerous aspects such as therapy, mental health services, special dietary needs, hygiene items, recreational activities, and housekeeping.
Residents at skilled nursing facilities may be at a higher risk of contracting COVID-19 infection. According to the CDC, in the early months of the pandemic, around 2.1 million people lived in residential care or nursing homes, representing fewer than 1% of the U.S. population.
The majority of these facilities were not allowed to accept new residents and did not have new revenue streams for the additional expenses associated with the virus, which had a negative impact on the skilled nursing facilities services sector.
Competition in the market is very high, with major participants being Brookdale Senior Living Solutions; Genesis HealthCare; and The Ensign Group, Inc. Typical barriers in the industry for new entrants include strict regulations and licensing hassles. Furthermore, a rise in the costs of utilities, food, real estate taxes, and insurance could negatively affect the market growth.
Strategic initiatives undertaken by various market players are also expected to help maintain its growth in the following years. For Instance, in August 2020, the company acquired Tempe Post-Acute and Desert Marigold Senior Living of Tempe located in Arizona.
U.S. Skilled Nursing Facility Market Report Highlights
- By type of facility, freestanding held the largest share in 2020 and is estimated to be the fastest-growing segment in the forecast period. This can be attributed to the lower cost of care in comparison with hospitals and increased Medicare payments
- Based on ownership, for-profit facilities dominated the market in 2020 due to the increased acquisition and delivery of high-quality care while ensuring financial viability
- Prominent players are strengthening their position in the industry through activities such as collaborations, partnerships, mergers, and accusations. For instance. in Feb 2021, Brookdale Senior Living was acquired by Omega Healthcare, a USD 510 million deal with Healthpeak properties
- Teleconsultation services provided by SNFs are considered safer compared to hospitals during the COVID-19 pandemic, which is expected to play a vital role to get the patient preference in the later phase of the pandemic
Market Dynamics
Market driver analysis
- Rising geriatric population
- Increasing prevalence of multiple chronic conditions
Market restraint analysis
- High cost of services
- Shortage of workforce
Penetration & Growth Prospect Mapping
Business Environment Analysis Tools
- PESTEL Analysis
- Porter's five forces analysis
Regulatory Framework & Reimbursement: U.S. Skilled Nursing Facilities Market, 2020
Qualitative Analysis: Impact of COVID-19 on Skilled Nursing Facilities
Companies Mentioned
- Genesis HealthCare
- Brookdale Senior Living Solutions
- The Ensign Group, Inc.
- National HealthCare Corporation
- Sunrise Senior Living, LLC
- Life Care Services
- HCR ManorCare
- Golden LivingCenters
- Life Care Centers of America
- SavaSeniorCare Administrative Services LLC
For more information about this report visit https://www.researchandmarkets.com/r/cuvjz0
