Aging buildings and repair costs are slowing nursing home expansion even as demand rises

What happened

Skilled Nursing News reported on October 20 that building repair and renovation costs are leading many nursing home investors and operators to pause expansion, despite rising demand for skilled nursing.

A vice president at Omega Healthcare Investors said the company wants to be sure a property is "sustainable" and asks whether the real estate is "future-proof." The article also cites economic uncertainty, the sector's public image and regulation as factors.

In a related October 19 report, Skilled Nursing News said nursing home operators support many ideas in a new Senate Finance Committee request for information on ownership transparency and oversight, while opposing a return of the repealed 2024 staffing rule.

What it means for families

If fewer new beds are built while the older population grows, families may find fewer openings, especially at short notice after a hospital stay.

Quick answers

Why are nursing home investors slowing expansion?

Skilled Nursing News reported on October 20 that building repair and renovation costs are leading many nursing home investors and operators to pause expansion, despite rising demand for skilled nursing.

Answers come from the reporting in Sources.

What to do this week

• If a parent may need nursing home care, make a short list of two or three homes now.
• Ask the hospital discharge planner early in any stay what post-hospital options exist.
• Check each home's inspection history on Care Compare before you need it.

Sources

• 'Future-proofing': Inside risk factors derailing nursing home expansion (Skilled Nursing News)
• 'Real common ground': Nursing homes support key LTC reform proposals while seeking adjustments (Skilled Nursing News)

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