Long Term Care Industry Ranks as Nation's 10th Largest Employer

- New national analysis shows Medicaid's investments in LTC leverages hundreds of billions in private investment, millions of jobs -

WASHINGTON, Jan. 27, 2011 /PRNewswire-USNewswire/ -- The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) today released a report underscoring the important role America's nursing facilities play in the economy, urging lawmakers to protect the funding streams that ensure these facilities can continue to play an important role in the national economy.

"In this economic engine that is the American economy, long term care is one of the pistons, consistently firing even in the worst of hardships," stated Governor Mark Parkinson, President and CEO of the American Health Care Association and the National Center for Assisted Living (AHCA/NCAL). "Because of $45 billion in Medicaid every year by federal and state governments, we are able to generate $529 billion in total economic activity, support and create over 5.4 million jobs, and return over $60 billion in taxes back to federal and state coffers annually."

The Governor emphasized the key role both Medicare and Medicaid funding plays together to support the health needs of the elderly, saying, "If the states cut Medicaid, that will have direct and drastic implications on not only our profession, but more importantly our ability to serve the greatest of our country. The potential for increased job growth – a priority of every lawmaker in this country – is huge. Our profession must receive the appropriate funding needed for us to meet the demand of Baby Boomers in the coming years."

With business lines stretching well beyond health care into transportation, food service, real estate and other sectors that keep the economy strong, long term care facilities rank ahead of industries such as merchandise retail (2.9 million), food retail (2.9 million) and both military (2.3 million) and non military federal government personnel (2.1 million) in terms of largest overall employment.

The economic impact analysis was based on data and compiled by AHCA using Impact Analysis for Planning (IMPLAN) data software -- enabling users to make in-depth examinations of state, multi-county, county, sub-county, and metropolitan regional economies. Broken out by national, state and congressional district levels, the multi-faceted data displays the direct impact long term care facilities have in every area of the nation.

Specifically, the report finds that:

• Long term care supports 3.7% of the nation's Gross Domestic Product (GDP)
• Echoing the national figure, there are 20 states where long term care is in the top ten of largest employers.
• There are 10 states in which long term care employs more than 10,000 individuals.
• Long term care is a top ten employer base in 172 congressional districts.
• There are 50 congressional districts where long term care employs more than 10,000 individuals.
• In 25 of 29 congressional districts in New York long term care is in the top ten employers.

To access the full data, please visit AHCA/NCAL's website at www.ahcancal.org.

SOURCE American Health Care Association

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