LTC industry generates $259 billion in revenue during 2011
Overall revenues for the U.S. long-term care industry grew 31 percent since 2006, reaching $259 billion in 2011, according to a new report from Kalorama Information.
The four market segments included in the report are: nursing home, assisted living, hospice and home care.
The strongest growth occurred in the hospice and home care segments, which each expanded by 7.5 percent per year since 2006, while assisted living revenues grew at a rate of 5.7 percent per year. Nursing home revenues grew sluggishly at 3.8 percent per year, which Kalorama said is “closely tied to nominal demographic growth.”
Long-term care as an industry is forecasted to reach overall revenues of $352.8 billion in 2016, according to the report.
“The key finding that we would stress here is the industry is growing because of demographics, which won’t surprise many,” said Kalorama Information Publisher Bruce Carlson. “But all sectors will face pressure from government cutbacks and declining home values putting pressure on clients’ ability to pay.
“Nursing homes will face less reimbursement. Assisted living, already non-reimbursed by government plans, will increasingly become an option for those with long-term care insurance.”
Approximately $111 billion was spent on nursing home care in the United States during 2011—up from $92 billion in 2006—and total nursing home expenditures are forecast to reach $143 billion by 2016, according to the report.
HCR ManorCare led the 2011 market with nursing facility revenues of more than $3.3 billion and 3 percent share. Kindred Healthcare followed with nursing home revenues of $2.1 billion and 1.9 percent share. Golden Living was ranked third with nursing home revenues of $1.8 billion in 2011 and 1.7 percent market share.
The U.S. assisted living industry, by contrast, totaled $42.7 billion in 2006, reached $56.3 billion in 2011 and is expected to exceed $79 billion in 2016, according to the report.
Sunrise Senior Living led the 2011 market with assisted living revenues of almost $1.3 billion and 2.3 percent share. Sunrise was closely followed by Emeritus Corp. with $1.2 billion and 2.2 percent share. Brookdale Senior Living, which recently passed Emeritus as the nation’s largest senior living provider, was ranked third with $1 billion in assisted living revenues and 1.9 percent share.
The full report is available for purchase from Kalorama here.