Economic Impact of the Minnesota Nursing Home Industry

Abstract

The Minnesota Nursing Home Industry has developed rapidly since the end of World War II. The industry in 1943 had 137 institutions with 3,905 beds. By 1986, the industry had expanded to 447 institutions with 44,956 beds. Estimates for 1989 show the industry 447 institutions with 44,956 beds. The industry currently employs 47,585 people and spends in the state $1,252,223,000 (see Table 1). The demand for nursing home care continues to grow much more rapidly then the population. A greater percentage of the Minnesota population are reaching the age of 65 and are living well beyond this age. In this paper the impact of the nursing home industry on the Minnesota economy will be developed. In addition, the paper will also estimate the job creation potential that the industry currently seems to demonstrate.