Shocking Surge in Nursing Home Shutdowns

Nursing home closures in 2024 reveal a growing crisis in long-term care access, straining families and healthcare systems nationwide.

Story Overview

2024 saw a surge in nursing home closures and downsizing, intensifying access issues.
Facilities were overwhelmed by labor shortages, rising costs, and reimbursement pressures.
Concurrent hospital closures compounded the crisis, affecting care transitions.
Industry experts warn of continued closures without policy intervention.

Escalating Nursing Home Closures in 2024

In 2024, the United States experienced a significant increase in nursing home closures and downsizing, exacerbating an already critical access shortage in long-term care. Facilities were forced to limit admissions, maintain waiting lists, and even close due to persistent labor shortages and rising operational costs. The American Health Care Association/National Center for Assisted Living (AHCA/NCAL) reported over 62,000 fewer beds and 774 closures since 2020, displacing thousands of residents and putting additional strain on hospitals and families seeking post-acute or custodial care.

These closures have not only displaced many residents but also created bottlenecks in hospital discharge processes. As hospitals faced service line reductions and full-facility closures in the same year, the demand for post-acute placements grew, yet the capacity remained constrained. This situation left families scrambling to find suitable care for their loved ones, often leading to prolonged hospital stays.

Impact of Hospital Closures on Long-Term Care

Hospital closures in 2024 further complicated the long-term care crisis. Several hospitals across the nation either reduced services or shut down entirely, disrupting local care pathways and exacerbating the challenge of discharging patients needing post-acute care. This trend has been partly attributed to ongoing financial pressures, including payment shortfalls and staffing costs, affecting both urban and rural communities.

The closure of hospitals has had a ripple effect on the nursing home sector, emphasizing the interconnectedness of healthcare services. With fewer discharge destinations available, the pressure on existing nursing homes to accommodate increased demand has intensified, often leading to longer wait times and reduced care quality.

Policy and Industry Responses

AHCA/NCAL has been vocal about the need for policy intervention to address the ongoing crisis. The association argues that federal staffing mandates, if not aligned with workforce realities, could lead to further displacement of residents. Industry experts suggest that without significant changes in reimbursement and staffing policies, closures will continue, particularly affecting small and rural facilities that lack the resources to weather financial pressures.

While there has been an accelerated shift towards ambulatory and home-based care models, many residents still require institutional settings for adequate care. The ongoing consolidation of services poses a risk of regional monopolies, potentially limiting patient choice and increasing costs. As the nation grapples with an aging population, the importance of maintaining and expanding long-term care capacity becomes even more imperative.