Nursing & Residential Care Facilities — profit margin & cost structure (U.S.)

For the U.S. nursing & residential care facilities industry, IRS tax data shows an estimated 14.9% net margin on an owner-operator basis (national, sole proprietorships, tax year 2023). That figure — what a self-employed owner keeps per sales dollar before paying themselves — is the number this page exists to report; read the note below on how it's measured.

14.9%net margin · owner-operator basis

National as of tax year 2023 Moderate confidence source ↗

Owner-operator basis (IRS SOI sole proprietorships, TY2023): net income less deficit ÷ business receipts, at NAICS 623 (Nursing & Residential Care Facilities). Sole-proprietor labor is not expensed, so this overstates corporate-style profit.

Cost structure

National, from IRS Statistics of Income (weighted sample). Where a component is not separately reported, it is shown as insufficient data — never estimated.

Component	Value
Cost of goods sold (% of receipts)	3.4%	National source ↗
Labor / officer compensation (% of receipts)	22.7%	National source ↗

Business size distribution (national)

Share of U.S. nursing & residential care facilities establishments by number of employees (Census County Business Patterns, 2023). 24% have fewer than 5 employees.

1–4 emp22,618 (24%)

5–9 emp20,491 (22%)

10–19 emp16,712 (18%)

20–49 emp14,378 (15%)

50–99 emp11,509 (12%)

100+ emp9,063 (10%)

Where this industry operates — all 51 states

Establishment counts, employment, and wages are available for free elsewhere too (e.g. Data USA). States ordered by number of establishments — pick one for local context:

Full cost-structure breakdown by business-size class and side-by-side industry comparison are available to subscribers. This page shows the current-year national headline plus the multi-year establishment trend.

Frequently asked

What is the average profit margin for nursing & residential care facilities businesses?

About 14.9% net margin on an owner-operator basis (national, IRS SOI sole proprietorships, tax year 2023). This counts the owner's own labor as profit, so it overstates corporate-style margin — see the note above.

How many nursing & residential care facilities businesses are there in the U.S.?

94,771 establishments with paid employees (Census County Business Patterns, 2023).

What is the average wage in the nursing & residential care facilities industry?

$872 per week (BLS QCEW 2024, private sector) — about $45,344/year.

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machine-readable JSON · NAICS 623

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