Nursing home cuts are shortsighted

Published 8:30 am Friday, April 2, 2010

The St. John’s campus has a significant financial impact on the local economy. We employ nearly 300 people including full-time and part-time staff. St. John’s is the seventh largest employer in Freeborn County with an annual payroll in 2009 of $7,725,000.

Nursing homes support 112,600 jobs throughout Minnesota and infuse billions of dollars into Minnesota’s economy every year. The majority of money spent on nursing home care goes directly to worker’s wages and is thereby funneled back into local communities. In Albert Lea alone three nursing homes employ a combined total of over 700 people and an estimated $18 million in wages and benefits.

Changing demographics reflect a demand for senior services such as assisted living facilities or home health care services. Baby-boomers are starting to turn 65 so the demand for senior services will continue to grow in the years ahead. Discussions of nursing homes or senior services tend to focus on the cost of care or services. But the fact is, nursing homes and senior services make significant, measurable, and vital contributions to the local and state economy while providing critical services to our aging population.

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Last year, nursing homes contributed to the states budget-balancing solution through a multi-year rate freeze. Senior services providers received a 2.58 percent cut. This year there is talk at the state Capitol about nursing home cutbacks and additional cuts to senior services providers. The impact of this would fall most heavily on our seniors and their caregivers. Although there are no easy answers or quick fixes to the state budget problems, additional cutbacks to the entire spectrum of older adult services are shortsighted and will leave Minnesota unprepared to address the needs of our aging population.

Scot Spates

CEO and administrator

St. John’s Lutheran Home

Albert Lea