Yes, they do still exist and are now more commonly referred to as, Skilled Nursing Facilities (SNFs.)  This is where most elderly hospital patients are discharged after a hospital stay for an event or procedure that requires some therapy (physical, occupational, and/or speech) to return to a baseline condition.  Medicare generally covers this rehabilitation for a limited time as long as the patient is making progress. While patients can stay in a SNF for long term after Medicare coverage, it is extremely expensive (usually in the $300-$500/day range), is very institutional, rarely private, and has limited care staffing.  The only type of patients that would require a long term SNF stay are ones requiring persistent IV treatment (non-Hospice) or life sustaining devices such as a respirator.