America


Nursing Homes on Life Support


Aging population and spiraling costs create major crisis.


R BY DAVID A. PATTEN


ising costs, an aging population, and a lack of qualified caregivers are forcing long-term care


facilities and nursing homes to shut- ter their doors nationwide. Experts warn the industry may


be teetering on the verge of a full- blown crisis. Others insist the crisis is already here. “Nursing homes are key to the


local communities and to the health- care continuum,” says Holly Har- mon, senior vice president at the American Health Care Association/


8 NEWSMAX | JUNE 2025


National Center for Assisted Living (AHCA/NCAL). “Each nursing home that has to


close has a significant detrimental impact on the community at large.” According to the KFF.org health


policy think tank, the number of nursing homes in the U.S. has declined every year since 2017. Despite the growing need amid


a rapidly aging U.S. population — according to the Census Bureau, America’s over-80 population will jump to 18.8 million in just the next five years, an increase of over 4 million — the American Health Care Association reports that 868 nursing homes have shut their doors in the past five years.


Among the factors driving


those closures, experts say: Labor-intensive diseases.


Elders suffering from Alzheim- er’s and other forms of demen- tia require more frequent care- giver assistance. Alzheimer’s, which currently affects about 6.7 million Americans, is pro- jected to double over the next three decades. Spiraling costs. Labor costs,


regulatory expenses, insurance pre- miums, and facility costs have all jumped significantly. Compensa- tion, meanwhile, has lagged. Low Medicaid reimbursements. Although Medicaid covers over 60% of all nursing home residents, reim- bursement rates only cover between 70% to 80% of the costs of care. Nursing homes say they need more substantial and stable revenues.


NURSING HOMES NEED


INTENSIVE CARE Despite the nation’s graying demographics, the number of certified nursing home facilities has declined every year since 2017. Unless that trend is reversed soon, industry experts warn elders could face dificulty getting the long-term care they need.


Year Number of U.S. Nursing Homes 2017 2018 2019 2020 2021 2022 2023 2024


15,670 15,609 15,523 15,397 15,291 15,183 15,003 14,827


SOURCE: KFF.org, KFF State Health Facts


©ISTOCK


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