New Analysis: Detroit Metropolitan Area Ranks #8 Nationally in Regard to Skilled Nursing Facility-Generated Economic Activity, Job Creation

New Avalere Health Study Details Key Detroit Area Stats Regarding State's 2nd Largest Health Facility Employer; Sustaining Strong Medicare Funding Critical as Michigan Medicaid System Remains Fragile

DETROIT, May 10, 2011 /PRNewswire-USNewswire/ -- A new Avalere Health LLC analysis released today detailing the annual economic and jobs output of skilled nursing facilities (SNFs) in the nation's 50 most populous Metropolitan Statistical Areas (MSAs) finds the Detroit/Warren/Livonia ranks eighth nationally. This fact underscores the Detroit metro area's importance to the entire state in terms of seniors' health care and its related employment base, said the Washington DC-based Alliance for Quality Nursing Home Care, which released the independent analysis. In addition, the study spotlights the critical need to sustain strong federal Medicare funding from Washington in the face of a fragile state Medicaid system administered in Lansing, the Alliance said.

"As entitlement reform discussion continues in Washington, we will continue to raise awareness of the fact Michigan's SNFs are the state's second largest health facility employer, after only hospitals, and a vital pillar to the state's jobs and economic strength," stated Alan G. Rosenbloom, President of the Alliance.  "Strong federal Medicare funding is critical to maintaining facilities' economic stability as Michigan's Medicaid program remains fragile. Localizing the significance of nursing facilities to the jobs base throughout urban, suburban and rural Michigan – and detailing the inherent value of SNF patient rehabilitation – will be central components of our educational effort with members of the Michigan congressional delegation."

The new Avalere Health LLC jobs/economic output analysis finds the following for the Detroit MSA:

Besides detailing the fact 70 percent of facility expenditures are staffing-related, Rosenbloom noted that tightening of credit markets during the economic downturn has caused many Michigan SNFs to experience financial stress – and that facilities often borrow funds to address cash flow issues that result from lags between service and payment. A June 2010 survey of Alliance for Quality Nursing Home Care and American Health Care Association (AHCA) member facilities fielded by Avalere Health LLC found that the credit crisis had a number of significant effects: 38 percent of single-facility respondents and 29 percent of multi-facility respondents reported having less access to credit due to the downturn, and 28 percent of single-facility respondents and 46 percent of multi-facility respondents stated that obtaining credit had become more expensive.

Michigan's nursing facilities are the leading provider of Medicare post-acute care services, treating 50 percent of all Medicare beneficiaries who are discharged from hospitals to post-acute care. The majority of patients are short-stay Medicare patients who are discharged from the hospital to the nursing facility, and need restorative and recuperative care before returning to home and their community.

To View Economic Output and Job Creation Statistics for all 50 MSAs, please see go to www.aqnhc.org.

SOURCE Alliance for Quality Nursing Home Care