Nursing Homes & Long-Term Care Facilities
Companies in this industry provide long-term skilled nursing care, other types of care, and social services in residential facilities. Major companies include Brickyard Healthcare, Brookdale Senior Living, and Genesis Healthcare (all based in the US); along with Bupa (UK), Extendicare (Canada), and Korian and Orpea (both based in France).
The proportion of people over 60 is expected to grow from 12% to 22% of the world's population between 2015 and 2050, according to the World Health Organization. While the number of nursing facilities varies by region, a growing number of countries -- particularly those with some form of national health insurance -- are experiencing an increase in demand for long-term care options for their aging and infirm citizens.
The US nursing homes and long-term care facilities industry includes about 90,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $240 billion.
Competitive Landscape
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 highly 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), residential intellectual
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