Nursing and residential care facilities, 2021

Released: 2023-03-21

Dealing with the effects of the COVID-19 pandemic: Financial estimates for nursing and residential care facilities in 2021

Nursing and residential care facilities in Canada have been dealing with the negative effects of the COVID-19 pandemic. Staffing shortages have been prevalent since the number of employees fell 2.1% in 2020. As well, nursing and residential care facilities faced higher operating expenses for personal protective equipment purchases, testing and screening measures, and other infection control measures and supplies. In 2020, the number of residents dropped 4.3% because of fewer admissions and a higher number of deaths.

Key highlights of public facilities

In this context, the operating revenue of public facilities rose by 5.0% to $20.4 billion in 2021 and made up the largest share (55.2%) of the industry. Quebec ($6.9 billion) contributed just over one-third (33.6%) of total Canadian operating revenue, followed by Ontario ($4.3 billion) and Alberta ($2.6 billion).

Operating expenses also increased 5.0%, reaching $21.3 billion. Salaries, wages, commissions and benefits rose by 4.8% in 2021 to $15.7 billion, representing almost three-quarters (73.5%) of operating expenses. The operating deficit more than tripled during the pandemic; in 2021, it reached $936.9 million, the largest deficit seen since comparable estimates became available in 2014.

Key highlights of private facilities

In 2021, the operating revenue of private facilities also increased by 5.0%, reaching $16.6 billion, and private facilities accounted for 44.8% of the industry total. Ontario continued being the main contributing province, with $6.6 billion in operating revenue, and was the only province that had more private facilities than public. The next-largest contributing provinces were Quebec ($4.6 billion in operating revenue) and British Columbia ($2.2 billion).

Operating expenses totalled $15.2 billion in 2021, a 5.7% increase from 2020. Salaries, wages, commissions and benefits, representing just over half (55.8%) of operating expenses in private facilities, rose 6.0% in 2021 to $8.5 billion. Operating expenses have continued increasing faster than operating revenue since the pandemic began, lowering the profit margin to 8.6%.

Contact information

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