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Nursing and residential care facilities, 2017 and 2018

Released: 2020-02-19

The nursing and residential care facilities industry posted higher growth in operating revenue compared with overall growth of the Canadian economy in 2017 and 2018. Operating revenue was up 4.8% from 2016 to $27.2 billion in 2017, and grew a further 4.4% in 2018 to $28.4 billion.

The aging population has fuelled demand for this industry. The proportion of the population aged 65 and older increased from 16.4% in 2016 to 17.1% in 2018, led by Quebec, Alberta, British Columbia and the Atlantic provinces (except Prince Edward Island). According to Statistics Canada's population projections, one-fifth of Canadians will be aged 65 and older by 2025, and this should continue to drive demand for nursing and residential care facilities.

Public facilities

The operating revenue of the public nursing and residential care facilities industry increased 3.0% to $16.8 billion in 2018, an easing of growth compared with the 4.2% increase in 2017. Alberta (+4.6%), Prince Edward Island (+4.1%) and Quebec (+3.4%) experienced the strongest growth in 2018, while the remaining provinces reported more modest growth.

Similarly, operating expenses rose 3.9% to $16.4 billion in 2017, but growth slowed to 3.0% in 2018, leading to $16.9 billion in operating expenses for that year. Alberta (+3.9%), British Columbia (+3.9%) and Ontario (+3.5%) saw the largest increases in operating expenses in 2018.

Salaries, wages, commissions and benefits rose 3.2% to $12.5 billion in 2018, an acceleration compared with the 2.7% increase in 2017.

As a result, the public nursing and residential care facilities industry reported an operating deficit of $54.5 million in 2018, compared with an operating deficit of $50.5 million in 2017.

Private facilities

The operating revenue of the private nursing and residential care facilities industry grew 6.5% to $11.6 billion in 2018, after increasing 5.7% in 2017. There were gains in all provinces, with the strongest growth for 2018 in Quebec (+8.7%), British Columbia (+8.1%) and Alberta (+8.0%).

Operating expenses did not grow as fast as operating revenue in 2017 and 2018. Operating expenses totalled $9.8 billion in 2017, up 5.4% from 2016, and increased a further 5.7% in 2018 to $10.4 billion. Most provinces saw increases in operating expenses, led by Quebec (+9.8%) and Saskatchewan (+7.2%), which posted the strongest growth in 2018.

Salaries, wages, commissions and benefits increased 3.7% in 2017 and 5.2% in 2018, to reach $5.7 billion.

The operating profit margin for private nursing and residential care facilities, which has been growing steadily since 2014, was 9.8% in 2017 and 10.4% in 2018.

  Note to readers

The nursing and residential care facilities industry covers nursing care facilities; residential developmental handicap, mental health and substance abuse facilities; community care facilities for the elderly; and other residential care facilities.

Separate estimates are published for private and public facilities. Public facilities are owned by not-for-profit organizations, as well as by government.

The nursing and residential care facilities data for 2014, 2015 and 2016 have been revised.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).

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