Global Skilled Nursing Facility Market Size By Type (Freestanding, Hospital), By Ownership (For-Profit, Non-Profit), By Service (Intensive Rehabilitation Therapy, Low And Medium Rehabilitation), By Geographic Scope And Forecast

Skilled Nursing Facility Market Size And Forecast

Skilled Nursing Facility Market size was valued at USD 385.53 Billion in 2023 and is projected to reach USD 732.73 Billion by 2031, growing at a CAGR of 9.22% from 2024 to 2031.

• A Skilled Nursing Facility (SNF) is a healthcare facility that provides high-level medical care and rehabilitation services. A Skilled Nursing Facility is a licensed healthcare establishment that provides short-term or long-term medical care and rehabilitation services to individuals who need assistance with daily living activities and medical care.
• Typically, patients are admitted to SNFs after hospitalization due to illness, surgery, or injury that requires ongoing medical supervision and rehabilitation. Patients must have a physician’s referral and an individualized care plan.
• SNFs can be covered by various insurance plans, including Medicare, Medicaid, and private insurance. Medicare covers SNF care under specific conditions, generally after a qualifying hospital stay of at least three days.
• The length of stay in an SNF can vary from a few days to several months, depending on the patient’s medical needs and progress in rehabilitation.
• SNFs are regulated and licensed by state health departments and must comply with federal regulations if they participate in Medicare and Medicaid programs. They undergo regular inspections to ensure quality of care and adherence to standards.
• Staff includes registered nurses, licensed practical nurses, certified nursing assistants (CNAs), therapists, social workers, and support staff. SNFs maintain a high staff-to-patient ratio to provide adequate care and supervision.
• Equipped with medical and rehabilitation equipment such as hospital beds, therapy gyms, and specialized treatment rooms. Provide a homelike environment with dining areas, recreation facilities, and social activities for residents.
• Quality of care in SNFs is monitored through patient outcomes, satisfaction surveys, and adherence to care standards. Facilities strive to maintain high levels of patient care and satisfaction through continuous improvement programs and staff training.
• A Skilled Nursing Facility is a crucial component of the healthcare system, offering specialized medical care and rehabilitation services to patients who require more intensive care than can be provided at home or in assisted living facilities.

Global Skilled Nursing Facility Market Dynamics

The key market dynamics that are shaping the global Skilled Nursing Facility Market include

Key Market Drivers

• Aging PopulationThe increasing number of elderly individuals, particularly the baby boomer generation, is a significant driver. As people age, they are more likely to require medical care and rehabilitation services provided by SNFs.

• Chronic DiseasesThe rising prevalence of chronic diseases such as diabetes, heart disease, and respiratory conditions necessitates long-term care and frequent medical attention, boosting the demand for skilled nursing facilities.
• Post-Acute Care NeedsAfter hospitalization for surgeries, injuries, or acute illnesses, patients often require short-term intensive rehabilitation and medical care that SNFs are equipped to provide.
• Government Programs and Reimbursement PoliciesGovernment programs like Medicare and Medicaid provide substantial funding and reimbursement for skilled nursing services, making them accessible to a larger population and driving the market growth.
• Technological AdvancementsInnovations in medical technology, telehealth, and electronic health records improve the quality of care in SNFs, enhancing their appeal and effectiveness in patient treatment.
• Increasing Healthcare ExpenditureRising healthcare spending by governments and private sectors leads to better facilities and infrastructure in SNFs, thereby attracting more patients.
• Preference for In-Home and Community-Based CareWhile there is a preference for in-home care, the complexity and intensity of care required by certain conditions can only be met by SNFs, maintaining their relevance in the healthcare continuum.
• Regulatory Support and StandardsStringent regulatory standards ensure high-quality care in SNFs, which can drive trust and reliance on these facilities for patient care.

Key Challenges

• Regulatory and Compliance IssuesSNFs are subject to stringent regulations and compliance requirements from federal, state, and local governments. Ensuring adherence to these standards can be complex and costly.
• Reimbursement Rates and Financial ConstraintsReimbursement rates from Medicare, Medicaid, and private insurance can be insufficient to cover the high costs of care, leading to financial strain on facilities.
• Workforce ShortagesThere is a significant shortage of skilled healthcare professionals, including nurses, therapists, and aides. Recruiting and retaining qualified staff is a persistent challenge.
• Rising Operational CostsThe costs of labor, medical supplies, insurance, and facility maintenance continue to rise, putting pressure on the profitability of SNFs.
• Quality of Care and Patient SafetyMaintaining high standards of care and ensuring patient safety is a critical concern. Poor quality of care can lead to penalties, lawsuits, and damage to reputation.
• Competition from Alternative Care ModelsIncreasing preference for in-home care, assisted living facilities, and other community-based care models poses competition to traditional SNFs.
• Changing Patient DemographicsThe complexity of care required by an aging population with multiple chronic conditions requires more specialized services and resources, challenging SNFs to adapt.
• Technological IntegrationImplementing and maintaining advanced medical technologies and electronic health records (EHRs) can be challenging and costly, particularly for smaller facilities.

Key Trends

• Telehealth and Telemedicine IntegrationIncreasing use of telehealth services for remote consultations, monitoring, and follow-up care, which enhances accessibility and efficiency in SNFs.
• Technological AdvancementsAdoption of advanced medical technologies, such as electronic health records (EHRs), remote monitoring devices, and automated medication dispensers, to improve care quality and operational efficiency.
• Person-Centered Care ModelsShift towards personalized and patient-centered care approaches, focusing on individual preferences, needs, and values to enhance the patient experience.
• Rehabilitation and Therapy ServicesEmphasis on comprehensive rehabilitation services, including physical, occupational, and speech therapy, to improve patient outcomes and reduce hospital readmissions.
• Infection Control and PreventionEnhanced infection control protocols and preventive measures, especially in response to the COVID-19 pandemic, to ensure the safety and well-being of residents.
• Workforce Development and TrainingIncreased focus on workforce training, education, and development programs to address the shortage of skilled healthcare professionals and improve care quality.
• Value-Based Care and Reimbursement ModelsTransition towards value-based care models that emphasize patient outcomes and cost-efficiency, with reimbursement tied to the quality of care provided.
• Aging Population and Demographic ChangesGrowing demand for SNF services driven by the aging population and increased prevalence of chronic conditions among the elderly.

Global Skilled Nursing Facility Market Regional Analysis

Here is a more detailed regional analysis of the global Skilled Nursing Facility Market

North America

• North America is significantly dominating the Skilled Nursing Facility Market and is expected to continue its growth throughout the forecast period, owing to several variables.
• North America has a significant aging population, especially the baby boomer generation, driving demand for skilled nursing care and long-term healthcare services.
• The region has a high prevalence of chronic conditions such as diabetes, cardiovascular diseases, and respiratory disorders, which require ongoing medical care and rehabilitation provided by SNFs.
• North America boasts a well-developed healthcare infrastructure with advanced medical technology, facilities, and skilled healthcare professionals, supporting the growth of the SNF market.
• Robust government programs like Medicare and Medicaid provide substantial funding and reimbursement for skilled nursing services, making them accessible to a larger population.
• North America has one of the highest healthcare expenditures per capita, allowing for better funding and resources for SNFs, leading to higher quality care and facilities.
• The presence of a stringent regulatory framework ensures high standards of care, encouraging trust and reliance on SNFs among patients and families.
• The rapid adoption of technological innovations in healthcare, including electronic health records (EHRs), telehealth, and advanced medical equipment, enhances the efficiency and effectiveness of SNFs in the region.
• North America has a relatively large pool of trained and certified healthcare professionals, including nurses, therapists, and medical aides, essential for providing high-quality skilled nursing care.

Asia Pacific

• The Asia Pacific region is the fastest-growing skilled nursing facility (SNF) market. The Asia Pacific region is experiencing rapid demographic shifts with an increasing elderly population, driving demand for long-term and skilled nursing care services.
• The region faces a growing burden of chronic diseases such as diabetes, cardiovascular conditions, and neurological disorders, necessitating continuous medical and nursing care.
• Robust economic growth in many Asia Pacific countries has increased disposable incomes and the ability to afford quality healthcare services, including SNFs.
• Significant investments in healthcare infrastructure, including establishing and upgrading SNFs, enhance the availability and quality of skilled nursing services.
• Governments in the region are implementing policies and programs to support elderly care, including subsidies and incentives for developing SNFs.
• Growing awareness about the importance of professional healthcare services and long-term care options is driving demand for SNFs among the population.
• Some countries in the Asia Pacific region are becoming popular destinations for medical tourism, which includes long-term rehabilitation and skilled nursing care, contributing to market growth.
• Rapid urbanization and the shift from extended to nuclear family structures limit the traditional caregiving capacity of families, increasing reliance on professional SNFs.

Global Skilled Nursing Facility MarketSegmentation Analysis

The Global Skilled Nursing Facility Market is segmented on the basis of Type, Ownership, Service, And Geography.

Skilled Nursing Facility Market, By Type

• Freestanding
• Hospital

Based on Type, the market is bifurcated into Freestanding and Hospital. Freestanding facilities are expected to dominate the total revenue share during the forecast period. These facilities offer the most affordable option for patients requiring round-the-clock assistance. The growth of this market is primarily driven by high Medicare reimbursements. According to MedPAC, the average Medicare margin for freestanding and skilled nursing facilities was over 11%. Additionally, the California Hospital Association reported that Medicare payments to skilled nursing homes will increase by 5% in 2022. Consequently, higher Medicare spending is anticipated to drive market expansion for standalone institutions.

Skilled Nursing Facility Market, By Ownership

• For Profit
• Non-Profit
• Government

Based on Ownership, the market is bifurcated into Government, For-Profit, and Non-Profit. The for-profit Skilled Nursing Facility Market is expected to lead throughout the forecast period due to the superior quality of care provided in these facilities. This includes higher staffing levels, better staff training and education, robust quality improvement programs, and stringent regulatory compliance, all of which contribute to their leadership position compared to other segments.

Skilled Nursing Facility Market, By Service

• Intensive Rehabilitation Therapy
• Low And Medium Rehabilitation
• Medically Complex

Based on Service, the market is bifurcated into Intensive Rehabilitation Therapy, Low and Medium Rehabilitation, and Medically Complex. The commercial Skilled Nursing Facility Market is expected to lead throughout the forecast period. A crucial service offered in many skilled nursing facilities is intensive rehabilitation therapy, which aids patients in recovering from illness or injury and regaining their independence. This therapy often includes physical therapy, occupational therapy, and speech therapy, and is typically customized to address the specific needs of each patient.

Key Players

The “Global Skilled Nursing Facility Market” study report will provide valuable insight emphasizing the global market. The major players in the market are Gentiva Health Services, Life Care Centers of America, Brookdale Senior Living, Extendicare, Inc., Lincare, Inc., Golden Living, Emeritus Corporation, Genesis Healthcare, Sunrise Senior Living Inc.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In December 2020, Ensign Group announced the acquisition of Hays Nursing and Rehabilitation Center in Texas.
• In February 2019, Genesis Healthcare and Next Health Capital formed a real estate partnership involving 15 skilled nursing facilities, aiming to expand service availability to a broader patient base.
• In February 2021, Omega Healthcare secured a $150 million deal with Healthpeak Properties, acquiring Brookdale Senior Living in the United States.

Report Scope

Research Methodology of Market Research

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the pa