Report: Nursing Home Sector Fuels Economic Activity in California
California's skilled nursing industry generates nearly $17.9 billion in annual revenue, the second-highest amount among U.S. states, according to a new report from the Alliance for Quality Nursing Home Care, the Sacramento Business Journal reports.
The only state to outpace California is New York, where the nursing home industry generates more than $21 billion in annual revenue.
Researchers used data from the U.S. Bureau of Labor Statistics to evaluate nursing home-generated economic activity.
The study found that:
- The nursing home industry helps support 179,300 jobs in California;
- Total nursing home wages in California were nearly $3.7 billion in 2009; and
- Total nursing home expenditures in California were about $7.8 billion in 2009.
The study also found that the nursing home sector is California'sÂ second-largest health facility employer,Â behind hospitals.
Budget Cuts Could Affect Industry
In related news, the California Association of Health Facilities has expressed concern that Gov. Jerry Brown's (D) proposed budget cuts could result in the loss of nearly $415 million in annual income for nursing homes.
Brown has proposed a 10% cut in Medi-Cal payments to nursing homes. Medi-Cal is California's Medicaid program (Robertson, Sacramento Business Journal, 3/8).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.