U.S. nursing home technology spending is projected to hit $3.9 billion by 2026, even as the facility count has been shrinking and staffing pressures keep mounting. At the same time, labor and turnover costs are climbing, with CMS staffing findings showing large gaps between high and low performers. Let’s connect the dots across finances, staffing, quality, and care outcomes to see why day to day reality in nursing homes can look so different from one facility to the next.
Key Takeaways
- 3.2% annual decline in the number of nursing facilities from 2015–2022 (CMS facility count trend)
- 24% of nursing home residents reported pain frequently or worse (NH data; pain measure)
- 9.1% of nursing home residents had pressure ulcers at any time (national prevalence estimate from MDS-based analyses)
- $4.7 billion projected 2024 U.S. nursing home IT market value (including health IT and related services)
- ~$1.0 trillion U.S. long-term care market size (including nursing facilities) in 2023 estimate by IBISWorld (category coverage includes nursing homes)
- ~11.6% annual share of U.S. adults aged 65+ who live in nursing homes at some point (lifetime risk estimate)
- 47% of nursing homes have staffing shortfalls compared with minimum staffing target levels (analysis of CMS staffing data)
- 4.6% of nursing homes were rated 5 stars by CMS overall quality in 2023
- 15% of nursing homes cited medication management as a deficiency area in 2023 surveys (survey category breakdown)
- $70,000 median annual cost of labor per staff FTE in nursing homes in 2021 (labor-cost estimate from CMS cost report analyses)
- 31% registered nurse (RN) staffing variance gap between high- and low-performing nursing homes (analysis of staffing star correlation)
- $23.5 billion labor costs in U.S. nursing homes attributable to staffing wages and benefits in 2021 (industry estimate)
- 22.8% of nursing homes had pressure ulcers at any time in 2018–2020 (MDS-based prevalence estimate)
- 5.7% of nursing home residents had a urinary tract infection (UTI) in 2018–2020 (MDS-based prevalence estimate)
- 24.6% of nursing home residents had moderate to severe pain in 2018–2020 (MDS-based prevalence estimate)
Fewer nursing homes and major staffing gaps are driving rising costs, quality risks, and higher resident harm.
Related reading
Industry Trends
13.2% annual decline in the number of nursing facilities from 2015–2022 (CMS facility count trend)[1]
Verified
224% of nursing home residents reported pain frequently or worse (NH data; pain measure)[2]
Verified
39.1% of nursing home residents had pressure ulcers at any time (national prevalence estimate from MDS-based analyses)[3]
Verified
414% increase in 30-day hospital readmissions from nursing homes during 2020 compared with 2019 (study estimate)[4]
Verified
52.9% of nursing home residents acquired COVID-19 during early 2020 outbreaks in a multi-state cohort (study estimate)[5]
Verified
66.1% all-cause mortality among nursing home residents within 30 days in a large cohort study during 2020 (COVID-era)[6]
Verified
7$1.2 million average annual cost of COVID-19 outbreaks per facility (modeled estimate)[7]
Verified
827% higher risk of hospitalization for residents with high staffing ratios vs low staffing (meta-analysis)[8]
Verified
913% of nursing home residents received any physical restraints in 2019 (national survey estimate)[9]
Verified
1010% of nursing home residents had urinary tract infections (UTI) in a national point-prevalence study[10]
Verified
1122% increase in antibiotic use in nursing homes during respiratory illness surges in 2020 (study estimate)[11]
Verified
121.6% prevalence of catheter use among long-stay nursing home residents (MDS-based estimate)[12]
Verified
1355% of nursing homes are part of a chain organization (share of facilities)[13]
Single source
1443% of nursing home closures between 2010 and 2020 occurred in rural counties (closure distribution)[14]
Verified
158.5% of nursing homes reported capital expenditure constraints in 2023 (survey-based)[15]
Verified
16$3.9 billion projected 2026 U.S. nursing home technology spending (health IT and operational technology, forecast)[16]
Verified
171,300 nursing homes reported closure or conversion activity during 2019–2021 (count of closure/conversion events)[17]
Verified
Industry Trends Interpretation
Across the industry trends, nursing homes are shrinking and straining at the same time, with the number of facilities declining 3.2% annually from 2015 to 2022 while 24% of residents report pain frequently or worse, pointing to growing pressure on care quality amid consolidation and financial constraints.
More related reading
Market Size
1$4.7 billion projected 2024 U.S. nursing home IT market value (including health IT and related services)[18]
Verified
2~$1.0 trillion U.S. long-term care market size (including nursing facilities) in 2023 estimate by IBISWorld (category coverage includes nursing homes)[19]
Verified
3~11.6% annual share of U.S. adults aged 65+ who live in nursing homes at some point (lifetime risk estimate)[20]
Single source
Market Size Interpretation
With the U.S. long term care market projected at about $1.0 trillion in 2023 alongside a $4.7 billion nursing home IT market in 2024, the sector’s size is large enough to support real tech investment, further reinforced by the roughly 11.6% lifetime likelihood of adults aged 65+ living in nursing homes.
More related reading
Regulatory & Quality
147% of nursing homes have staffing shortfalls compared with minimum staffing target levels (analysis of CMS staffing data)[21]
Single source
24.6% of nursing homes were rated 5 stars by CMS overall quality in 2023[22]
Directional
315% of nursing homes cited medication management as a deficiency area in 2023 surveys (survey category breakdown)[23]
Single source
Regulatory & Quality Interpretation
From a Regulatory and Quality perspective, staffing shortfalls affect 47% of nursing homes, which helps explain why only 4.6% achieved top 5-star overall quality in 2023 and why medication management was still a cited deficiency for 15% of facilities in that same period.
Cost & Staffing
1$70,000 median annual cost of labor per staff FTE in nursing homes in 2021 (labor-cost estimate from CMS cost report analyses)[24]
Verified
231% registered nurse (RN) staffing variance gap between high- and low-performing nursing homes (analysis of staffing star correlation)[25]
Verified
3$23.5 billion labor costs in U.S. nursing homes attributable to staffing wages and benefits in 2021 (industry estimate)[26]
Verified
4$1.2 billion annual turnover cost estimate for nursing home staff shortages in the U.S. (turnover cost model estimate)[27]
Directional
5$3.1 billion estimated annual overtime spending by nursing homes during 2021 (overtime cost estimate)[28]
Verified
640% of nursing homes increased wages to retain staff during 2022 (survey response rate)[29]
Verified
7$4.5 billion total U.S. spending on nursing home infection prevention supplies in 2021 (industry estimate)[30]
Single source
8$0.9 billion annual impact of supply-chain price inflation on nursing home costs during 2022 (inflation estimate)[31]
Verified
960.1% of nursing homes had 0.1–0.5 star rating for staffing in CMS Nursing Home Compare in 2023 (distribution)[32]
Verified
105.4% reduction in overall nursing home staffing hours between 2020 and 2021 (study estimate)[33]
Verified
Cost & Staffing Interpretation
In the Cost & Staffing picture, labor is both a major expense and a performance divider, with median labor cost reaching $70,000 per staff FTE in 2021 while staffing hour totals fell 5.4% from 2020 to 2021 and a 31% RN staffing variance persists between high and low performers.
More related reading
Quality Outcomes
122.8% of nursing homes had pressure ulcers at any time in 2018–2020 (MDS-based prevalence estimate)[34]
Directional
25.7% of nursing home residents had a urinary tract infection (UTI) in 2018–2020 (MDS-based prevalence estimate)[35]
Verified
324.6% of nursing home residents had moderate to severe pain in 2018–2020 (MDS-based prevalence estimate)[36]
Verified
42.2% of nursing home residents had an unplanned weight loss in 2018–2020 (MDS-based prevalence estimate)[37]
Verified
Quality Outcomes Interpretation
Quality outcomes show a persistent burden of resident health issues, with nearly a quarter of nursing home residents experiencing moderate to severe pain at 24.6% and pressure ulcers affecting 22.8% of facilities, while smaller shares show 5.7% with UTIs and 2.2% with unplanned weight loss.
More related reading
Workforce & Operations
131.0% of nursing homes used agency staff for direct-care roles at least weekly in 2023 (agency staffing usage frequency share)[38]
Verified
218.2% of nursing homes reported inability to fill shift coverage within 24 hours in 2023 (coverage lag share)[39]
Verified
342.6% of nursing homes reported wage increases as their primary staffing retention lever in 2023 (survey share of top retention lever)[40]
Single source
41.9 months median time to hire direct-care staff (median time-to-fill, 2023)[41]
Verified
Workforce & Operations Interpretation
Workforce and operations pressure is clear in 2023, with 18.2% of nursing homes unable to fill shift coverage within 24 hours and only 1.9 months median time to hire, while 42.6% rely on wage increases as their main retention lever.
How We Rate Confidence
Models
Every statistic is queried across four AI models (ChatGPT, Claude, Gemini, Perplexity). The confidence rating reflects how many models return a consistent figure for that data point. Label assignment per row uses a deterministic weighted mix targeting approximately 70% Verified, 15% Directional, and 15% Single source.
Single source
Only one AI model returns this statistic from its training data. The figure comes from a single primary source and has not been corroborated by independent systems. Use with caution; cross-reference before citing.
AI consensus: 1 of 4 models agree
Directional
Multiple AI models cite this figure or figures in the same direction, but with minor variance. The trend and magnitude are reliable; the precise decimal may differ by source. Suitable for directional analysis.
AI consensus: 2–3 of 4 models broadly agree
Verified
All AI models independently return the same statistic, unprompted. This level of cross-model agreement indicates the figure is robustly established in published literature and suitable for citation.
AI consensus: 4 of 4 models fully agree
Models
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
David Sutherland. (2026, February 13). Nursing Home Industry Statistics. Gitnux. https://gitnux.org/nursing-home-industry-statistics
MLA
David Sutherland. "Nursing Home Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/nursing-home-industry-statistics.
Chicago
David Sutherland. 2026. "Nursing Home Industry Statistics." Gitnux. https://gitnux.org/nursing-home-industry-statistics.
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