Nursing homes suffering from reimbursement shifts to home care, market analysis finds

Share this article:
Site-neutral payments likely to move forward, experts believe
Site-neutral payments likely to move forward, experts believe

Reimbursement is shifting to home health, hurting the finances of skilled nursing facilities, a newly released market analysis states.

The nursing care sector grew at an average annual rate of 1.6% between 2008 and 2013, according to the report announced Tuesday by Research and Markets, which describes itself as the world's largest seller of market research.

The skilled care market is “increasingly suffering from state efforts to reimburse lower cost home care over higher priced nursing care,” according to a summary of the report.

Home care expanded at an annual average rate of 7.2% during that same time period, the report shows. This was the fastest rate of growth among all long-term care sectors. Assisted living grew at an average annual rate of 5.6%.

Long-term care, as a whole, has been in a period of “solid expansion,” the report summary states. The market — encompassing assisted living, home care, nursing and hospice — grew from more than $224 billion in 2008 to nearly $277 billion last year.

The long-term care sector also has been a hotbed of merger and acquisition activity recently, according to a separate report that was released last week by Irving Levin Associates Inc. Deal volume decreased last year in every healthcare arena except long-term care, that report showed.

Share this article:

More in News

Genesis, Skilled Healthcare merger to create huge long-term care provider with more than 500 facilities

Genesis, Skilled Healthcare merger to create huge long-term ...

Genesis HealthCare and Skilled Healthcare Group Inc. will merge to create a single long-term and post-acute care company with more than 500 facilities nationwide, the providers announced Tuesday.

Antipsychotic use tied to acute kidney injury, increasing pressure on nursing home ...

Older people who take antipsychotic medications are at a markedly increased risk of acute kidney injury, according to newly published research findings out of Canada. The study further supports ongoing efforts to reduce the number of nursing home residents on these drugs.

Family alleges long-term care facility banned them due to social media posts, ...

Family members of a Texas long-term care resident have sued the facility where she lives, claiming they were banned from visiting due to their social media posts, according to a publication covering legal proceedings in the state.