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Snapshot: The Changing Face of California's Nursing Home Industry

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Publication Date: March 2007

Publisher(s): California HealthCare Foundation

Topic: Health (Hospitals and other health care facilities)

Type: Brief

Coverage: California

Abstract:

California's nursing home industry is facing the "perfect storm" -- increased projected demand for services by an aging population while quality of care appears to be declining and staff turnover is on the rise. This snapshot examines the state of California's freestanding and hospital-based nursing and intermediate care facilities as they continue to face significant challenges. The snapshot presents a range of data and trends including patient demographics, supply and demand, quality of care indicators, staffing, regulatory compliance, and financial information. Findings include:

*Nursing staff turnover, which had been declining in recent years, is once again on the rise, reaching 62%. High turnover is associated with poor quality, including disruption to continuity of care. *The percentage of nursing homes meeting or exceeding the state-mandated minimum level of nursing care more than doubled from 2000 to 2005, yet some 22% still did not meet the requirement. *A third of California's nursing homes operate in the red. *Indications of poor quality include weight loss, time spent in bed, and use of physical restraints (more than twice the national average). *California's troubled oversight process underestimates serious care violations.

Increased Medicaid reimbursement and litigation judgments after 2005 may help moderate these troubling trends, along with continued oversight and review of publicly available information.