Nursing Care Facilities (Skilled Nursing Facilities) — Business Survival Rate

An estimated 68% of nursing care facilities (skilled nursing facilities) businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 7.3%.

68%
5-Year Survival Rate
+3.4%
Net Growth Rate
9,802
Total Firms
668
Annual Firm Deaths

Is Nursing Care Facilities a Good Business to Start?

With a 68% five-year survival rate, nursing care facilities (skilled nursing facilities) has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 7.3% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)9.0%
Exit Rate (closures)7.3%

Net positive: more businesses opening than closing (+1.7 pp spread).

Job Creation & Destruction

13.9%
Job Creation Rate
10.5%
Job Destruction Rate
+3.4%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 1,420,726 workers across 9,802 firms.

Want to know how much nursing care facilities (skilled nursing facilities) businesses actually make?

See full revenue benchmarks for Nursing Care Facilities (Skilled Nursing Facilities) →

Frequently Asked Questions

What percentage of nursing care facilities (skilled nursing facilities) businesses fail?
Approximately 32% of nursing care facilities (skilled nursing facilities) businesses fail within their first 5 years. The annual closure rate is 7.3%, with 668 firms closing permanently in 2023.
Is the nursing care facilities (skilled nursing facilities) industry growing or shrinking?
The nursing care facilities (skilled nursing facilities) industry is currently growing with a net job creation rate of +3.4% per year. New businesses are entering at 9.0% while 7.3% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.