FACT CARD 1: ECONOMIC IMPACT OF LONG-TERM CARE CHANGE IS IMPERATIVE 2011

Economic Impact of Nursing

Homes and Assisted Living
Establishments in Minnesota
(in billions)1

112,600
$1.80 Direct
$1 $3.90 Indirect
Induced

Nursing homes and assisted living establishments are
community assets that strengthen local economies.
Discussions of older adult services tend to focus on the cost
side of the financial equation. But the fact is, nursing homes
and assisted living establishments make significant, measurable
and vital contributions to the state and local economies while
providing critical services to our aging population.
Nursing homes and assisted living establishments
support 112,600 Minnesota jobs and contribute
$6.7 billion to the state economy2:
• $3.9 billion in direct economic activity
• $3.2 billion in labor income and $1.1 billion in state,
federal and local tax revenue
• Nursing homes and assisted living establishments are
often the largest employers in rural Minnesota
communities.

CHANGE IS IMPERATIVE 2011

 An investment in older adult services is an investment Occupations with Most New Jobs (2009 –2019)4
in a vital growth industry that creates much-needed
0 5,000 10,000 15,000 20,000 25,000
jobs statewide.
Changing demographics mean demand for nursing homes and Personal and Home Care Aides
assisted living will continue to grow, spurring additional job Home Health Aides

growth in older adult services and increased economic vitality for Registered Nurses

local communities throughout Minnesota. More than 70 cents of Combined Food Preparation and Serving Workers,…
Customer Service Representatives
every dollar spent by providers goes directly to wages and
Office Clerks, General
benefits for the over 112,000 employees in Minnesota. Those
Retail Salespersons
wages are a significant contributor to the local economy in Truck Drivers, Heavy and Tractor-Trailer
hundreds of communities. Nursing Aides, Orderlies, and Attendants
Business Operations Specialists, All Other
Wages and Benefits as a Licensed Practical and Licensed Vocational Nurses
Percentage of Operating Costs3 Accountants and Auditors
Social and Human Service Assistants
Hairdressers, Hairstylists, and Cosmetologists

24% Computer Software Engineers, Applications

Child Care Workers
Carpenters
76%
Waiters and Waitresses
Elementary School Teachers, Except Special…
Executive Secretaries and Administrative Assistants
Wages and Benefits Other Costs

DATA SOURCES:
1. Economic impact analysis prepared for the American Health Care Association by The
Lewin Group analysis using the Impact Analysis for Planning (IMPLAN), January 2009.
2. Older Adult Services in Minnesota: An Analysis of the Economic Impacts from Potential
Funding Reductions. Prepared for The Long-Term Care Imperative by ECONorthwest.
March 18, 2009.
3. 9-30-2008 Medicaid Cost Report, freestanding nursing facilities.
4. Minnesota Department of Employment and Economic Development, Labor Market
Information Office
About The Long-Term Care Imperative
The Long-Term Care Imperative is a collaborative effort between Care
Providers of Minnesota and Aging Services of Minnesota, the state’s
two long-term care provider associations. Our goal is to advance a
shared vision and future for older adult housing, health care, and
supportive services.

FACT CARD 1: ECONOMIC IMPACT OF LONG-TERM CARE CHANGE IS IMPERATIVE 2011