# US nursing home capacity decline

> Live situation record from CLSTR: https://clstr.news/situations/us-nursing-home-capacity-decline
> Updated: 2026-10-15T13:40:07.000Z. Sources: 6. Developments: 2.

The United States is facing a decline in nursing home capacity, driven by a demographic shift as the oldest baby boomers reach age 80 and demand for long-term care increases. Between 2015 and 2025, nearly 1,000 certified facilities closed nationwide. Operators have identified insufficient Medicaid reimbursement rates and staffing shortages as primary drivers for these closures.

In New York, the shortage has resulted in the loss of over 3,000 licensed beds since 2020. As a consequence of the shrinking nursing home landscape, many older Americans are increasingly turning to home-based nursing services or assisted living facilities.

## Timeline

### 2026-10-15: US hospital financial aid and nursing home capacity trends

Patients often struggle to access hospital charity care due to complex applications. Meanwhile, US nursing home capacity is declining as facilities close due to staffing and funding challenges.

2 sources. https://clstr.news/cluster/us-hospital-financial-aid-and-nursing-home-capacity-trends

### 2026-09-23: United States nursing home capacity declines amid rising demand

U.S. nursing home capacity fell 5% between 2019 and 2024, creating shortages as baby boomers age. Industry leaders cite low Medicaid reimbursements and new CMS accountability models as key pressures.

5 sources. https://clstr.news/cluster/nursing-home-capacity-declines-amid-rising-demand

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Cite as: US nursing home capacity decline. CLSTR, https://clstr.news/situations/us-nursing-home-capacity-decline