CHANGE IS IMPERATIVE 2013

FACT CARD 1: ECONOMIC IMPACT OF LONG-TERM CARE

Economic Impact of Nursing Homes and Assisted Living Establishments in Minnesota (in billions)1

112,600

$1.80 $1 $3.90

Direct

Indirect
Induced

Nursing homes and assisted living establishments are community assets that strengthen local economies.
Discussions of older adult services tend to focus on the cost side of the financial equation. But the fact is, nursing homes and assisted living establishments make significant, measurable and vital contributions to the state and local economies while providing critical services to our aging population.

Nursing homes and assisted living establishments support 112,600 Minnesota jobs and contribute $6.7 billion to the state economy2:
$3.9 billion in direct economic activity $3.2 billion in labor income and $1.1 billion in state, federal and local tax revenue Nursing homes and assisted living establishments are often the largest employers in rural Minnesota communities.

CHANGE IS IMPERATIVE 2013

An investment in older adult services is an investment in a vital growth industry that creates much-needed jobs statewide.
Changing demographics mean demand for nursing homes and assisted living will continue to grow, spurring additional job growth in older adult services and increased economic vitality for local communities throughout Minnesota. More than 70 cents of every dollar spent by providers goes directly to wages and benefits for the over 112,000 employees in Minnesota. Those wages are a significant contributor to the local economy in hundreds of communities.

Wages and Benefits as a Percentage of Operating Costs3 27%

73%
Wages and Benefits
DATA SOURCES: 1. Economic impact analysis prepared for the American Health Care Association by The Lewin Group analysis using the Impact Analysis for Planning (IMPLAN), January 2009. 2. Older Adult Services in Minnesota: An Analysis of the Economic Impacts from Potential Funding Reductions. Prepared for The Long-Term Care Imperative by ECONorthwest. March 18, 2009. 3. 9-30-2008 Medicaid Cost Report, freestanding nursing facilities. 4. Minnesota Department of Employment and Economic Development, Labor Market Information Office

About The Long-Term Care Imperative

The Long-Term Care Imperative is a collaborative effort between Care Providers of Minnesota and Aging Services of Minnesota, the states two long-term care provider associations. Our goal is to advance a shared vision and future for older adult housing, health care, and supportive services.

FACT CARD 1: ECONOMIC IMPACT OF LONG-TERM CARE

CHANGE IS IMPERATIVE 2013