Nursing Homes & Long-Term Care Facilities
Brief Excerpt from Industry Overview Chapter:
Companies in this industry provide long-term skilled nursing care, other types of care, and social services in residential facilities. Major US companies include Brookdale Senior Living, Genesis Healthcare, and Golden LivingCenters (owned by GGNSC Holdings), all based in the US, along with Bupa (UK), Extendicare (Canada), and Korian and Orpea (both based in France).
Demand for long-term care services is strong due to rapidly aging populations in the US and other developed nations. However, the profitability of individual nursing facilities depends heavily on efficient operations, as revenue per patient is largely controlled by government insurance programs such as Medicare and Medicaid. Many companies are struggling with low reimbursements and the shift toward outpatient care. Large companies have some economies of scale in administration and purchasing, but small operators can compete effectively by offering better service. The US industry is fragmented: the 50 largest companies account for about 20% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
The industry includes skilled nursing facilities for recovery from acute or chronic medical conditions (about half of US revenue), retirement and assisted living centers (about 25%), residential mental health and disability facilities (about 20%), and various types of group home and community care arrangements.
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