Industry Info and Thesis

Skilled Nursing Facility (SNF) Industry Overview

  • Demographic & Industry Dynamics

    Increasing Demand/Decreasing Supply

    – Rapidly increasing 85+ age demographic with nursing home needs

    – Decreasing supply of nursing home facilities and beds

    – SNFs provide high acuity care at price points well below hospitals

    – Regulatory barriers to entry (CONs) in most states

    Industry Dynamics

    – Highly fragmented control of 16,000 SNFs

    – Smaller operators tend to be inefficient on multiple levels

    – Increased reimbursement, regulatory & technological complexity pressures smaller and mid-size owner/operators to sell or grow

    – Few active buyers