Senior living operators can look forward to growth in the coming years, largely at the expense of their skilled-care competitors. So suggests a new report that sizes up the seniors housing and care sector.
Several advantages will facilitate senior living’s continued growth. These include lower relative costs, more tailored care and services, and greater resident autonomy, according to the latest edition of “Elder Care Services in the US by Service, Provider, Payment Source and Region.”
To be sure, skilled nursing will remain the largest player in the elder care service segment. But nursing home gains will be below the market average.
Total revenue for eldercare-related services will top $388 billion by 2021, the authors predict. They cite well-established growth drivers as continuing catalysts: a rapidly aging population, greater service demands, higher care costs and an increased willingness among older people to pay for services that let them age in place.
The report also predicts that individuals will be responsible for more of their care costs in the coming years, as government funding sources decline. Out-of-pocket expenses will largely fill the growing void, along with private insurance to a lesser extent, the authors predict. The full report, which was produced by The Freedonia Group, an international business research company, is available for purchase.