Spending for long-term care grew 3.1% in 2009, CMS report finds
Financial outlook is grim for not-for-profits, analyst says
U.S. healthcare spending for freestanding nursing care facilities and continuing care retirement communities expanded by 3.1% in 2009 to $137 billion, according to a report from the Centers for Medicare & Medicaid Services. This represents a deceleration from growth of 5% in 2008.
Overall, U.S. spending on healthcare increased by 4% in 2009, its slowest rate in 50 years. The report attributes this rate to slower private spending on healthcare services due to the recession. Medicaid spending rose by 9% in 2009, up from 4.9% in 2008.
Meanwhile, spending for hospital services climbed 5.1% in 2009. That compares to 5.2% in 2008. Private spending rose only 2.7%. The study notes that consumers lowered their use of hospital service due to lower income or loss of employer-provided insurance coverage. Also, hospitals saw reduced non-operating income and access to capital because of the recession.