623 - Nursing and Residential Care Facilities

When navigating government contracting, business classification, or industry research, the NAICS Code 623 plays a vital role for companies involved in the healthcare and social assistance sector. This code specifically covers businesses that provide essential nursing and residential care services to individuals in need. If you’re operating or interested in entering this industry, understanding NAICS 623 is crucial for compliance, marketing, and growth strategies.

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What is NAICS Code 623?

NAICS Code 623 is titled "Nursing and Residential Care Facilities." This industry sector focuses primarily on establishments engaged in providing nursing care, residential care, and related services to people who require assistance with daily living tasks or medical care. It features a range of facilities such as nursing homes and assisted living centers, addressing the needs of elderly individuals, people with disabilities, or those needing mental health and substance abuse treatment.

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Sector Overview: Health Care and Social Assistance

NAICS Code 623 falls under the broader Health Care and Social Assistance sector, which encompasses organizations dedicated to health services and social support. The facilities classified under this NAICS code include:

• Nursing Care Facilities: Offering skilled nursing care, rehabilitative services, and medical monitoring.
• Residential Mental Health and Substance Abuse Facilities: Providing residential treatment, therapy, and support for mental health disorders and addiction.
• Assisted Living Facilities for the Elderly: Supporting seniors with daily living assistance while promoting independence and social engagement.

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NAICS Code 623 Size Standards

To qualify under this code for government contracting or SBA (Small Business Administration) programs, size standards typically focus on employee count or annual revenue. For instance:

• Size Standard Criterion:
  • Usually, a business qualifies as "small" if it has fewer than 1,250 employees
  • Or meets specific revenue benchmarks outlined by the SBA for your particular service area (varies based on subcategories)

Always check current SBA guidelines for precise eligibility, as size standards may periodically update.

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Examples of Businesses Under NAICS 623

Here are some examples of business types and activities covered by NAICS 623:

• Nursing Homes providing 24-hour skilled nursing and rehabilitation care
• Assisted Living Residences offering help with meals, medication, bathing, and mobility
• Residential Mental Health Treatment Facilities specializing in inpatient therapy and counseling
• Substance Abuse Rehabilitation Centers providing recovery services in residential settings
• Continuum Care Retirement Communities offering various levels of healthcare and living arrangements

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NAICS Code 623: Code Details at a Glance

NAICS Code	Title	Description	Sector	Typical Business Types
623	Nursing and Residential Care Facilities	Establishments providing nursing, residential, and related care services to those needing assistance or medical care	Health Care and Social Assistance	Nursing Care Facilities, Assisted Living, Residential Mental Health and Substance Abuse Facilities

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Frequently Asked Questions (FAQs)

What services are included in NAICS Code 623?

The code includes services such as skilled nursing care, personal assistance with daily tasks, inpatient mental health care, substance abuse treatment, and elderly assisted living.

Are hospice care facilities part of NAICS 623?

Hospice care facilities usually fall under a related but different NAICS code (e.g., 623110 for nursing care facilities may cover some hospice services, but specialized hospice providers may be classified separately).

How can businesses benefit from identifying their NAICS code?

Correctly identifying your NAICS code helps with government contracting, grant applications, market analysis, and regulatory compliance.

Can assisted living facilities be classified under this code?

Yes, assisted living facilities for the elderly are one of the primary business types under NAICS 623.

Where can I verify the size standards for my business?

The SBA website provides detailed, updated size standards applicable to NAICS Code 623 subcategories.

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Conclusion

NAICS Code 623 – Nursing and Residential Care Facilities – is an essential classification for businesses offering nursing and residential care services. With a strong focus on helping vulnerable populations, facilities under this code play a critical role within the Health Care and Social Assistance sector. Understanding this NAICS code, its business types, and eligibility requirements is fundamental for success in government contracting and industry compliance.

If you are operating or planning to launch a nursing or residential care business, aligning with NAICS Code 623 ensures your business is correctly positioned for opportunities in this growing sector.