PENNSYLVANIA — A new report from LeadingAge PA finds that Pennsylvania’s nursing home capacity is declining as demand for senior care is projected to rise sharply, driven by an aging population.
The 2026 State of Pennsylvania Nursing Homes Report shows the number of residents over age 84 is expected to nearly triple by 2050, while the number of facilities and available beds has decreased.
Since 2020, Pennsylvania has lost 37 nursing homes and 4,318 certified nursing home beds, according to the report.
Among surveyed providers, 49% reported declining hospital admissions in the previous 90 days, and 29% said they have intentionally left licensed beds unfilled.
The report identifies workforce shortages and inadequate Medicaid reimbursement rates as the primary factors limiting capacity.
Sixty-eight percent of providers reported more than five open direct care positions, reflecting ongoing staffing challenges.
Medicaid covers approximately 70% of nursing home residents in Pennsylvania, but reimbursement rates do not fully cover the cost of care, according to the report.
LeadingAge PA President and CEO Garry Pezzano said the state’s ability to provide care is being reduced as demand increases.
“The evidence of an urgent crisis is right in front of us – Pennsylvania’s capacity to care for our elders is shrinking by the thousands while the population grows exponentially,” Pezzano said.
One Montgomery County nursing home operator cited financial strain tied to Medicaid reimbursement, stating, “We cannot afford to take care of Medicaid [residents] and are considering shutting down our skilled nursing services.”
A nursing home administrator in Centre County described ongoing funding challenges as limiting care access, stating the lack of government support affects the ability to provide services.
LeadingAge PA is advocating for adjustments to the state’s Medicaid funding formula, including setting a 0.84 floor to the Budget Adjustment Factor, which would represent an estimated $274 million annual investment in nursing homes for the 2026–2027 fiscal year.
LeadingAge PA represents more than 400 senior housing and care providers serving over 75,000 older adults across the state.
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