Nursing care bed supply continues decline nationwide

In the largest 31 metropolitan markets, the supply of operational nursing care beds has been declining an average of 0.3% annually during the past five years. This phenomenon is the result of both the closing of properties as well as a shift from semi-private to private rooms.

Properties that are renovating semi-private rooms into private rooms may not necessarily be decreasing their number of licensed beds. With the conversion to private rooms, however, the operational bed supply of those properties does decline. While the decline in supply is a nationwide trend, there are exceptions at the metropolitan market level.

In the past year, 11 of the largest 31 metropolitan markets had increases in the nursing care bed supply. Many of these markets were concentrated in Florida, Ohio, and Texas. The largest increase in supply during 2010 was seen in Phoenix, where the nursing care bed supply grew by 2.6%. Dallas had an increase in supply during 2010 similar to Phoenix, at 2.5%.

On the other end of the spectrum, there are metropolitan markets that are seeing significant reductions in their nursing care bed inventory. Detroit and Seattle both saw their respective nursing care bed inventory decline by 2.1% during 2010.

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