In this article, we will be taking a look at the 30 cities with high quality nursing homes in the US. If you do not want to learn about the growth trends in the US nursing care market, head straight to the 5 Cities With High Quality Nursing Homes in the US.
Driving Forces and Growth Trends in the U.S. Nursing Care Market
The nursing care market in the United States has been growing and is expected to reach $692.19 billion by 2029 at a CAGR of 6.47% during the forecast period of 2023-29. The market size stands at $475.15 billion as of 2023. The aging population and the prevalence of chronic diseases are the main factors that have been driving the U.S. nursing care industry. Out of the entire population, about 54 million people are 65 years of age or older (16.5% of the total) and have been facing high risks of chronic illnesses like diabetes, Alzheimer’s, cancer, and heart problem which increases the need for special nursing care.
Moreover, according to the Centers for Medicare and Medicaid Services (CMS), the national healthcare spending in the United States is expected to increase by an at least of 5.5% per year between 2018 and 2027, reaching $6.0 trillion by 2027. Also, according to Genworth Financial Cost of Care Survey, the average annual cost of a private room in a nursing home in the US stood at $108,405 in 2021.
The Centers for Disease Control and Prevention (CDC) claimed in 2018 that 15,600 for-profit facilities with 1.7 million beds make up the largest nursing home sector in the United States. With an average of 85 residents per day as opposed to 32 residents per day in residential care facilities and 65 participants per day in adult daycare centers, these facilities provide services to more than twice as many individuals as residential care institutions.
Future of Nursing Homes: Challenges, Opportunities, and Key Players
Nursing homes suffered greatly during and post COVID-19 epidemic, becoming tragic locations of infection and death. The increase in labor expenditures from 8% to 18% put a pressure on already tight budgets. However, the true cost was expressed in terms of lives lost—nearly 133,000 of them included both citizens and devoted employees. Nursing professor Jasmine Travers of NYU, who is also very sympathetic, described the destruction as a “9/11 moment for nursing homes.”
According to WHO, one-fifth of the world’s population will be over 60 by 2050 which drives up the demand for nursing homes. The market for long-term care facilities in the US alone was estimated to be $175.9 billion in 2021 and is expected to expand at a CAGR of 3.2%, reaching $232.5 billion by 2030. Similarly, the global market for nursing homes which was valued at $284.5 billion in 2020, is expected to increase by 4.8% per year between 2021 and 2027, reaching $345 billion by 2027.
On the other hand, if we talk about companies that are actively working on establishing the US nursing home industry, companies like The Ensign Group, Inc. (NASDAQ:ENSG), Sabra Healthcare REIT, Inc. (NASDAQ:SBRA), and Healthcare Services Group, Inc. (NASDAQ: HCSG) stand out, among others.
The Ensign Group, Inc. (NASDAQ: ENSG) is a major player in the healthcare sector, managing 299 institutions including rehab centers, senior living communities, and nursing homes over 14 states. Their revenue increased by 23% in 2023, reaching $3.73 billion, and their adjusted earnings per share increased by 15%, reaching $4.77. The Ensign Group, Inc. (NASDAQ: ENSG) anticipate even higher results in 2024, estimating $5.29 to $5.47 in earnings per share on $4.13-4.17 billion in sales, or an annual growth rate of almost 11%. Since 2022, they have also gone on a bit of an acquisition binge, acquiring 54 facilities, mainly in strategic locations like Arizona, Texas, and South Carolina. They might even become the largest operator of nursing homes in the country as a result of this. Additionally, they have strategically spun off their real estate and other businesses into distinct entities like CareTrust REIT Inc. and The Pennant Group to increase value and focus.
Similarly, Sabra Healthcare REIT, Inc. (NASDAQ: SBRA) is also a prominent player in the real estate investment market which specializes in healthcare buildings, including assisted living communities, senior housing complexes, and behavioral health institutions, in both the United States and Canada. Sabra Healthcare REIT, Inc. (NASDAQ: SBRA) has been very active lately, renovating a residential treatment facility in South Carolina and adding Recovery Centers of America to their portfolio. Sabra’s enterprise value is estimated at $5.7 billion. Sabra Healthcare REIT, Inc. (NASDAQ: SBRA)’s portfolio comprises two mortgages and 17 mental health assets, with a combined investment worth of over $800 million. They reported $625 million in revenue in 2023.
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Our Methodology
We’ve ranked the cities with high-quality nursing homes in the US based on multiple metrics. We assessed the number of beds, health professionals, Insurance, and treatment expenses and assigned rankings to each city based on all these factors. Then we averaged the rankings and assigned scores based on the average rankings. The top city got a score of 1 (30/30 = 1), the 2nd city got a score of 0.96 (29/30 = 0.96), and so on.
Here is our list of the 30 cities with high-quality nursing homes in the US.
30. Aurora, Colorado
Insider Monkey Score: 0.03
one of the America’s best nursing home care is available in Aurora, Colorado, but it is a little more expensive because of the city’s above-average cost of living. For instance, St. Andrew’s Village charges more than $7,500 a month for specialty treatments including memory care and rehabilitation. The main payers for short-term and long-term care, are Medicare and Medicaid. Out-of-pocket and private insurance choices are also available.
29. Orlando, Florida
Insider Monkey Score: 0.06
The cost of a nursing home in Orlando, Florida is more than the state average; a semi-private room typically costs $9,125 per month, while a private room costs more than $10,000. Medicaid helps pay for accommodation, board, and medical care in nursing homes, covering roughly 23.2% of Florida’s senior population. There are enough of nursing facilities in Florida to provide the approximately 86,000 beds that the state’s 72,161 seniors require, with an occupancy rate of 85%.
28. Jacksonville, Florida
Insider Monkey Score: 0.1
The nursing homes in Jacksonville, Florida are accommodating a total of 71,622 people indicating the growing need of nursing care is due to the rise in state’s elderly population. Medicare provides only 20 days of full coverage and 80 days of 80% coverage beyond that. Most importantly, individuals or families are on their own for any payments that exceeds 100 days
27. Rochester, New York
Insider Monkey Score: 0.13
Due to 15 years of static Medicaid rates, nursing facilities in Rochester, New York are in financial distress with each person suffering a daily shortage of $110. Over 6,700 beds in the state are unavailable because of personnel shortages. Rochester’s average daily cost of nursing home care is $308, which is more than Central New York’s $264. The situation has been made worse by the fact that Medicaid only covers roughly 75% of resident days and that payment rates haven’t kept up with growing costs.
26. Jamaica, New York
Insider Monkey Score: 0.16
With 226 beds and a non-profit status, the Jamaica Hospital Nursing Home in Jamaica, New York, is notable for its exceptional performance in both long-term care and short-term rehabilitation and stands among the cities with high quality nursing homes in the US. It’s a feasible choice for many as Medicare pays for up to 100 days of short-term rehabilitation following hospital stays. Strong performance indicators that demonstrate the quality of its care include a 57% return-home rate following discharge and low rates of hospitalization due to falls and infections.
25. Brooklyn, New York
Insider Monkey Score: 0.2
Nursing care in Brooklyn, New York, hold a reputation for providing excellent care. The daily expenses reported by the New York Department of Financial Services range from $340 to $390 which translates to an average of $124,100 to $142,350 per year.
24. Casper, Wyoming
Insider Monkey Score: 0.23
While prices in Casper, Wyoming, for nursing homes are often more than the state average, the facilities provide one of the best care in the state. Medicaid usually pays for 83% of costs plus additional payments; however, recent cost hikes have reduced coverage to 65–72%. Casper’s semi-private room costs $8,867 a month, which is marginally more than the state average of $6,996. Essential services are offered by individual facilities such as the Casper Mountain Rehab and Care Center and the Life Care Center of Casper, the former of which has 120 licensed beds.
23. Tucson, Arizona
Insider Monkey Score: 0.26
Some of the best nursing facilities in the country, like Cascades of Tucson and Woodland Palms Memory Care Community, are located in Tucson, Arizona, and provide both skilled nursing and rehabilitative services. The average monthly cost of nursing homes is about $6,601, which is a little more than the $6,540 state average. The city has a substantial senior population—about 19.8% of its 548,574 citizens are 65 years of age or older—so the need for long-term care services is still high.
22. Glendale, Arizona
Insider Monkey Score: 0.3
Compared to state and national norms, Glendale, Arizona, offers seniors cheaper options for reputable nursing facilities, with monthly costs averaging $3,975, Which makes Glendale stand among the cities with high quality nursing homes in the US. Since 15% of people under 65 do not have health insurance, many seniors probably pay for nursing home expenditures through Medicare, Medicaid, or other insurance.
21. Houston, Texas
Insider Monkey Score: 0.33
The nursing home sector in Houston, Texas provides services to a sizable elderly population. Nursing care can be somewhat costly, with an average monthly cost of $7,130—a 6.3% premium over the national average. The state’s nursing home occupancy rates fell from 72.8% to 62.7% in 2020 as a result of the COVID-19 epidemic, which also affected Houston which emphasizes how crucial it is to take industry dynamics into account when analyzing pandemic implications.
20. Dallas, Texas
Insider Monkey Score: 0.36
Seniors living in Dallas, Texas, have access to reasonably priced and superior nursing homes. These prices are significantly less than the national average, with a typical yearly cost of $56,940 for a semi-private room and $78,475 for a private room. With more than 93,000 residents as of 2014, Texas has the third-highest number of nursing homes in the US. More than 60% of Texans over 50 support increasing money for long-term care, and over 70% support paying nursing home employees more.
19. Rapid City, South Dakota
Insider Monkey Score: 0.4
A deliberate effort has been made in Rapid City, South Dakota, to satisfy the increasing need for nursing home care. To better serve the community, organizations like Golden Living and the Good Samaritan Society have stepped in to provide beds as a result of initiatives like requests for proposals.
18. Fargo, North Dakota
Insider Monkey Score: 0.43
Superior care facilities can be found in Fargo, North Dakota, although their costs are marginally more than the state average. In Fargo, a semi-private room costs, on average, $11,693 per month; the highest monthly cost for a private room in the state is $13,155. Though they come at a high cost, Fargo’s assisted living facilities offer superior care and services; nine of them employ over 1,000 people and bring in $75 million a year, making Fargo stand among the cities with high quality nursing homes in the US.
17. Bismarck, North Dakota
Insider Monkey Score: 0.46
Seniors in Bismarck, North Dakota pay almost $10,646 every month for a semi-private nursing home room. With 74,100 residents, 17.3% of whom are seniors, are driving the demand for nursing care facilities. Costs are further increased by a shortage of healthcare professionals, mainly nurses.
16. Cheyenne, Wyoming
Insider Monkey Score: 0.5
When considering other parts of the state, Cheyenne’s nursing home rates are quite low; a semi-private room typically costs $8,783 per month, while a private room costs $9,726. Residents frequently depend on government programs like Medicare and Medicaid to pay for these costs, and the sector is greatly aided by them.
15. Sioux Falls, South Dakota
Insider Monkey Score: 0.53
Sioux Falls stands fifteenth among the cities with high-quality nursing homes in the US. A semi-private room typically costs $7,650 per month. Medicaid is essential for low-income people because it pays for over 132,000 South Dakotans’ nursing home costs, which include lodging, healthcare, and counseling. The largest company in the area, Jenkins Living Center, employs 359 people and generates $13.1 million in revenue.
14. Grand Rapids, Michigan
Insider Monkey Score: 0.56
Grand Rapids, Michigan, is home to some of the best nursing facilities in the state, including St. Ann’s Home, Porter Hills Health Center, Beacon Hill at Eastgate, and Spectrum Health Rehabilitation and Nursing Centers. The average monthly cost of assisted living is $4,696, with projections of $5,057 in 2024. Monthly charges for memory care are $6,633 and for independent living, $3,039.
13. Miami, Florida
Insider Monkey Score: 0.6
The average monthly cost of nursing home care in Miami, Florida is $9,095 for a semi-private room. Approximately 23.2% of Florida’s senior population is supported by the approximately 5 million people who are enrolled in Medicaid. With more than 600 registered nursing homes and 72,161 seniors residing there, Florida has an occupancy rate of almost 85%.
12. Overland Park, Kansas
Insider Monkey Score: 0.63
Overland Park’s average monthly cost of assisted living is $4,333, which is less than both the state and national averages. Approximately 6.2% of residents under 65 lack health insurance which suggests that many seniors likely rely on Medicare, Medicaid, or other health insurances to help them pay off their nursing home expenses.
11. Springfield, OH
Insider Monkey Score: 0.66
The median daily cost of a semi-private room at a nursing home in Springfield, Ohio is $224, which is marginally less than the $235 national average. Prices range from $201 to $263 per day, with the highest rate estimated to cost approximately $95,995 yearly. Ohio’s nursing home expenses are predicted to increase by 7% throughout the following five years. Medicare pays for half of the costs for days 21–100 in a skilled nursing facility and covers the first 20 days of care.
10. Honolulu, HI
Insider Monkey Score: 0.7
Nursing home care expenses in Honolulu, Hawaii, are significantly more than the national average; a semi-private room typically costs $11,543 a month, which is 49% more than the national average. Medicare pays for skilled nursing stays that are up to 100 days in length, whereas Medicaid, with stringent qualifying requirements, serves as the main payer for longer-term inpatient care.
9. Glendale, CA
Insider Monkey Score: 0.73
In Glendale, California, senior living options cater to various budgets, from independent cottages to skilled nursing apartments. Assisted living averages $4,500 monthly, exceeding the national average. Top-rated nursing homes like Glen Park at Glendale, Windsor, and Twelve Oaks offer specialized care specifically tailored to seniors’ needs that ranges from memory impairment support to all-inclusive living arrangements.
8. Colorado Springs, Colorado
Insider Monkey Score: 0.76
High-quality care is provided by Colorado Springs’ nursing facilities, while the cost is marginally more than the national average. Monthly averages for semi-private rooms are $8,669 and private rooms are $9,414, depending on the facility and level of care required.
7. Topeka, Kansas
Insider Monkey Score: 0.8
The expense of a nursing home is often lower in Topeka, Kansas. Semi-private room costs an average of $212 per day, $23 less than the state median, for a median yearly cost of $77,362. There are five nursing facilities in the Topeka metro area, with Mission Village Living Center and Topeka Lutheran Home Association being the largest and earning the most money. Nevertheless, smaller businesses have difficulties; their share of total revenue is only 5.1%.
6. Evansville, IN
Insider Monkey Score: 0.83
The average monthly cost of assisted living in Evansville, Indiana, is $3,250 to $5,255, depending on the facility, which is comparable to the state average. Usually, memory care services raise these costs by 20% to 30%. The average hourly charge for in-home care is $25; the cost of home health care services is somewhat higher.
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Disclosure. None: The 30 Cities With High Quality Nursing Homes in the US is originally published on Insider Monkey.