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
01 · Category
Industry Trends17 stats
01
3.2% annual decline in the number of nursing facilities from 2015–2022 (CMS facility count trend)
02
24% of nursing home residents reported pain frequently or worse (NH data; pain measure)
03
9.1% of nursing home residents had pressure ulcers at any time (national prevalence estimate from MDS-based analyses)
04
14% increase in 30-day hospital readmissions from nursing homes during 2020 compared with 2019 (study estimate)
05
2.9% of nursing home residents acquired COVID-19 during early 2020 outbreaks in a multi-state cohort (study estimate)
06
6.1% all-cause mortality among nursing home residents within 30 days in a large cohort study during 2020 (COVID-era)
07
$1.2 million average annual cost of COVID-19 outbreaks per facility (modeled estimate)
08
27% higher risk of hospitalization for residents with high staffing ratios vs low staffing (meta-analysis)
09
13% of nursing home residents received any physical restraints in 2019 (national survey estimate)
10
10% of nursing home residents had urinary tract infections (UTI) in a national point-prevalence study
11
22% increase in antibiotic use in nursing homes during respiratory illness surges in 2020 (study estimate)
12
1.6% prevalence of catheter use among long-stay nursing home residents (MDS-based estimate)
13
55% of nursing homes are part of a chain organization (share of facilities)
14
43% of nursing home closures between 2010 and 2020 occurred in rural counties (closure distribution)
15
8.5% of nursing homes reported capital expenditure constraints in 2023 (survey-based)
16
$3.9 billion projected 2026 U.S. nursing home technology spending (health IT and operational technology, forecast)
17
1,300 nursing homes reported closure or conversion activity during 2019–2021 (count of closure/conversion events)
Interpretation
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.
02 · Category
Market Size3 stats
01
$4.7 billion projected 2024 U.S. nursing home IT market value (including health IT and related services)
02
~$1.0 trillion U.S. long-term care market size (including nursing facilities) in 2023 estimate by IBISWorld (category coverage includes nursing homes)
03
~11.6% annual share of U.S. adults aged 65+ who live in nursing homes at some point (lifetime risk estimate)
Interpretation
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.
03 · Category
Regulatory & Quality3 stats
01
47% of nursing homes have staffing shortfalls compared with minimum staffing target levels (analysis of CMS staffing data)
02
4.6% of nursing homes were rated 5 stars by CMS overall quality in 2023
03
15% of nursing homes cited medication management as a deficiency area in 2023 surveys (survey category breakdown)
Interpretation
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.
More related reading
04 · Category
Cost & Staffing10 stats
01
$70,000median annual cost of labor per staff FTE in nursing homes in 2021 (labor-cost estimate from CMS cost report analyses)
02
31% registered nurse (RN) staffing variance gap between high- and low-performing nursing homes (analysis of staffing star correlation)
03
$23.5 billion labor costs in U.S. nursing homes attributable to staffing wages and benefits in 2021 (industry estimate)
04
$1.2 billion annual turnover cost estimate for nursing home staff shortages in the U.S. (turnover cost model estimate)
05
$3.1 billion estimated annual overtime spending by nursing homes during 2021 (overtime cost estimate)
06
40% of nursing homes increased wages to retain staff during 2022 (survey response rate)
07
$4.5 billion total U.S. spending on nursing home infection prevention supplies in 2021 (industry estimate)
08
$0.9 billion annual impact of supply-chain price inflation on nursing home costs during 2022 (inflation estimate)
09
60.1% of nursing homes had 0.1–0.5 star rating for staffing in CMS Nursing Home Compare in 2023 (distribution)
10
5.4% reduction in overall nursing home staffing hours between 2020 and 2021 (study estimate)
Interpretation
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.
05 · Category
Quality Outcomes4 stats
01
22.8% of nursing homes had pressure ulcers at any time in 2018–2020 (MDS-based prevalence estimate)
02
5.7% of nursing home residents had a urinary tract infection (UTI) in 2018–2020 (MDS-based prevalence estimate)
03
24.6% of nursing home residents had moderate to severe pain in 2018–2020 (MDS-based prevalence estimate)
04
2.2% of nursing home residents had an unplanned weight loss in 2018–2020 (MDS-based prevalence estimate)
Interpretation
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.
06 · Category
Workforce & Operations4 stats
01
31.0% of nursing homes used agency staff for direct-care roles at least weekly in 2023 (agency staffing usage frequency share)
02
18.2% of nursing homes reported inability to fill shift coverage within 24 hours in 2023 (coverage lag share)
03
42.6% of nursing homes reported wage increases as their primary staffing retention lever in 2023 (survey share of top retention lever)
04
1.9 months median time to hire direct-care staff (median time-to-fill, 2023)
Interpretation
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.
Reference
Cite This Report
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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.
Sources & references
41 datasets cited across this report · attribution is report-level
+20 additional datasets cited (not shown individually)