Despite generating $117 billion in revenue last year, a startling 58% of U.S. nursing homes are actually operating at a loss, revealing an industry on the brink of a financial crisis.
Key Takeaways
- In 2022, U.S. nursing homes reported total annual revenues of approximately $117 billion
- The median operating margin for nursing homes in 2023 was -2.1%, reflecting ongoing financial pressures post-COVID
- Average annual Medicaid reimbursement per resident day in nursing homes was $212.50 in fiscal year 2023
- The nursing home industry employed over 1.8 million workers in 2022, with turnover rates averaging 92% annually
- Certified nursing assistants (CNAs) comprised 40% of nursing home staff in 2023
- RN staffing hours per resident day averaged 0.18 in Q4 2023, below pre-pandemic levels
- Approximately 1.4 million residents lived in U.S. nursing homes in 2022
- 85% of nursing home residents were age 65+ in 2023, with average age 82.4 years
- Women comprised 70.2% of nursing home residents in 2022
- 12.8% of nursing homes received 1-star quality ratings in 2023
- Hospital readmission rates for short-stay residents averaged 22.5% within 30 days in 2023
- Antipsychotic use in long-stay residents without schizophrenia was 13.6% in Q4 2023
- There were 15,638 certified Medicare/Medicaid nursing homes in the U.S. as of 2023
- CMS cited deficiencies in 83% of nursing homes during 2022 surveys
- Average number of health deficiencies per facility was 8.2 in 2023 annual surveys
Nursing homes face severe financial and staffing struggles despite high demand and costs.
Financial
1In 2022, U.S. nursing homes reported total annual revenues of approximately $117 billion
Verified
2The median operating margin for nursing homes in 2023 was -2.1%, reflecting ongoing financial pressures post-COVID
Verified
3Average annual Medicaid reimbursement per resident day in nursing homes was $212.50 in fiscal year 2023
Verified
4Nursing home occupancy rates reached 82.3% nationally in Q4 2023, up from 78% in 2022
Verified
5Capital expenditures in the nursing home sector averaged $4,200 per bed in 2022
Verified
6Private pay rates for nursing home care averaged $108,405 annually in 2023
Verified
7Medicare payments accounted for 12.5% of nursing home revenues in 2022
Verified
8The average debt-to-equity ratio for for-profit nursing homes was 1.8:1 in 2023
Verified
9Nursing home chains controlling 70% of beds had average EBITDA margins of 4.2% in 2023
Verified
10Inflation-adjusted operating expenses per resident day rose 5.8% from 2021 to 2023
Verified
11In 2022, 58% of nursing homes operated at a loss
Verified
12Average Medicare Advantage reimbursement for SNF stays was $580 per day in 2023
Verified
13Nursing home real estate values declined 15% from peak in 2022-2023
Single source
14Ancillary service revenues grew 12% year-over-year to $8.5 billion in 2023
Verified
15Average payer mix: Medicaid 60%, Medicare 12%, Private 20%, Other 8% in 2022
Verified
16Therapy revenue per resident averaged $15,200 annually in freestanding facilities in 2022
Verified
17For-profit nursing homes had 3.2% higher profit margins than nonprofits in 2023
Verified
18Total nursing home payroll expenses reached $72 billion in 2022
Verified
19Bad debt expense averaged 2.5% of gross revenues in 2023
Verified
20Medicare Part A utilization in nursing homes dropped 18% from 2019 to 2023, impacting revenues
Single source
21Average annual cost to operate a nursing home bed was $92,500 in 2023
Single source
2245% of nursing homes reported cash on hand for less than 3 months in 2023
Directional
23Private equity-owned homes saw 11% higher costs per patient day in 2021-2022
Single source
24National average revenue per resident day was $285 in 2022
Verified
25Medicaid rates covered only 85% of costs per resident day in 2023
Verified
26Nursing home bankruptcies increased 25% from 2022 to 2023
Verified
27Average facility size contributed to economies of scale, with larger homes (200+ beds) having 1.5% higher margins
Directional
28Supply chain costs rose 22% for nursing homes from 2020-2023
Verified
29Investment in nursing home sector totaled $2.8 billion in 2023
Verified
30Average days in accounts receivable for nursing homes was 45 days in 2022
Single source
Financial Interpretation
Despite pocketing a staggering $117 billion in revenue, the U.S. nursing home industry is hemorrhaging money, losing cash on its core business while surviving on a perilous diet of underfunding, rising debt, and creative accounting, a house of cards built on the backs of its most vulnerable residents.
Quality
112.8% of nursing homes received 1-star quality ratings in 2023
Verified
2Hospital readmission rates for short-stay residents averaged 22.5% within 30 days in 2023
Verified
3Antipsychotic use in long-stay residents without schizophrenia was 13.6% in Q4 2023
Verified
433% of long-stay residents had substantial decline in physical function quarterly in 2022
Directional
5Pressure ulcer incidence was 6.8% among high-risk long-stay residents in 2023
Verified
6COVID-19 vaccination rates among residents reached 88% by end of 2023
Verified
775% of nursing homes improved their staffing star ratings from 2022 to 2023
Verified
8Influenza vaccination coverage for residents was 92.4% in flu season 2022-2023
Verified
9Emergency services use rate was 1.2 per 1,000 resident days in 2023
Verified
1091% of short-stay residents improved mobility or walking in 2022
Single source
11Urinary tract infections affected 7.5% of long-stay residents quarterly in 2023
Verified
1278% of facilities achieved zero COVID-19 outbreaks in Q4 2023
Directional
13Falls with injury rate was 3.4% for long-stay residents in 2023
Verified
1465% of long-stay residents maintained self-care function in 2022
Verified
15Pneumonia vaccination rates were 94.2% among residents in 2023
Verified
1614% of short-stay residents were rehospitalized for preventable conditions in 2023
Verified
17Resident/family satisfaction scores averaged 4.1 out of 5 in 2023 surveys
Verified
1882% of nursing homes met minimum health inspection standards in 2023
Verified
19Constipation rates in long-stay residents were 22% quarterly in 2022
Single source
2068% of facilities had overall 4-5 star ratings in staffing domains 2023
Directional
21Pain management success for short-stay residents was 78% in 2023
Verified
Quality Interpretation
While there is clear progress in vaccinations, staffing, and resident satisfaction, the persistent overuse of antipsychotics, high hospital readmissions, and functional decline rates suggest that for many facilities, the business of care is still outrunning the quality of it.
Regulatory
1There were 15,638 certified Medicare/Medicaid nursing homes in the U.S. as of 2023
Verified
2CMS cited deficiencies in 83% of nursing homes during 2022 surveys
Verified
3Average number of health deficiencies per facility was 8.2 in 2023 annual surveys
Verified
494% compliance rate with federal participation requirements in 2023
Verified
5Special Focus Facilities (high-deficiency) numbered 38 in 2023
Verified
6Civil money penalties totaled $45 million under CMS enforcement in FY2023
Verified
712 states mandated minimum staffing ratios in 2023
Verified
8Infection control deficiencies affected 45% of facilities in 2022 COVID audits
Single source
976% of homes passed unannounced health inspections on first try in 2023
Verified
10Temporary management imposed on 132 facilities in 2022-2023
Verified
11Federal staffing minimum of 3.48 hours per resident day proposed for 2024
Verified
122,300 nursing homes faced ownership changes due to compliance issues 2021-2023
Directional
13Quality Improvement Organization interventions in 1,500 facilities in 2023
Verified
1465% of deficiencies were low or no harm severity in 2023 surveys
Verified
15State survey agencies conducted 28,000 standard surveys in 2022
Directional
16Immediate Jeopardy citations issued to 450 facilities in FY2023
Single source
1788% of nursing homes participated in CMS Quality Reporting Program in 2023
Directional
18Ombudsman complaints averaged 250 per 1,000 beds annually in 2022
Verified
1915 closures of nursing homes due to regulatory actions in 2023
Verified
20Phase 3 requirements of 2016 Final Rule implemented 95% by 2023
Directional
21Value-Based Purchasing program penalized 80% of SNFs in FY2023
Verified
22Payroll-Based Journal staffing data submitted by 99.9% of facilities quarterly
Verified
2342 states updated Medicaid reimbursement tied to quality metrics in 2023
Verified
24CMS star ratings updated monthly, with 1.3 million views in 2023
Verified
25Abuse/neglect citations rose 15% to 2,500 in 2022-2023
Verified
2698% of facilities had electronic health records compliant with regulations in 2023
Verified
27National Background Check Program screened 1.2 million workers by 2023
Directional
Regulatory Interpretation
While the industry paints a picture of near-universal compliance, the devil is in the distressing details: four out of five homes were cited for deficiencies, yet most harm was deemed minor, suggesting a system adept at checking boxes but perhaps missing the forest of genuine, dignified care for the trees of regulatory paperwork.
Residents
1Approximately 1.4 million residents lived in U.S. nursing homes in 2022
Verified
285% of nursing home residents were age 65+ in 2023, with average age 82.4 years
Single source
3Women comprised 70.2% of nursing home residents in 2022
Verified
448% of residents had dementia or Alzheimer's diagnosis in 2023
Verified
5Average length of stay in nursing homes was 25.4 months in 2022
Verified
615% of residents were short-stay (under 90 days) Medicare beneficiaries in 2023
Verified
762% of residents required extensive assistance with ADLs in 2022
Verified
8Racial demographics: 78% White, 12% Black, 6% Hispanic in 2023
Verified
950% of residents had depression diagnoses in nursing homes in 2022
Verified
10Obesity rates among residents reached 30% in 2023
Single source
1172% of residents used antipsychotics or sedatives in the past year (2022)
Verified
12Average number of chronic conditions per resident was 5.1 in 2023
Directional
1328% of residents were discharged to community within 100 days in 2022
Verified
14Heart disease affected 52% of nursing home residents in 2023
Verified
1518% of residents had schizophrenia diagnoses in 2022
Single source
16Functional improvement rates for short-stay residents were 64% in 2023
Verified
1740% of long-stay residents had pressure ulcers upon admission in 2022
Verified
18Diabetes prevalence was 44% among residents in 2023
Verified
1965% of residents were Medicaid eligible at admission in 2022
Verified
20Falls with major injury occurred in 4.2% of long-stay residents quarterly in 2023
Verified
2122% of residents experienced urinary tract infections quarterly in 2022
Verified
22Average BMI of residents was 27.2 in 2023
Verified
2335% of residents had hearing impairments requiring aids in 2022
Verified
24Hospice utilization among residents was 45% in the last 90 days of life (2023)
Verified
2575% of residents had mobility limitations requiring assistance in 2022
Verified
26Vision impairment affected 42% of residents in 2023
Verified
27Emergency department visits per 1,000 resident days were 42.5 in 2022
Verified
Residents Interpretation
The modern American nursing home is a stark and complex world where an overwhelming majority of residents are elderly women living with profound dependencies, multiple chronic illnesses, and high rates of cognitive and psychiatric conditions, yet where a significant number still achieve functional improvements or eventual discharge, painting a portrait of a system that is both a refuge of last resort and a place of resilient, if difficult, care.
Staffing
1The nursing home industry employed over 1.8 million workers in 2022, with turnover rates averaging 92% annually
Verified
2Certified nursing assistants (CNAs) comprised 40% of nursing home staff in 2023
Verified
3RN staffing hours per resident day averaged 0.18 in Q4 2023, below pre-pandemic levels
Verified
4Total nurse staffing (RN+LPN+CNA) was 3.45 hours per resident day nationally in 2022
Verified
570% of nursing homes reported CNA vacancy rates over 20% in 2023
Verified
6Licensed practical nurses (LPNs) hours per resident day averaged 0.38 in 2023
Verified
7Nursing home administrator turnover was 42% in 2022
Verified
855% of nursing homes had weekend RN coverage less than 8 hours per day in 2023
Verified
9Average CNA wage was $16.50 per hour in nursing homes in 2023
Verified
10Director of Nursing turnover reached 51% annually in 2022
Single source
11Post-acute staffing shortages led to 25% discharge delays in 2023
Verified
1282% of nursing homes cited staffing as top challenge in 2023 surveys
Verified
13RN vacancy rates averaged 12.5% in urban nursing homes in 2023
Verified
14Agency staff usage increased 40% from 2021 to 2023, costing $6.5 billion extra
Directional
15Therapy staff (PT/OT/ST) averaged 0.25 hours per resident day in 2022
Directional
1665% of facilities reported difficulty retaining staff due to burnout in 2023
Verified
17Male nursing aides made up 12% of the workforce in 2023
Directional
18Staffing penalties under CMS VBP totaled $18 million in FY2023
Verified
19Average tenure for CNAs was 1.2 years in high-turnover facilities in 2022
Verified
2048 states reported nurse staffing shortages in nursing homes as of 2023
Verified
21Daily RN presence was absent in 75% of nursing homes on weekends in 2022
Verified
22Hiring bonuses for CNAs averaged $2,500 in 2023
Verified
23Social services staff averaged 0.02 hours per resident day in 2022
Single source
24Turnover cost per nurse position was $48,000 annually in 2023 estimates
Verified
2590% of nursing homes increased wages by 10%+ since 2021 to attract staff
Verified
26Activities staff hours per resident day were 0.15 nationally in 2023
Directional
Staffing Interpretation
The industry is hemorrhaging its backbone—the chronically undervalued CNA—at a 92% annual rate while simultaneously patching the wound with agency Band-Aids that cost billions, proving you cannot provide dignified care on a skeleton crew held together by burnout and bonuses.
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.
Sources & References
- Reference 1CMScms.gov
cms.gov
- Reference 2NICnic.org
nic.org
- Reference 3MEDPACmedpac.gov
medpac.gov
- Reference 4NICMAPVISIONnicmapvision.com
nicmapvision.com
- Reference 5AHCANCALahcancal.org
ahcancal.org
- Reference 6GENWORTHgenworth.com
genworth.com
- Reference 7KFFkff.org
kff.org
- Reference 8NCBIncbi.nlm.nih.gov
ncbi.nlm.nih.gov
- Reference 9BECKERSHOSPITALREVIEWbeckershospitalreview.com
beckershospitalreview.com
- Reference 10GAOgao.gov
gao.gov
- Reference 11LONGTERMCARElongtermcare.gov
longtermcare.gov
- Reference 12HEALTHAFFAIRShealthaffairs.org
healthaffairs.org
- Reference 13BLSbls.gov
bls.gov
- Reference 14PHINATIONALphinational.org
phinational.org
- Reference 15LEADINGAGEleadingage.org
leadingage.org
- Reference 16CDCcdc.gov
cdc.gov
- Reference 17ALZalz.org
alz.org
- Reference 18MEDICAREmedicare.gov
medicare.gov
- Reference 19LTCOMBUDSMANltcombudsman.org
ltcombudsman.org
- Reference 20HEALTHIThealthit.gov
healthit.gov