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Rural Minnesota faces nursing home crisis as demand rises

Based on a report by Kelly Asche,

senior researcher for the Center of Rural Policy and Development

Nursing homes in rural Minnesota are decreasing at an alarming rate, just as demand for elder care is set to skyrocket.

Since 2005, the number of licensed nursing home beds has dropped 30% to 100%, depending on the region. Some of these beds were cut by facilities trying to save money, but many were lost permanently due to closures.

At the same time, more people need care. The Baby Boomer generation is aging, with demand for long-term care expected to increase steadily until 2045. Rural areas will feel the pressure first, since they already have an older population.

Why Are Nursing Homes Struggling?

The decline in nursing home capacity is driven by two big issues: More people choosing other types of care. Assisted living and home-based care have grown in popularity since the 1980s, along with policy and financial changes. There is a severe staffing shortage. Nursing homes can’t find enough workers to keep up with demand, especially in rural areas.

How Big Is the Problem?

As of February 2024, Minnesota has 33% fewer nursing home beds than in 2005. The losses hit rural areas the hardest: Rural counties have 41% fewer beds than in 2005. Small towns have 40% fewer beds. Urban areas saw smaller declines, losing 29% of their beds....


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