Skilled Nursing Facility Market Outlook: Healthcare Demand and Growth Opportunities

Rising aging populations, increasing prevalence of chronic diseases, and higher demand for post-acute and long-term care are driving growth in the skilled nursing facility market. According to IMARC Group's latest research publication, The global skilled nursing facility market size reached USD 377.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 655.2 Billion by 2033, exhibiting a growth rate (CAGR) of 6.32% during 2025-2033.

How AI is Reshaping the Future of Skilled Nursing Facility Market

• AI-Powered Patient Monitoring and Fall Detection: Ambient intelligent sensors use computer vision to detect motion patterns and behaviors indicating declining functional ability. These systems identify fall-risk patients attempting bed exits and send instant staff alerts, enabling preventive interventions that reduce hospitalizations and improve safety outcomes.
• Predictive Analytics for Clinical Decision Support: Machine learning models analyze vital signs, progress notes, and historical data to flag deteriorating patients before critical events. Facilities implementing AI-driven clinical huddles report cutting hospital transfers in half by catching sepsis early and addressing changes proactively rather than reactively.
• Automated Admissions and Workflow Optimization: AI platforms review lengthy hospital records, extract risk factors, and predict discharge needs with 88% accuracy. Clinware's system secured USD 4.25 million in funding to help facilities admit patients faster, maximize reimbursement, and free nurses from manual tasks for direct care.

Access the Latest 2026 Market Data & Forecasts

Skilled Nursing Facility Industry Overview:

The skilled nursing sector is undergoing significant transformation driven by Medicare policy updates and value-based care models. CMS finalized a USD 1.4 billion payment increase for skilled nursing facilities, representing a net 4.2% boost in Medicare Part A reimbursements. This includes a 3% market basket update plus a 1.7 percentage point forecast error adjustment. The Patient-Driven Payment Model continues evolving with updated ICD-10 code mappings enabling more accurate diagnoses and appropriate reimbursement for skilled interventions during Part A stays.

Skilled Nursing Facility Market Trends & Drivers

The aging population surge is fundamentally reshaping demand for skilled nursing services across all developed markets. The U.S. Census Bureau projects the population aged 65 and older will double to approximately 98 million people, dramatically increasing the need for specialized long-term care. This demographic shift coincides with rising chronic disease prevalence—cardiovascular conditions, dementia, arthritis, and diabetes—requiring continuous medical supervision and rehabilitation therapies. About 15% of hospital patients now discharge to skilled nursing facilities for intensive recovery services. SNFs provide critical bridge care between acute hospitalization and home, offering physical therapy, wound care, medication management, and 24-hour nursing support that prevents costly rehospitalizations while helping seniors regain independence.

Technology adoption and staffing innovation are driving operational efficiency improvements throughout the industry. AI-powered patient monitoring launched in October 2023 across OSF Healthcare's partner network now provides real-time alerts equivalent to "an extra nurse sitting at your desk," according to operations directors. These systems catch patients before turning septic, reducing unnecessary hospital transfers while managing persistent nursing shortages. Facilities implementing ambient sensors and predictive analytics report faster clinical responses, shorter hospital stays, and lower readmission rates. The shift addresses critical workforce challenges—ongoing nursing shortages and high turnover rates—by reducing administrative burdens and allowing skilled professionals to focus on clinical excellence rather than manual documentation. Early adopters demonstrate measurable improvements in both staff satisfaction and patient outcomes through intelligent automation.

Medicare policy changes and value-based purchasing programs are fundamentally altering financial incentives and quality standards. CMS withholds 2% of SNFs' Medicare fee-for-service Part A payments to fund the Value-Based Purchasing Program, redistributing 50-70% as performance-based incentive payments. New quality metrics emphasize patient satisfaction, infection control, discharge planning, and health equity considerations. The Skilled Nursing Facility Quality Reporting Program now requires facilities to collect social determinants of health data including living situation, food security, and utilities access for residents admitted after October. Facilities failing to meet QRP requirements face a 2% reduction in Annual Payment Updates, making verifiable compliance a financial imperative. These policy shifts reward outcomes over volume, encouraging SNFs to invest in technologies and care models that demonstrably improve resident well-being while controlling costs.

Leading Companies Operating in the Global Skilled Nursing Facility Industry:

• Brookdale Senior Living Inc.
• Extendicare Inc.
• Genesis HealthCare
• Life Care Centers of America Inc.
• Lincare Holdings Inc. (Linde plc)
• ProMedica Health System Inc.
• SavaSeniorCare Administrative Services LLC
• Sunrise Senior Living (Red Fox Holding Corporation)
• The Ensign Group Inc.

Skilled Nursing Facility Market Report Segmentation:

By Facility Type:

• Freestanding
• Hospital

Freestanding facilities account for the majority of the market share, as they operate independently with specialized focus on comprehensive long-term care and personalized services.

By Service Type:

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

Intensive rehabilitation therapy holds the largest share, driven by critical demand for high-frequency, goal-oriented recovery programs following surgeries, strokes, and traumatic injuries.

By Ownership Type:

• Non-Profit
• For-Profit
• Government

For-profit represents the leading segment, benefiting from substantial investment capacity for infrastructure upgrades, advanced technologies, and competitive service offerings.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America leads the market due to robust healthcare infrastructure, advanced medical technology, significant long-term care investments, and favorable government policies supporting skilled nursing services.

Recent News and Developments in Skilled Nursing Facility Market

• October 2025: Clinware launched its AI-powered admissions and clinical workflow optimization platform, securing USD 4.25 million in private funding. Built specifically for skilled nursing facilities, the platform uses predictive analytics and intelligent automation to help facilities admit patients faster, maximize reimbursement, and reduce manual administrative tasks.
• September 2025: SAIVA AI deployed clinical decision support systems that cut hospital transfers in half at high-hospitalization facilities. The platform provides instant 24-hour reports with vital signs, progress notes, and risk assessments, helping experienced and newer nurses focus on critical patient needs.
• June 2025: OSF Healthcare expanded AI-powered monitoring technology across nursing home partners Allure Group and Arcadia Care. The initiative, which launched in October 2023, catches patients before deterioration and provides real-time alerts, addressing staffing shortages while improving patient outcomes.
• April 2024: SSM Health partnered with Inbound Health to offer personalized in-home post-hospital care as an alternative to traditional skilled nursing facilities. This innovative approach aims to provide patients with high-quality care in comfortable home settings.
• September 2023: A Place for Mom launched Nursinghomes.com, expanding services into the nursing home sector. The comprehensive platform provides families with detailed facility information, evaluations, and contact resources for skilled nursing and long-term care facilities.

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