Just the Facts

Posted by Heather Bruneau on August 20, 2008

We have begun the challenging work of conducting secondary research to support our observational findings. Here is a quick snapshot of some highlights from our secondary research.

Nursing homes today

• Total spending for nursing homes reached $125 billion in 2006
  • Of this about $45 billion was paid for out of pocket or by private insurance/funds
  • The average cost of a private room in 2007 was $77,745/yr
• According to a recent government study, 9 out of 10 nursing homes lack adequate staffing. In order to get the recommended number of staff, nursing homes would have to hire:
  • 77,000-137,000 nurses 
  • 22,000-27,000 licensed practical nurses
  • 181,000-310,000 certified nursing assistants
  • Currently 35% of nurses and 20% of nursing assistants are over 50 years of age
  • Nursing home occupancy rates were 92% in 2007

The "silver tsunami"

• 80 million “baby boomers” were born between 1946-1964
• As of July 2005, 78 million were still alive
• The first baby boomer turns 65 in 2011
• 71.5 million people will be over 65 in 2030 (currently only 36 million people are 65+)
• By 2030, an estimated 5 million people will need nursing home care if the current trends continue (currently only 1.4 million reside in nursing homes)
• By 2030, 10-12 million people will need long term care overall
• The cost for a semi-private room in 2030 is estimated at  $190,000/year
• By 2030, total spending for nursing homes will reach an estimated $700 billion