Kindred Healthcare Competition
Now Viewing Kindred Healthcare's competition in: Nursing Homes and Assisted Living (primary)
Recent Developments
Compliance Guidelines Increase for Nursing Homes - After a report by the Health and Human Services Inspector General that found that 91 percent of all US nursing homes provided deficient care, the industry has stepped up efforts to improve quality. Compliance guidelines have been created dealing with a number of issues including staffing, resident care, and medication management. The most commonly found deficiencies dealt with quality-of-life issues. Rhode Island was found to have the lowest percentage of nursing home deficiencies at 76 percent, while the District of Columbia, Alaska, Idaho, and Wyoming all had numerous deficiencies.
Association Disputes Nursing Home Deficiency Report - The American Health Care Association says that the recent Department of Health and Human Services report on nursing home quality is flawed. The group wants revised procedures to make results more objective, and is introducing an educational program to help members implement compliance programs. The group says that the industry's poor performance was more a function of low staffing and wages than poor quality.
Nursing Home Quality Initiative Continues - A quality initiative for American nursing homes begins its third year supporting improvement in nursing homes. The program, which began in 2006, is embraced by a coalition including long-term care providers, caregivers, medical improvement experts, and government agencies. More than 45 percent of the nation's nursing homes have entered the program, and have made progress in controlling pain and reducing the use of physical restraints.
Competitive Landscape
Demand for nursing care is linked to the demographics of the US population. The profitability of individual nursing facilities depends on efficient operations, as revenue per patient is largely controlled by the big government insurance programs, Medicare, and Medicaid. Large companies have some economies of scale in administration and purchasing, but small operators can compete effectively by offering better service. The industry is highly labor-intensive: annual revenue per worker is less than $45,000.
Full Industry Overview For Nursing Homes and Assisted Living
Nursing Homes and Assisted Living Industry Forecast
from Hoover's/D&B subsidiary First Research
US personal consumption expenditures on nursing homes are forecast to grow at an annual compounded rate of 7.1 percent between 2008 and 2013.
Strong and Steady Consumer Spending Growth for Nursing Homes
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Fewer seniors live with children
- Efficient use of labor required
- Risk: Insurers limit payments
Industries Where Kindred Healthcare Competes
- Health Care
- Health Care Services
- Long-Term Care Facilities (primary)
- Hospitals
- Specialized Health Care Services
- Health Care Services
