Pennsylvania Health Care Association (PHCA)

Continued increases in longevity among the U.S. population, including those with chronic diseases or disabilities, are creating a demand for more LTC services of all types. Pennsylvania currently ranks second among the fifty states in the proportion of residents aged 65 and over. The Commonwealth’s fastest growing age group includes those aged 85 and over. Although occupancy levels in Pennsylvania nursing facilities have declined somewhat over the last few years, the rapidly growing aged 85 and over population necessitates a critical appraisal of the population's need for LTC services in the future and how these services should be coordinated. This appraisal has important implications for the Commonwealth's economy as well as the LTC community. With the current policy emphasis on HCBS LTC services, and the use of various provider taxes and intergovernmental transfers which may not be sustainable, there is a growing concern over the future financial viability of nursing homes. As such, various economic and healthcare delivery scenarios must be considered in future planning in order to assure an adequate supply of all types of LTC services to meet the complex needs of an aging population. Given these concerns, PHCA commissioned The Lewin Group, Inc. to conduct a study that would address two basic questions: What is the current economic impact of the nursing facility community on the Commonwealth? What LTC services will be needed and available over the next ten years? This report address the first of these two questions and contains information on the economic impact of nursing homes on the Commonwealth of Pennsylvania.

"Throughout the engagement, Lewin consultants listened to us and delivered superb analyses and thoughtful guidance–not canned solutions."  NONPROFIT HEALTH SYSTEM