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GOOD NEWS
Economic impact of nursing homes highlighted
in MTSU research study
Nursing homes serve not only patients
and their families, they serve their communities as well. Health
care is big business in Tennessee, and nursing homes are no
different from other types of care providers in that they create
jobs and generate significant economic activity.
THCA recently joined forces with Middle Tennessee State University's
Business and Economic Research Center to produce a report detailing
the economic impact nursing homes have on communities throughout the
state.
The report, titled "The Economic Impact of Nursing Home Medicaid
Payments on the Tennessee Economy," was distributed this week to
members of the General Assembly as well as key state officials. It
reveals that federal Medicaid payments for nursing home care had a
total economic impact of $1.25 billion in 2001, creating a total of
22,231 jobs.
Among the report's other key findings:
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Of the $825 million in
actual state and federal Medicaid reimbursements to support
facilities' operational expenses and payroll, an estimated $526
million are attributed solely to federal payments, representing the
direct impact on the state's economy;
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In addition to the
direct impact, multiplier impacts created $729 million in
expenditures statewide;
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Federal Medicaid
reimbursements to support operational expenditures and payroll
directly created an estimated 10,770 jobs, and an additional 11,461
resulted through multiplier impacts;
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For every dollar of
government Medicaid reimbursement, $2.39 in spending is created in
the Tennessee economy through multiplier impacts; and
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For every dollar of
state funding, Tennessee's economy gains $1.78 in federal matching
funds and a total impact of $4.25.
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The MTSU study provides tangible
evidence that Tennessee is making a very wise investment in nursing
home care. By ensuring that nursing homes remain viable, the state
is doing more than just providing a place where the elderly and
disabled can get the care they need. It's also helping fuel the
economy by making health care careers a possibility for thousands of
Tennesseans.
To view the study in its entirety,
click here
(PDF).
“Good News”
is a feature designed to spotlight some of the many
positive aspects of long-term care in Tennessee. Know of a “good
news”
item?
Contact THCA’s Communications Department at info@thca.org.
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