The skilled nursing industry is entering 2025 with a mix of optimism and challenges. While leaders express confidence in increasing occupancy rates, the persistent struggle to recruit and retain staff remains a critical issue. These two factors will heavily influence the operational and financial success of skilled nursing facilities (SNFs) in the coming year.
Rising Occupancy Rates: A Positive Outlook
Industry leaders are optimistic about occupancy growth in skilled nursing and post-acute rehabilitation. Over 50% of respondents to the Skilled Nursing Outlook 2024 survey expect occupancy rates to rise this year.
This optimism stems from ongoing efforts to improve care quality and adapt to the evolving needs of patients, as well as demographic trends that point to a growing elderly population requiring skilled care. By 2030, it is projected that one in five Americans will be 65 or older, with a significant portion requiring skilled nursing care, according to the U.S. Census Bureau.
Recruitment and Retention: The Pressing Challenge
Despite the positive outlook for occupancy, workforce challenges cast a shadow over the industry. The survey revealed that recruitment and retention are the top concerns for the majority of respondents. High turnover rates and staffing shortages continue to strain facilities, impacting their ability to deliver consistent, high-quality care.
Jen Gross, Post-Acute Informatics Specialist at Net Health, highlighted the importance of strategic workforce deployment. “Ensuring that staff are used effectively in high-acuity areas is critical,” she noted. Facilities must not only attract new talent but also create environments that encourage long-term employee retention through competitive compensation, career development opportunities, and supportive work cultures.
Balancing Optimism with Realities
While leaders remain bullish on occupancy growth, they are keenly aware of the challenges ahead. Addressing workforce shortages will require innovative solutions, including partnerships with educational institutions to build a robust talent pipeline and offering scholarships or apprenticeships to attract younger workers into the field. Additionally, technological advancements like predictive analytics can play a crucial role in optimizing staffing levels and improving employee satisfaction.
According to recent statistics, the majority of skilled nursing facilities reported a turnover rate exceeding 40% in 2023, underscoring the urgent need for retention strategies. These include offering competitive compensation packages, implementing mentorship programs, and creating a supportive work culture to retain experienced staff and reduce burnout.
Conclusion
The skilled nursing sector in 2025 is marked by a dual narrative: optimism about occupancy growth and the pressing need to solve staffing challenges. Leaders who can effectively balance these dynamics will be better positioned to thrive in the evolving landscape of skilled nursing care.
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