A review by a major US accounting firm, Marcum, has shown the US nursing home sector stands at a "pivotal moment", emerging from the difficulties of the pandemic, but facing rising costs, home closures, and a tighter regulatory environment.

The report finds aged care home occupancy rates rose 5.33% in 2022, suggesting a potential recovery in the sector. However, staffing costs have soared, intensifying financial strains on facilities.

Net costs per patient per day for aged care homes rose 16.78% in 2022, reflecting the economic pressures on the sector.

There was also a decline in the number of aged care homes, which could indicate future challenges for older people accessing care (see chart above).

There was a nationwide increase in the average hourly wage for aged care staff by 15.71% between 2020 and 2022.

"We stand at a pivotal moment in the history of long-term care," said Matthew Bavolack, national leader of Marcum's Healthcare Services practice. 

"Our analysis reveals the undeniable perseverance of the nursing home industry amidst trying times and the formidable challenges ahead.

"As we navigate the intricate balance between regulatory requirements and the financial realities of care delivery, the priority remains to ensure the highest quality of care for our aging population."

You can download the report here.