Defining the Industry: What Field Is a Nursing Home In?

Oct 25, 2025 2 min read •

Senior Living long-term care Healthcare Industry

With over 1.3 million people residing in nursing homes across the United States, it's clear they are a vital service. But the question remains: what field is a nursing home in? They exist at the intersection of healthcare, residential services, and social support.

Quick Summary

A nursing home operates within the long-term care subsector of the broader healthcare and social assistance industry, providing skilled medical services, rehabilitation, and residential care for individuals with complex health needs.

Key Points

Primary Field: Nursing homes belong to the 'Nursing and Residential Care Facilities' subsector, which is part of the broader 'Health Care and Social Assistance' industry [1].
Core Function: Their defining feature is providing 24/7 skilled nursing and medical care, a higher level than any other residential care option [3, 4].
Hybrid Services: The field combines medical services, rehabilitation (physical, occupational, speech therapy), and residential/custodial care [4].
Regulatory Oversight: Nursing homes are heavily regulated by federal (CMS) and state agencies to ensure standards of care, safety, and resident rights [5, 7].
Key Distinction: Unlike assisted living, which focuses on personal care and social engagement, nursing homes are equipped for complex medical needs and post-hospital recovery [3].
Industry Code: The specific industry classification for nursing homes is NAICS code 623110, designating them as Skilled Nursing Facilities [2].

Decoding the Nursing Home Industry: More Than Just a Residence

Nursing homes, also known as Skilled Nursing Facilities (SNFs), are a key part of the long-term care industry. The U.S. Bureau of Labor Statistics classifies them under "Nursing and Residential Care Facilities" (NAICS 623), within the larger "Health Care and Social Assistance" sector [1.2]. This classification highlights their blend of health and social services, focusing on skilled nursing [2]. Unlike other senior living options, nursing homes offer 24-hour skilled nursing and medical care for individuals needing significant ongoing medical attention [3, 4].

The Multifaceted Nature of Nursing Home Services

A nursing home's field integrates several crucial services:

1. Skilled Medical and Nursing Care

Providing 24/7 care from licensed professionals is central to a nursing home's function. Services include:

Medication Management: Including complex administration like IV drugs [4].
Wound Care: Treating various skin conditions [4].
Chronic Disease Management: Monitoring conditions like diabetes or heart disease [4].
Post-Acute Care: Aiding recovery after surgery or illness [4].

2. Rehabilitation and Therapy

Programs like physical, occupational, and speech therapy help residents regain or maintain function and quality of life [4].

3. Residential and Custodial Care

Beyond medical needs, nursing homes are a living environment. This includes providing housing, meals, assistance with daily activities (ADLs), and social activities [4].

Nursing Homes vs. Other Senior Care Facilities: A Comparison

Differentiating nursing homes from other senior care is key to understanding their field. The primary difference is the intensity of medical care [3].


Feature	Nursing Home (SNF)	Assisted Living Facility (ALF)	Independent Living
Primary Focus	Medical care & 24/7 skilled nursing	Socialization & help with ADLs	Lifestyle & convenience
Level of Care	Highest level outside a hospital	Intermediate; personal & supportive	Minimal to none
Staffing	RNs, LPNs, CNAs, therapists on-site	Caregivers, medication aides; nurse may be on-call	Property management, activity directors
Resident Profile	Chronic illness, post-hospitalization, significant ADL needs	Needs some help with ADLs, medication reminders	Active, independent seniors
Payment Sources	Medicare (for short-term rehab), Medicaid, private pay	Primarily private pay; some long-term care insurance	Private pay

The Regulatory and Business Landscape

Nursing homes are highly regulated, with standards set by the Centers for Medicare & Medicaid Services (CMS) [5, 7]. State health departments conduct inspections to ensure compliance [5]. The main federal law is the Nursing Home Reform Act of 1987 [6]. For more on standards, visit the CMS website [7].

Commercially, the industry uses NAICS code 623110 for Nursing Care Facilities (Skilled Nursing Facilities) [2]. Around 69% of U.S. nursing homes are for-profit [6].

Conclusion: A Critical Field in the Healthcare Continuum

A nursing home is a crucial part of the long-term care and healthcare sectors [1, 2]. It bridges acute care and less intensive settings, providing skilled medical care, therapy, and residential support for vulnerable individuals [4, 6].

Frequently Asked Questions

A nursing home is classified under the NAICS code 623110, which stands for 'Nursing Care Facilities (Skilled Nursing Facilities)'. This falls under the broader 'Health Care and Social Assistance' sector [1, 2].

Yes, absolutely. Nursing homes are a critical part of the healthcare continuum, providing post-acute, long-term, and rehabilitative care that requires licensed medical professionals [4, 6].

The main difference is the level of medical care. The nursing home field is centered on providing 24/7 skilled nursing and medical services. The assisted living field focuses on providing housing with personal care support and social activities for those who don't need constant medical supervision [3].

The nursing home industry is regulated at both the federal and state levels. The Centers for Medicare & Medicaid Services (CMS) sets federal standards, while state departments of health conduct inspections and enforce regulations [5, 7].

The field includes a wide range of clinical and non-clinical roles, such as Registered Nurses (RNs), Licensed Practical Nurses (LPNs), Certified Nursing Assistants (CNAs), physical and occupational therapists, social workers, dietitians, and administrators [4].

Yes, for the most part, the terms are used interchangeably. 'Skilled Nursing Facility' (SNF) is the more formal, clinical term that emphasizes the medical and rehabilitative services provided, which qualifies these facilities for Medicare and Medicaid reimbursement [4].

Yes, but in a limited capacity. Medicare Part A covers short-term stays (up to 100 days) in a skilled nursing facility for rehabilitation after a qualifying hospital stay. It does not typically cover long-term custodial care.

References

Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.