Investment Thesis Report: Skilled Nursing Facilities

A SNF is a healthcare institution that delivers medically necessary skilled nursing care and rehabilitation services to patients following a qualifying hospital stay (Centers for Medicare & Medicaid Services [CMS], 2024). These facilities primarily provide short-term, intensive care for individuals recovering from illness, injury, or surgery, typically after being hospitalized for at least three consecutive days. With the passage of Medicare and Medicaid in 1965, the U.S. government formalized funding for SNFs, establishing federal standards for participation. This further accelerated the development of skilled nursing care as an essential component of post-acute care. As hospital stays became shorter due to cost-control measures and medical advancements, the demand for intermediate care settings surged. SNFs became a critical part of the continuum of care, providing rehabilitation, skilled nursing, and therapy services to patients recovering from surgery, strokes, and other serious conditions

Thanks to Maria Luruena Marquez for authoring this overview of the SNF market.

Click here for a direct link to the investment thesis report (PDF).