NAICS 623110 Quarterly Industry Report
Nursing Care Facilities
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 623110Sector: Health Care and Social Assistance (62)Updated: Q1 2026
About This Report
This industry profile for Nursing Care Facilities (NAICS 623110) draws on data from the U.S. Census Bureau[6], Centers for Medicare and Medicaid Services[8], Bureau of Labor Statistics[9], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, senior care analysts, and long-term care investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the nursing care facilities industry.
NAICS Sector
62
Health Care and Social Assistance
Industry Definition & Overview
Nursing Care Facilities (Skilled Nursing Facilities) (NAICS 623110) encompasses establishments primarily engaged in providing inpatient nursing and rehabilitative services for an extended period per the U.S. Census Bureau[5]. Facilities provide skilled nursing care, physical and occupational therapy, speech therapy, and long-term custodial care to residents who require ongoing medical supervision. This classification includes nursing homes, skilled nursing facilities, and convalescent care establishments with permanent nursing staff.
Roughly 21,710 facilities employ 1.63 million workers and generated $119.5 billion in revenue per Census Bureau[6] economic survey data. Brookdale Senior Living, Ensign Group, Sabra Health Care REIT, and Genesis Healthcare represent prominent operators and investors in the skilled nursing sector. Average facility size varies widely, with many facilities operating as single-location businesses owned by local operators.
Per the SBA Table of Size Standards[7], the size standard is $34 million in average annual receipts. Medicare reimburses SNFs under the Prospective Payment System using Resource usage Groups, with FY 2024 rates increasing 4 percent ($1.4 billion) per CMS[8]. Federal OBRA 1987 requirements mandate 24-hour licensed nursing services and a registered nurse on duty at least 8 consecutive hours daily. CMS repealed the 2024 minimum staffing standards (3.48 hours per resident day) in December 2025 following a federal district court ruling, reverting to OBRA-era staffing adequacy requirements. Minimum Data Set (MDS) assessments drive both payment classification and quality measurement. SNF Value-Based Purchasing adjusts payments based on quality scores, with Health Equity Adjustments rewarding high-performing facilities serving dual-eligible populations starting FY 2027. Occupancy rates remain below pre-pandemic levels, with home health care and outpatient rehabilitation competing for post-acute patients.
What's Included in This Industry
- Skilled nursing care and 24-hour medical supervision
- Post-acute rehabilitation therapy programs
- Long-term custodial care for chronic conditions
- Memory care and dementia treatment programs
- Wound care management and chronic disease monitoring
- Medication administration and pharmacy management
- Nutritional services and dietary program management
- Social work and discharge planning coordination
- Minimum Data Set assessment and care planning
- SNF quality reporting and Value-Based Purchasing compliance
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Health Care and Social Assistance | 62 |
| Subsector | Nursing and Residential Care Facilities | 623 |
| Industry Group | Nursing Care Facilities (Skilled Nursing Facilities) | 6231 |
| NAICS Industry | Nursing Care Facilities (Skilled Nursing Facilities) | 62311 |
| National Industry | Nursing Care Facilities (Skilled Nursing Facilities) | 623110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 622110 | General Medical and Surgical Hospitals | General Medical and Surgical Hospitals discharge patients to skilled nursing facilities for post-acute rehabilitation and recovery, with hospital readmission penalties creating financial incentives for effective SNF care that prevents return hospitalizations |
| 622310 | Specialty (except Psychiatric and Substance Abuse) Hospitals | Specialty Hospitals including rehabilitation facilities discharge patients to SNFs for continued skilled nursing oversight when patients no longer require intensive inpatient rehabilitation but still need 24-hour nursing supervision and therapy |
| 621610 | Home Health Care Services | Home Health Care Services compete with SNFs for post-acute patients by delivering skilled nursing and therapy in the home setting, with patient preference for home-based recovery and lower costs driving volume shifts away from institutional care |
| 623210 | Residential Intellectual and Developmental Disability Facilities | Residential Intellectual and Developmental Disability Facilities share the residential care model and face similar staffing, regulatory, and reimbursement challenges, with both facility types providing 24-hour supervised living environments for vulnerable populations |
| 623220 | Residential Mental Health and Substance Abuse Facilities | Residential Mental Health and Substance Abuse Facilities serve populations with co-occurring behavioral health and medical needs that may require skilled nursing facility placement when psychiatric conditions complicate chronic disease management |
| 624120 | Services for the Elderly and Persons with Disabilities | Services for the Elderly and Persons with Disabilities provide community-based alternatives to institutional SNF care, with adult day programs, home modification services, and personal care assistance supporting aging-in-place as competition to nursing facility admission |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 10.5% | 1,895 |
| 2 | Texas | 8.7% | 1,558 |
| 3 | Florida | 5.8% | 1,045 |
| 4 | Ohio | 5.1% | 924 |
| 5 | Illinois | 4.2% | 762 |
| 6 | New York | 4.1% | 743 |
| 7 | Pennsylvania | 3.8% | 689 |
| 8 | New Jersey | 3.1% | 550 |
| 9 | Missouri | 3.0% | 541 |
| 10 | Indiana | 2.9% | 512 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
504
Total SBA Loans
$541.6M
Total Loan Volume
$1.1M
Average Loan Size
16 yrs
Average Loan Term
9.96%
Average Interest Rate
12,528
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Nursing Care Facilities (NAICS 623110) has a size standard of $34 million in average annual receipts for federal contracting purposes. SBA lending programs[10] support facility acquisition, capital improvement, and operational expansion for qualifying skilled nursing facility operators. Eligible businesses can access SBA 7(a) loans[11] for working capital, equipment, and acquisition financing, while 504 loans[12] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Celtic Bank Corporation | 40 | $68.1M | $1.7M |
| 2 | Byline Bank | 16 | $67.2M | $4.2M |
| 3 | FinWise Bank | 8 | $40.0M | $5.0M |
| 4 | Readycap Lending, LLC | 24 | $34.4M | $1.4M |
| 5 | PCB Bank | 8 | $25.4M | $3.2M |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for nursing homes?
NAICS 623110 covers nursing care facilities and skilled nursing facilities providing inpatient nursing, rehabilitation, and long-term custodial care per the U.S. Census Bureau[5].
How large is the skilled nursing facility industry?
Roughly 21,710 facilities employ 1.63 million workers and generated $119.5 billion in revenue per Census Bureau[6] economic survey data, representing one of the largest healthcare industry segments.
What is the SBA size standard for nursing facilities?
The SBA size standard[7] is $34 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
What are current SNF staffing requirements?
Federal OBRA 1987 requirements mandate 24-hour licensed nursing and an RN on duty at least 8 consecutive hours daily per CMS[8] regulatory guidance. CMS repealed the 2024 minimum staffing standards (3.48 hours per resident day) in December 2025 following a federal court ruling.
How does Medicare reimburse skilled nursing facilities?
CMS[8] reimburses SNFs under the Prospective Payment System using Resource usage Groups based on Minimum Data Set assessments, with FY 2024 rates increasing 4 percent representing a $1.4 billion payment increase.
What is the SNF Value-Based Purchasing program?
SNF VBP adjusts Medicare payments based on quality performance scores per CMS[8] program guidelines, with Health Equity Adjustments rewarding high-performing facilities serving populations with 20 percent or more dual-eligible beneficiaries starting FY 2027.
How are SNF occupancy rates trending?
Occupancy rates remain below pre-pandemic levels per Bureau of Labor Statistics[9] industry data, with home health care and outpatient rehabilitation competing for post-acute patients and reducing traditional facility admission volume.
What is the Minimum Data Set assessment?
MDS is a standardized resident assessment covering clinical status, functional capabilities, cognitive patterns, and care needs per CMS[8] assessment requirements, with MDS data driving both Resource usage Group payment classification and quality measurement reporting.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]SBA Table of Size Standards sba.gov
- [8]CMS cms.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA lending programs sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
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