NAICS 623 - Nursing and Residential Care Facilities
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What is NAICS 623
NAICS code 623 encompasses the Nursing and Residential Care Facilities subsector, which includes establishments primarily engaged in providing residential care combined with nursing, supervisory, or other types of care tailored to the needs of residents. These facilities serve as critical environments where health and social services are integrated, delivering a continuum of care that ranges from basic assistance with daily living to skilled nursing care. Businesses operating in this sector include nursing homes, assisted living facilities, and specialized residential care centers. Government agencies contract for these services to support vulnerable populations such as the elderly, disabled, and individuals requiring long-term or rehabilitative care. These contracts ensure access to quality care facilities and help meet public health and social welfare mandates.
Industry Classification for NAICS 623
Industries in the Nursing and Residential Care Facilities subsector provide residential care combined with either nursing, supervisory, or other types of care as required by the residents. In this subsector, the facilities are a significant part of the production process, and the care provided is a mix of health and social services with the health services being largely some level of nursing services.
Breakdown for NAICS 623
- Provides residential care combined with nursing, supervisory, or other supportive services.
- Includes facilities such as nursing homes, assisted living, and specialized residential care centers.
- Involves a mix of health and social services tailored to individual resident needs.
- Facilities are integral to the production process, delivering continuous care onsite.
- Subject to federal and state healthcare regulations and quality assurance standards.
Included Activities for NAICS 623
- Providing skilled nursing care and medical monitoring.
- Offering assistance with activities of daily living (ADLs) such as bathing and eating.
- Administering medication management and therapy services.
- Supervising and coordinating resident care plans.
- Delivering social and recreational programs to enhance resident well-being.
- Conducting health assessments and maintaining medical records.
- Supporting rehabilitation and post-acute care services.
- Ensuring compliance with healthcare regulations and quality standards.
Business Types for NAICS 623
- Nursing homes and skilled nursing facilities.
- Assisted living and residential care communities.
- Specialized care centers for chronic and terminal conditions.
- Nonprofit and government-operated residential care facilities.
- Continuing care retirement communities (CCRCs).
Government Buyers for NAICS 623
Federal, state, and local government agencies are primary purchasers of services under NAICS 623. The Department of Veterans Affairs, Centers for Medicare & Medicaid Services, Department of Health and Human Services, and state Medicaid programs frequently contract for nursing and residential care to serve veterans, elderly citizens, and individuals with disabilities. These agencies rely on these contracts to fulfill obligations to provide long-term care solutions, support community health initiatives, and manage institutional care within public health programs. Additionally, government entities may procure these services for correctional facilities, military bases, and other public institutions requiring residential nursing care.
Contract Types & Procurement for NAICS 623
Contracts for NAICS 623 services typically include firm-fixed-price, cost-reimbursement, and indefinite delivery/indefinite quantity (IDIQ) agreements. Procurement methods often involve competitive bidding, requests for proposals (RFPs), and sole-source awards, depending on urgency and specificity of care needs. Contract values vary widely based on facility size, scope of services, and duration, ranging from small local contracts for assisted living support to multi-million-dollar federal agreements for comprehensive nursing home management. Government contracts may also include performance-based elements to ensure care quality and compliance with regulatory standards.
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