Nursing Home Spending Grew by 6.9% in December, 9.6% Annually as Utilization Jumps

Skilled Nursing News March 11, 2025
Amy Stulick

Nursing home care spending grew by 6.9% year over year in December, with 62% of the increase due to increased utilization rather than price increases. Prices for the sector, meanwhile, increased 2.2% year over year, below the health care composite price index increase of 2.7%.

Initial data shows that nursing home care spending for the entirety of 2024 grew 9.6% compared to 2023, according to the February 2025 Health Sector Economic Indicators Briefs, published by Altarum.

Monthly national spending estimates for nursing home care was $189.5 billion in December 2021, Altarum found, and increased to $238.8 billion in December 2024.

Nursing and residential care facility employment combined exceeded prepandemic levels for the first time this year, adding 13,200 jobs in...

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