DataPoint: Nursing Home Margins

Based on a LeadingAge NY analysis of 2018 Residential Health Care Facility (RHCF) Cost Reports received from the Department of Health (DOH), the statewide median operating margin for nursing homes was 1.6 percent in 2018, down from 2.05 percent in 2016. Operating margin is a measure of profitability used to determine financial risk. Statewide, 38.1 percent of homes operated with a negative operating margin during 2018. The percentage of homes operating with a negative operating margin was higher among voluntary homes, with nearly 60 percent reporting losses. The median operating margin for voluntary homes was -1.4 percent, while proprietary homes reported a median operating margin of 2.8 percent. Negative margins were found in 85.7 percent of public homes and 26.3 percent of proprietary homes.

Contact: Ken Allison, kallison@leadingageny.org, 518-867-8820