It is no secret that the COVID-19 pandemic wreaked havoc on the nursing home industry. In terms of the industry itself, we are seeing more closures of nursing homes, more consolidation, and the evaporation of the not-for-profit sector of nursing services. More of these non-profits are being swallowed up by for-profit providers.

What happened? There are a number of factors here. Firstly, many nursing homes across the country appeared unprepared for the extensive infection-control measures required during the pandemic. This resulted in some nursing homes becoming COVID hot spots and losing many patients and some of their workers to the virus. Lawsuits were filed and, depending on what state you reside in and when the death or injury occurred, the lawsuits were deemed meritorious. While the states moved to protect the healthcare industry from COVID-19 lawsuits, many of the lawsuits filed by the families of descendants were able to allege gross negligence to prevent the agency from claiming COVID-19 immunity.

Nursing Home Closures by the Numbers

Since the pandemic began in 2020, 327 nursing homes have closed across the country. Many of these closures were the result of state investigations into the quality of care during the pandemic while others were the result of economic distress. In many cases, vulnerable nursing home workers were prevented from working due to fears concerning the virus. This has and will continue to cause understaffing problems.

We are only five months into 2022, and already 20 nursing homes have shut down. That number could balloon to over 400 after the year is up.

Industry-Wide Trends

The current trend is away from skilled nursing facilities and toward assisted living facilities or post-retirement care centers that provide limited medical services. Nursing homes are further divided into custodial care facilities and temporary rehabilitation centers. The number of skilled nursing facilities has gone down on the West Coast and the trend is now rippling across the East Coast, as well.

Profitability in the sector, especially in California, which has a robust regulatory framework and expansive regulations when it comes to building large structures due to earthquake concerns, is now at an all-time low. This is forcing the industry to make several changes that will have broadscale consequences across the U.S. When you add in lawsuits related to nursing home care and expanded liability under federal law, the entire sector may be in serious trouble.

This is especially true for non-profits that do not have corporate backing and generally rely on government funding, donations, and reimbursements. As the funding for these types of non-profits drys up, the non-profits are exploring their options by consolidating with large corporations who can provide the backing they need to remain open.

Talk to a Business and Corporations Attorney Today

Carbon Law Group provides business transactional legal services to businesses in healthcare, home care aide, tech, non-profits, and more. Call to discuss your needs with a Los Angeles corporate attorney today.

We are located in.

Carbon Law Group, APLC

1001 Wilshire Blvd. Suite 100 #3200

Los Angeles, CA 90017

Carbon Law Group, P.C.

840 Apollo Street, Suite 100,

El Segundo, CA 90245

Carbon Law Group, P.C.

2500 Broadway Building F, Suite F-125,

Santa Monica, CA 90404

Carbon Law Group, P.C.

4195 Chino Hills Parkway #1135

Chino Hills CA 91709

(323) 543-4453


Carbon Law Group PC| Attorneys of Law | 1001 Wilshire Boulevard PMB 2083

Phone: (323) 543-4453 | Fax: (323) 488-9784 | Email:[email protected]

Located in Los Angeles, California, the law firm of Carbon Law Group PC. represents clients throughout California, including, but not limited to the cities of Los Angeles, El Segundo, Torrance, Pasadena, Santa Monica, Culver City, Long Beach, Irvine, Costa Mesa, and Orange County, Los Angeles County, Riverside County, San Bernardino County and San Diego County.


No Attorney-Client Relationship Created by Use of this Website. Neither your receipt of information from this website nor your use of this website to contact the Carbon Law Group, P.C. (hereinafter “the Firm”) or one of its lawyers creates an attorney-client relationship between you and the Firm. You will become a client of the Firm only if and when you sign an engagement agreement setting forth the scope of the Firm’s engagement, the fee arrangement, and other relevant matters. As a matter of policy, the Firm does not accept a new client without first investigating for possible conflicts of interests and obtaining a signed engagement letter. (The Firm may, for example, already represent another party involved in your matter.)

No Confidentiality. You may not use this website to provide confidential information about a legal matter of yours to the Firm. Your use of this website does not make you a client of the firm or even a prospective client of the Firm. If you have confidential information that you would like to give to any lawyer at the Firm, please communicate with one if the Firm’s lawyers in person or by telephone–not by filling in any form on this website or by sending an unsolicited email to the Firm or any of its lawyers.

No Legal Advice Intended. This website includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal issues problems..

Call Now Button Skip to content