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New Avalere Health Analysis: Philadelphia (#3) and Pittsburgh (#10) in Top 50 U.S. Metro Areas in Terms of Skilled Nursing Facility-Generated Economic Activity and Job Creation


News provided by

Alliance for Quality Nursing Home Care

May 11, 2011, 01:46 ET

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www.PAsnfjobs.com Launched to Detail Key Stats Surrounding PA's 2nd Largest Health Facility Employer; Pennsylvania Only State in Study to Have Two Metro Areas in Top 10 Nationally

PHILADELPHIA, May 11, 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 Pennsylvania has two in the top 50: Philadelphia/Camden/Wilmington (#3) and Pittsburgh (#10). Pennsylvania is the only state in the study to have two MSAs in the top 10, and underscores the Keystone State's vast importance in terms of seniors' health care and its related employment base.  

To detail the key jobs and economic activity associated with the state's skilled nursing facilities – which are Pennsylvania's 2nd largest health facility employer after only hospitals – the Alliance for Quality Nursing Home Care, based in Washington, D.C., also launched a new website today to do so. The new website, www.PAsnfjobs.com, outlines the Philadelphia and Pittsburgh MSA data, and details the total statewide data for SNF jobs and economic activity.

"As the year progresses, we will continue to raise awareness of the fact Pennsylvania SNFs are a vital pillar to local jobs and economic strength, that strong Medicare funding is critical to maintaining facilities' economic stability, and that increasing numbers of patients are returning home after successful rehabilitation," stated Alan G. Rosenbloom, President of the Alliance, and also a former President and CEO of the Pennsylvania Health Care Association (PHCA), in Harrisburg. "Localizing the significance of nursing facilities to the jobs base throughout urban, suburban and rural Pennsylvania – and detailing the importance of patient rehabilitation – will be central components of our educational effort with members of Congress."

The new Avalere Health LLC jobs/economic output analysis finds the following for the Philadelphia and Pittsburgh MSAs:

MSA

Total Impact of SNF Spending On Economic Output

Total Impact of SNFs On Job Creation

Total # of SNF Jobs





Philadelphia (#3)

$8.682 Billion

53,024

33,397

Pittsburgh (#10)

$2.912 Billion

22,703

14,893

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 Pennsylvania SNFs to experience financial stress – and 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.

Emil Parker, Director at Avalere Health LLC, said, "Given that the average age of nursing 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."

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

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