Updated July 6 at 2:06pm

R.I. nursing home labor
costs rise by 13 percent

Rhode Island’s nursing labor expenses on a per patient, per day basis increased by nearly 13 percent, or approximately $27 million, during the period from 2009 to 2012, according to a recent report by consulting firm Blum Shapiro.

To continue reading this article, please do one of the following.



Sign up to receive Providence Business News' newsletters
and breaking news alerts.  

health care

R.I. nursing home labor
costs rise by 13 percent

Posted:

PROVIDENCE – Rhode Island’s nursing labor expenses on a per patient, per day basis increased by nearly 13 percent, or approximately $27 million, during the period from 2009 to 2012, according to a recent report by consulting firm Blum Shapiro.

The report, which analyzed patient mix, occupancy percentages, and labor and employee related expenses on a per diem basis at all of the 84 nursing homes in Rhode Island from 2009 to 2012, is intended to provide administrators and stakeholders with benchmarks with which to analyze their operations against the rest of the industry.

“With more than 84 facilities throughout the state, which together employ more than 8,000 full-time equivalents, the nursing home industry is of vital importance to the Rhode Island economy,” said Monica Motta, an expert on healthcare at BlumShapiro. “Though this report found that the industry itself has remained relatively stable, the landscape of the healthcare industry overall will be dramatically changing over the next several years, and we anticipate this will have a direct impact on nursing home facilities throughout Rhode Island.”

The report found that, though the industry itself remained relatively stable from 2009 to 2012, nursing labor expenses on a per patient, per day basis increased markedly.

During the period from 2011 to 2012, nursing home employee health insurance costs decreased by more than seven percent due to the increase in employee deductibles and health insurance contributions.

“This annual report serves as an important resource for our nursing home facilities administrators and managers to better understand not only the current industry, but also to be able to compare our overall operations to remain competitive with the industry standard,” said Hugh Hall, of West View Nursing Home in West Warwick. “By having access to a complete industry profile we are able to plan for anticipated workforce demands, attract top level talent and provide reliable and enhanced quality of care for our patients.”

Currently, Rhode Island has the nation’s fourth highest proportion of those aged 75 or older, representing nearly 8 percent of the state’s residents.

Blum Shapiro, BlumShapiro, West View Nursing Home¸

Comments

1 comment on this story | Please log in to comment by clicking here
Please log in or register to add your comment
wclark@portsmouthri.com

It's one thing to have the employees doing well, but the higher the costs for the facilities the more the daily rate goes up and becomes another reason why people will chose to leave the state for less expensive areas.

Thursday, January 2, 2014 | Report this
Latest News