The recently enacted healthcare reform legislation and the recent economic downturn are among the factors that will slow growth in the nursing home market, according to a new report from independent healthcare market research publisher Kalorama Information. While the $104 billion nursing home market will grow, the report estimates it will increase by just 3% this year as opposed to the 5% predicted by Kalorama prior to the recession a few years ago.
These findings are included in their report on the industry, “Long Term Care Market: Nursing Homes, Home Care, Hospice Care, and Assisted Living.””There are three main forms of payment for nursing homes — Medicaid, Medicare and equity loans,” said Bruce Carlson, publisher of Kalorama Information. “All are under pressure with the economic situation and healthcare reform.”With the average nursing home costing over $75,000 per year, some patients resort to equity loans or home sale proceeds to cover the costs, a funding source that has been put under strain by the decline in the housing market. But more than half of nursing home costs are paid by Medicaid or Medicare. This funding will change with the Patient Protection and Affordable Care Act that was signed into law on March 23.
Ref and Read more: http://www.thirdage.com/nursing-homes/healthcare-reform-could-limit-growth-of-nursing-home-industry