Press release
USA Skilled Nursing Facilities Market Set to Surge to USD 279.9 billion by 2035 with 3.3% CAGR Analysis by Future Market Insights
United States skilled nursing facility (SNF) market Overview:
A Skilled Nursing Facility (SNF) provides comprehensive medical and rehabilitative services for patients who require daily assistance and supervision. These facilities typically offer 24-hour nursing care, physical and occupational therapy, and other post-acute care services for individuals recovering from surgeries, injuries, or managing long-term conditions.
United States skilled nursing facility (SNF) market Dynamics and Value Insights:
The continued growth of Medicare Advantage (MA) is a crucial driver of SNF utilization across the U.S. The number of MA beneficiaries reached nearly 30 million in 2023, significantly contributing to post-acute care referrals. MA plans often emphasize cost efficiency and rehabilitation-based care management strategies, ensuring higher SNF occupancy rates.
United States skilled nursing facility (SNF) market Key Trends and Technological Advancements:
Federal Staffing Mandate Debate: The proposed CMS staffing mandates are among the most debated developments in the SNF market. The mandate, which requires additional 16,000 registered nurses and 75,000 nurse aides nationwide, could cost facilities between USD 4.2 billion to USD 7.1 billion annually.While the goal is to enhance care quality, the policy faces resistance from advocacy groups and facility operators due to ongoing workforce shortages and rising labor costs. Smaller and rural facilities are particularly vulnerable to compliance costs, potentially leading to closures and reduced care access.Despite the challenges, the mandate is driving innovation in workforce retention, training programs, and automation technologies, improving the long-term efficiency and competitiveness of SNFs.
United States skilled nursing facility (SNF) market Challenges Impacting Growth:
Despite positive momentum, several structural challenges constrain market growth:
Workforce Shortages: Persistent nurse and aide shortages are the most critical bottlenecks, affecting care quality and operational capacity.
Reimbursement Constraints: Heavy dependence on Medicaid and government funding limits financial flexibility, as reimbursement rates often lag behind inflation and rising care costs.
Facility Closures: More than 450 SNFs have closed since 2020, reflecting financial strain, particularly in rural regions.
Operational Costs: Inflation and labor costs have increased post-pandemic, reducing profit margins and slowing recovery despite growing demand.
United States skilled nursing facility (SNF) market Historical vs Forecast Outlook (2020-2035):
Between 2020 and 2024, the U.S. SNF industry grew at a CAGR of 3.1%, increasing from USD 171.9 billion to USD 194.2 billion. The COVID-19 pandemic caused a temporary setback due to occupancy declines and staffing shortages, but the market has gradually stabilized post-2022.
Looking ahead, sustained recovery will depend on enhanced Medicaid funding, AI-driven productivity, and workforce resilience programs. While short-term challenges persist, the long-term outlook remains stable with increasing demand from the senior population.
United States skilled nursing facility (SNF) market Category and Segment Insights:
By Type: Freestanding SNFs dominate with a 77.1% share (2025).
These facilities offer cost-efficient, specialized services such as rehabilitation, post-surgical recovery, and long-term care, making them more flexible than hospital-based SNFs.
By Ownership: For-Profit SNFs lead with a 74.3% share (2025).
They exhibit higher financial agility, investment in infrastructure, and efficiency-driven management, attracting private-pay residents and ensuring stronger revenue flows.
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United States skilled nursing facility (SNF) market Recent Developments:
August 2024: Genesis Healthcare, Inc. received the Gold Excellence in Quality Award from AHCA/NCAL, highlighting leadership in care quality and innovation.
August 2022: Sunrise Senior Living launched its second luxury senior lifestyle community, The Apsley, in New York City, expanding its footprint in the premium care segment.
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About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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