NAICS 6231

Nursing Care Facilities (Skilled Nursing Facilities)

Learn about skilled nursing care facilities (NAICS 6231): inpatient nursing care, rehabilitation services, and medical supervision for post-acute and chronic care patients.

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 6231 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
1.4M
US Census CBP · 2023 · NAICS 2017
Establishments
18K
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$63.5B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$44,479
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$135.4B
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

Nursing care facilities, classified under NAICS 6231, provide skilled nursing care and related services to patients requiring medical supervision and rehabilitation following hospitalization or for chronic conditions. These facilities employ licensed nurses, therapists, and support staff to deliver 24-hour care including wound management, medication administration, physical and occupational therapy, and assistance with activities of daily living. Skilled nursing facilities (SNFs) serve as a critical bridge in the healthcare continuum, enabling patients to transition from acute hospital settings to home-based care while managing complex medical needs and facilitating recovery through structured rehabilitation programs.

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Market sizing, workforce analysis, competitive landscape, regulatory environment — all sourced from Census, BLS, FRED, and SEC EDGAR.

Industry Trends

01

Increased focus on reducing hospital readmissions and improving quality metrics, driven by value-based payment models and regulatory requirements that tie reimbursement to clinical outcomes.

02

Growing adoption of electronic health records and health information technology to improve care coordination, reduce medication errors, and enhance data analytics capabilities.

03

Expansion of specialized service lines including cardiac rehabilitation, stroke recovery, wound care, and post-surgical recovery programs to differentiate facilities and attract higher-acuity patients.

04

Rising labor costs and workforce shortages driving investment in staffing models, employee retention programs, and recruitment of international nurses to maintain adequate care delivery capacity.

CMS

Increased regulatory scrutiny and compliance demands related to infection control, staffing ratios, quality reporting, and data security, particularly in response to pandemic experiences and evolving CMS requirements.

Available Reports

1 industry report available for purchase under Nursing Care Facilities (Skilled Nursing Facilities).

Specialty Reports Available on Request

1 specialty industriesavailable on request
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Industries

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Frequently Asked Questions

What is NAICS 6231? ▾
NAICS 6231 is the classification for skilled nursing care facilities that provide inpatient nursing care and related services. These facilities offer 24-hour medical supervision, rehabilitation services, and assistance with daily activities for patients recovering from illness or hospitalization, managing chronic conditions, or requiring ongoing medical management.
How do skilled nursing facilities differ from assisted living facilities? ▾
Skilled nursing facilities provide higher levels of medical care with licensed nurses and doctors available 24/7, serving patients with complex medical needs requiring intensive monitoring and skilled interventions. Assisted living facilities offer more independent living arrangements with help for daily activities but less medical supervision. SNFs typically accept patients directly from hospitals, while assisted living serves primarily independent seniors.
What are the primary revenue sources for skilled nursing facilities? ▾
SNFs generate revenue primarily through Medicare (for post-acute care), Medicaid (for long-term care), and private pay insurance. Medicare reimbursement is based on prospective payment systems using Resource Utilization Groups, while Medicaid rates vary significantly by state. Private pay rates charged directly to families or long-term care insurance typically represent a smaller revenue portion but provide higher margins.
What regulatory bodies oversee skilled nursing facilities? ▾
Skilled nursing facilities are regulated by the Centers for Medicare and Medicaid Services (CMS), state health departments, and state survey agencies that conduct inspections and enforce compliance with federal and state regulations. Facilities must maintain specific staffing ratios, quality standards, infection control protocols, and reporting requirements to maintain licensure and continued participation in Medicare and Medicaid programs.
How has technology transformed skilled nursing facility operations? ▾
Electronic health records, telehealth capabilities, and clinical decision support systems have improved care coordination and quality tracking. Facilities increasingly use technology for resident monitoring, medication management, therapy delivery, and real-time communication with hospitalists and specialists, enabling more efficient care delivery and reducing adverse events.

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