Nursing homes had the weakest revenue growth in the long-term care sector in 2011 due to reliance on government funding, a new report reveals.
The long-term care industry as a whole — including assisted living, hospice, home healthcare and skilled nursing care — demonstrated revenue growth of 5.5% between 2006 and 2011, reaching $259 billion, according to a report from Kalorama Information. The strongest performers in the LTC segment were hospice and home health.
Nursing home revenue growth was down due to state budget deficits and Medicaid cuts. According to the report, nursing home care was the largest single budget item in many states, accounting for an average of 22% of total budgets across the states.
Assisted living, however, appears poised for further growth, the report asserts.
“With the increased promotional efforts of assisted living and adult communities, norms are shifting and the stigma that was once associated with institutional living, though not gone, is eroding,” Kalorama Publisher Bruce Carlson said.
Click here to purchase the report, titled “Long Term Care Market: Nursing Homes, Home Care, Hospice Care, and Assisted Living.”
