Skilled Nursing Facility

Global Skilled Nursing Facility Market to Reach US$437.2 Billion by 2030

The global market for Skilled Nursing Facility estimated at US$330.2 Billion in the year 2024, is expected to reach US$437.2 Billion by 2030, growing at a CAGR of 4.8% over the analysis period 2024-2030. Hospital Facility, one of the segments analyzed in the report, is expected to record a 5.7% CAGR and reach US$287.2 Billion by the end of the analysis period. Growth in the Freestanding Facility segment is estimated at 3.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$90.0 Billion While China is Forecast to Grow at 8.9% CAGR

The Skilled Nursing Facility market in the U.S. is estimated at US$90.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$92.3 Billion by the year 2030 trailing a CAGR of 8.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.9% and 3.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.8% CAGR.

Global Skilled Nursing Facility Market - Key Trends & Drivers Summarized

Why Are Skilled Nursing Facilities Becoming Integral to Post-Acute and Long-Term Care Delivery?

Skilled nursing facilities (SNFs), licensed healthcare establishments providing round-the-clock nursing care and rehabilitative services, have become increasingly essential in bridging the gap between acute hospitalization and home-based recovery. As hospital lengths of stay continue to shorten due to cost pressures and patient throughput mandates, SNFs now play a critical role in managing the continuum of care, particularly for elderly, post-surgical, and chronically ill patients. These facilities are equipped to deliver complex clinical services such as wound care, intravenous therapy, physical therapy, and chronic disease management under physician oversight, differentiating them from custodial or assisted living environments.

The aging global population is a primary catalyst behind the growth of SNFs. As the prevalence of age-related conditions-such as stroke, Alzheimer-s disease, cardiac failure, orthopedic degeneration, and cancer-increases, demand for high-acuity care environments outside hospitals is accelerating. SNFs offer a cost-effective alternative with the infrastructure to support mobility-impaired patients, infection control protocols, fall prevention, and multidisciplinary rehabilitation. Moreover, with the rise in comorbidities and polypharmacy in the senior population, SNFs provide medication management, nutritional oversight, and continuous monitoring, helping reduce rehospitalization rates and improving patient outcomes.

How Are Regulatory Frameworks, Payment Models, and Accreditation Standards Shaping the Market?

The regulatory and reimbursement landscape significantly influences operational models and profitability within skilled nursing facilities. In the United States, the transition to the Patient-Driven Payment Model (PDPM) under Medicare Part A has shifted reimbursement from volume-based therapy billing to case-mix adjusted payments based on patient clinical complexity. This reform incentivizes facilities to tailor care plans to functional needs rather than therapy minutes, increasing demand for clinical assessment expertise and interdisciplinary care coordination. As similar bundled payment and diagnosis-related group (DRG) models emerge in other countries, facilities are re-engineering workflows to align with value-based care goals.

Accreditation bodies such as the Joint Commission and national regulatory agencies are mandating quality benchmarks related to infection rates, falls, hospital readmissions, staffing ratios, and patient satisfaction. These requirements are pushing SNFs to invest in electronic health records (EHRs), quality improvement programs, staff credentialing, and real-time data tracking systems. Facilities that meet high-quality standards are often eligible for financial incentives or preferred partnerships with hospitals and accountable care organizations (ACOs), while underperforming SNFs risk penalties, decertification, or exclusion from payer networks.

International markets are also adapting. In Europe, especially Germany, France, and the UK, government-subsidized SNFs are integrating with home health and community care services to streamline transitions. In Asia-Pacific, nations like Japan and South Korea are expanding public-private collaborations to address the shortage of geriatric skilled care infrastructure. India, China, and Southeast Asia are witnessing early-stage development of private SNF networks, catering to urban, middle-income demographics with growing demand for institutional eldercare.

What Role Are Technology, Infrastructure, and Workforce Innovations Playing in Modernizing SNFs?

The modernization of skilled nursing facilities is being driven by investments in digital health technologies, infrastructure optimization, and workforce training. EHRs and integrated care platforms are enabling smoother transitions from hospitals to SNFs, supporting medication reconciliation, allergy tracking, and automated care planning. Telemedicine integration allows off-site specialists to consult with patients in SNFs, reducing the need for emergency transfers and facilitating chronic condition monitoring. Wearable devices and remote patient monitoring systems are increasingly used to track vital signs, alert staff to early deterioration, and enable data-driven clinical decision-making.

Smart facility design is becoming a focal point in both new and retrofitted SNFs. Touch-free infrastructure, HEPA filtration, negative pressure rooms, and modular care pods are being incorporated to enhance infection control and pandemic readiness. Accessibility improvements, including anti-slip flooring, bariatric care equipment, and automated mobility aids, improve resident safety and quality of life. Multipurpose communal spaces and therapeutic gardens are being included to address mental health and social engagement, particularly in long-stay populations.

Workforce shortages remain a critical constraint, particularly in nursing, physiotherapy, and geriatrics. Facilities are responding by offering upskilling programs, leveraging AI-based scheduling software, and partnering with nursing schools to establish talent pipelines. Mobile apps and cloud-based platforms are also being used for shift coordination, incident reporting, and performance analytics, improving staff engagement and administrative efficiency. Multilingual and culturally competent care teams are increasingly prioritized in regions with diverse populations. Staffing resilience and burnout mitigation are becoming central themes in SNF management, particularly in light of pandemic-induced stressors.

What Is Driving Long-Term Growth and Investment in the Skilled Nursing Facility Sector?

The growth in the global skilled nursing facility market is driven by several factors, most notably the demographic shift toward older populations and the increasing incidence of chronic, degenerative, and post-acute conditions. According to WHO data, the global population aged 60 and over will double by 2050, creating structural demand for long-term care environments. As more elderly individuals outlive their functional independence but remain medically stable, SNFs are becoming the preferred care option for families seeking cost-effective, high-quality alternatives to hospitalization or home-based care.

Payer systems are also reinforcing this shift. In the U.S., Medicare Advantage plans, Medicaid managed care programs, and private insurers are increasingly covering SNF stays as part of post-acute care bundles. Similar trends in Europe and Australia, where national health services are under fiscal strain, are leading to expanded public-private SNF partnerships. Investment from private equity, real estate investment trusts (REITs), and healthcare conglomerates is rising, particularly in countries where SNF real estate and operations offer stable yields and long-term rental streams. Strategic acquisitions, franchising, and greenfield developments are reshaping the sector-s global footprint.

Finally, changing patient and caregiver expectations are altering SNF models. Families now seek facilities offering personalized care, therapeutic engagement, transparent communication, and hotel-like amenities. This is leading to the rise of luxury SNFs with private rooms, wellness programming, and concierge services-especially in urban centers and affluent suburban regions. Simultaneously, demand for culturally and religiously attuned SNFs is growing, with facilities offering language-specific services, dietary accommodations, and community-centered care models. These trends, along with technology adoption and regulatory evolution, will continue to drive transformation and growth in the skilled nursing facility market over the next decade.

SCOPE OF STUDY:

The report analyzes the Skilled Nursing Facility market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Facility Type (Hospital Facility, Freestanding Facility); Service Type (Intensive Rehabilitation Therapy Service, Low & Medium Rehabilitation Service, Medically Complex Service); Ownership Type (Non-Profit Ownership, For-Profit Ownership, Government Ownership)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 36 Featured) -

• Amedisys Inc.
• Atrium Health & Senior Living
• The Ensign Group, Inc.
• Atria Senior Living
• Brookdale Senior Living Solutions
• CareOne LLC
• Centers Health Care
• Consulate Health Care
• Diversicare Healthcare Services Inc.
• Encompass Health Corporation
• Genesis HealthCare Inc.
• Golden Living
• Kindred Healthcare, LLC
• LHC Group Inc.
• Life Care Centers of America
• Life Care Services LLC (LCS)
• National HealthCare Corporation
• ProMedica Senior Care
• Saber Healthcare Group
• Signature HealthCARE LLC
• Sunrise Senior Living, LLC
• Trilogy Health Services LLC

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