New Analysis: In NJ, Nursing Facility-Generated Economic Activity $9.83 Billion Annually; Over 80,000 Jobs Tied to Key New Jersey Health Sector

Governor Christie's Proposed $540 Million Medicaid Cuts Raises Stakes in 2011 DC Medicare Funding Debate; NJ Congressional Delegation Urged to Ensure Robust Medicare Funding in FY 2012 Federal Budget

TRENTON, N.J., Feb. 24, 2011 /PRNewswire-USNewswire/ -- A new 50-state analysis detailing the significance of the U.S. skilled nursing sector to the strength of America's economy finds nursing facility-generated economic activity is $9.83 billion annually in New Jersey, with 53,806 jobs tied directly to this key state economic driver and employer. The total number of corollary jobs resulting from nursing facility activity is 81,823, thus making the skilled nursing sector New Jersey's second largest health facility employer, after hospitals.

With President Barack Obama having unveiled his proposed FY 2012 federal budget, and with Governor Chris Christie proposing $540 million in state Medicaid funding cuts, the new study spotlights how New Jersey facilities are caught in an ongoing state-federal funding squeeze. The study also notes that state Medicaid cuts -- combined with potential Medicare funding reductions in Washington -- would risk not only seniors' care, but also jobs stability and the fragile economic recovery now taking shape. The funding squeeze is especially pertinent from a care perspective due to the fact a majority of facility patients rely upon Medicare and Medicaid.

Moreover, the study emphasizes the critical importance of stable Medicare funding from Washington in propping-up the ailing New Jersey Medicaid program, which has become a touchstone of budgetary discussion in Trenton, and state capitols nationwide. Alan G. Rosenbloom, President of the Washington-based Alliance for Quality Nursing Home Care, stated: "With Governor Christie under enormous pressure to balance his budget, this places a premium on ensuring President Obama and the New Jersey congressional delegation work to achieve stable Medicare funding for the skilled nursing sector in a final FY 2012 budget. Doing so will help protect New Jersey seniors' care, grow the New Jersey jobs base, and nurture the state's fragile economic recovery."

The new February 2011 installment of the Alliance for Quality Nursing Home Care's "Care Context" series of health policy analyses, created with analytic support from Avalere Health, a non-partisan health advisory firm, details the fact that, nationally, the U.S. skilled nursing sector accounts for 1.7 million jobs, with a total impact of over $201 billion annually on U.S. economic activity. The new analysis finds that in the northeast and mid-Atlantic region, New Jersey has the highest nursing facility sector employment and economic activity except for New York and Pennsylvania:

"When considering budgetary policy for FY 2012, we want to ensure the New Jersey congressional delegation appreciates the considerable positive impact of skilled nursing facilities on the state's economy, and that achieving Medicare funding stability in Washington has a significant positive impact on local economic activity and jobs," continued Rosenbloom, an expert on the growing and problematic inter-dependence of Medicaid and Medicare funding. "Medicare is more than a key national health program; it serves as a cornerstone of rural, suburban and urban economic vitality throughout New Jersey."

Emil Parker, Director at Avalere Health, the lead author of the analysis, said nursing facilities across New Jersey and the nation are responding to the funding squeeze in a variety of ways, including submitting late payments to vendors and being forced to delay facility improvements and maintenance: "Given that the average age of nursing home facilities in the United States is 29 years, delays in maintenance may negatively affect residents' quality of life. In addition, if nursing facility physical plants cannot be maintained adequately and the sector's capacity declines as a result, some patients may have to spend more time in higher-cost acute care hospitals because of delays in transfers to nursing facilities," he said.

Nursing facilities are the dominant 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 home to their community. Over the past two years, the nursing facility sector – through both federal regulatory and budgetary actions – has been forced to absorb nearly $30 billion nationally in Medicare cuts over ten years.

To View Complete Study, and to Learn More About the Significance of the U.S. Nursing Home Sector to the U.S. Economy and its Dominant Role in Caring for Post-Acute Care, go to www.aqnhc.org.

SOURCE Alliance for Quality Nursing Home Care