Elder Law News

Americans Less Likely To Use Nursing Home Care Today

Dramatic changes in the nursing home industry have taken place over the past decade, especially because of growth in home health care, according to findings from the latest survey of nursing homes in America released today by HHS.

The 1995 survey shows there are fewer, but larger, nursing homes offering long-term care today than 10 years ago. At the same time, despite the growth in the number of older Americans who make up the largest proportion of nursing home residents, there has been only a slight increase in the number of residents and an actual decline in the occupancy rates.

The 1995 survey also showed that nursing homes are more likely to be operated as part of a chain, when comparing the 1995 survey with the previous survey conducted in 1985.

"Americans who need long-term care have more choices today. Many more are able to stay in their homes and still receive the care they need," said HHS Secretary Donna E. Shalala. She attributed this shift to the rapid growth in home health care as well as the advances in medical technology that permit people to postpone institutional care and opt for less costly home-based alternatives.

However, Secretary Shalala said, "Nursing homes remain a critical component of health care in this country and are essential for those who need intensive, 24-hour medical care. Wherever care is provided, we must ensure that it is appropriate and high quality."

Since 1985, the number of nursing homes decreased by 13 percent while the number of beds increased by 9 percent. The number of nursing home residents was up only 4 percent between 1985 and 1995, despite an 18-percent increase in the population aged 65 years and over. Prior to the 1995 survey, utilization rates had kept pace with the increase in the elderly population.

About 1.5 million residents were receiving care in 16,700 nursing homes in 1995. Nearly 1.8 million beds were available for use and these facilities operated at about 87 percent of their capacity. Almost 90 percent of the residents in the 1995 survey were aged 65 years and over. More than 35 percent were aged 85 years and over. Residents were also predominantly white (88 percent) and female (72 percent).

Most nursing homes (66 percent) are operated for profit and over half are operated as part of chains. Chain-affiliated homes increased from 41 to 55 percent between 1985 and 1995. While there was a 23-percent drop in the number of proprietary homes over the past decade, the total number of beds in proprietary homes increased by almost 3 percent, resulting in fewer, but larger, homes.

Overall, some 1.3 million full-time equivalent employees (FTE's) were working in nursing homes. The largest single category--almost 1 million FTE's--provide nursing services.

The 1995 National Nursing Home Survey is the fourth survey conducted by the National Center for Health Statistics, Centers for Disease Control and Prevention, since the early 1970's to track and profile the use of nursing

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	Did You Know?
	Medicaid does not provide medical assistance for all poor persons. Even under the broadest provisions of the Federal statute (except for emergency services for certain persons), the Medicaid program does not provide health care services, even for very poor persons, unless they are in one of the designated eligibility groups. Low income is only one test for Medicaid eligibility; assets and resources are also tested against established thresholds.