Federal nursing home spending gains speed while overall healthcare spending slows

Share this article:
Guest Columns: Long-term care reform too expensive
Guest Columns: Long-term care reform too expensive
Federal spending on nursing home and home health accelerated in 2007, even as overall healthcare spending grew at the slowest rate since 1998, according to a new spending report issued today by the Centers for Medicare & Medicaid Services.

Freestanding nursing home spending expanded by 4.8% that year, compared with 4.0% in 2006. Meanwhile, spending for freestanding home healthcare services increased to 11.3%. Much of this growth was due to faster price growth in that industry, according to CMS. Overall healthcare spending climbed by 6.1% in 2007 to $2.2 trillion, or $7,421 per person. Total healthcare spending by public programs, such as Medicare and Medicaid, grew 6.4% in 2007, a deceleration from 8.2% 2006. 

One of the factors contributing to the overall slower growth in federal healthcare spending was a deceleration in prescription drug spending due to an increased use of generic medication. Retail prescription drug spending grew by 4.9% in 2007, compared with 8.6% growth in 2006, according to the report.
Share this article:

More in News

Bill addressing admission status receives praise

A bill that would require hospitals to give patients a formal notice of their admission status has received strong support from healthcare associations.

Increased 'bed taxes' on nursing facilities warrant stricter federal oversight, report states

States have been increasingly taxing skilled nursing facilities and other healthcare providers to fund Medicaid in recent years, and federal authorities should look more closely at this trend, according to a government report released Tuesday.

Last chance: Tech Awards deadline arrives

Last chance: Tech Awards deadline arrives

There are hours left for innovative long-term care providers to enter the third annual McKnight's Excellence in Technology Awards. Submissions will be accepted until the stroke of midnight tonight.