Skilled nursing occupancy continued to increase into late summer, but labor and admissions challenges will likely continue to curtail the sector's growth prospects, according to a new analysis from NIC Map Vision.
Occupancy rose 48 basis points from July to end the month of August at 78.8%, the highest occupancy rate since April 2020, said NIC's Bill Kaufmann. Occupancy is up 580 basis points from its January 2021 low of 73.0%, but COVID-19 continued to plague the sector well into last year, slowing initial momentum.
"As staffing, wage growth, and general inflation pressures persist, operations for many operators will be under pressure but the long-term demand for skilled nursing services is expected to grow over time," Kauffman said.
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