✯ ✯ 2003 National Health Policy ✯Conference January 22-23, 2003 J.W. Marriott Washington, D.C. Critical Workforce Issues in Long Term Care Carol Raphael, President & CEO Visiting Nurse Service of New York 2003 National Health Policy Conference, Washington, D.C., January 2003 1 Demand for Long Term Care Services 2 Demand: Demographic Trends • “Baby boom” generation to retire in 2010 • There are 32 million people aged 65+ – By 2030: • 70 million will be over 65, or • 1 in 5 people • Number of people aged 85 and over will double to 7 million in 2020: – This number will double again to 14 million by 2040 3 Demand: Service Trends • As population ages: – Greater use of LTC services – Expansion of home and community-based care and residential settings – Need for assistance with A.D.L.s and I.A.D.L.s • 40% (8.5 million) of those aged over 70 have at least one A.D.L/ I.A.D.L. – May increase to 21 million by 2030 • By 2050, over 25 million people will be limited in activities and need assistance 4 LTC Workforce Compared with Other Health Care Sectors • Role of: – Nurses in home and community-based system – Paraprofessionals: • Provide 70-90% of direct care to the elderly – Informal caregivers: • Family members comprise 70% of caregivers – 42% are adult children and 25% are spouses • May precede, accompany or substitute for formal care • National economic value: – $257 billion annually* – 1 in 4 households *Source: National Family Caregivers Association per HCFA, Office of the Actuary, Levit K. et al, Health Affairs 2002;21 5 LTC Workforce Compared with Other Health Care Sectors, continued • Role of: – Patient/customer preferences: • Control • Security • Knowledge • Length of Relationships • Cultural Diversity • Proxy for Quality 6 Supply: Who Comprises the LTC Workforce? 7 Profile of the LTC1 Workforce Nurses 1. Number 512,0003 2. Average Age5 44 3. % racial/ethnic minority6 10% 4. Earnings7 1Defined $42,071 Paraprofessionals Informal Caregivers2 615,000 54 million4 45 47 85% - 90% 49% < $10,000 - $14,000 $0 as the chronically ill, disabled or elderly population who need some type of social or medical care; 2Caregivers who provide care to the LTC population as defined in this chart. 3Assumes that 20% of total licensed RNs (or, 2.558M RNs per MinorityNurse.com) are in LTC; 4Source: National Family Caregiving Association survey, 2000; 5Sources: Family Caregiving Alliance, Direct Care Alliance; 6Sources: MinorityNurse.com, Direct Care Alliance, Navaie-Waliser, M., American Journal of Public Health, 2002; 7Source: same as footnote 6. 8 Macro Factors Affecting Supply Formal • • • • Labor Market Health Care Policy Immigration Welfare Policy Informal • Women in workforce • Family size • Mobility 9 What Affects Both Formal & Informal Caregivers • Key Point: Widening Gap Traditional Supply of Paid & Non-Paid Caregivers is Shrinking 12% 10% 8% By 2010 11% 6% 4% 2% 0% -2% Women Aged 25-44 Women Aged 65+ -4% -4% -6% 10 Source: Bureau of Labor, 2000 Main Factors in RN Supply • Shrinking Pool: – Less enrollment in nursing schools – Other career opportunities – Nursing education focused on acute care – Under-representation of minorities – Gender issues 11 Main Factors in RN Supply, continued The Aging of the RN Workforce 2500 2000 60s 50s 40s 30s 20s 1500 1000 500 0 1980 1990 2000 (proj.) 2010 (proj.) Source: American Hospital Association: Trend Watch, June 2001, Vol. 3, No. 2 *Number of RNs in thousands 2020 (proj.) 12 Main Factors in RN Supply, continued • Working Conditions: – Complex patients with multiple conditions and comorbidities – Increased regulatory burden & required documentation – Need to keep up with rapid advances in medicine and technology – Interaction with family dynamics – Role as “care manager” 13 Main Factors in RN Supply, continued • Results: –High turnover –High vacancy rates –Increased retirement rate 14 Paraprofessional Supply Issues Projected Paraprofessional Shortage by 2010 Demand 907 634 Supply 0 200 400 600 800 1000 In thousands Source: Bureau of Labor, 2001 and Paraprofessional Healthcare Institute 15 Paraprofessional Supply Issues, continued 2. Working Conditions: – – – – – – Compensation Benefits Difficult to get steady, full-time employment Lack of career mobility Little respect and recognition Demanding job: • High rate of injuries • Unpleasant tasks 16 Paraprofessional Supply Issues, continued • Results: – High turnover rates: • 94% - 100% in SNFs • 32% in home health care – Unionization efforts 17 Family Caregiver Supply Issues Family Caregivers per Person Needing Care 12 10 8 11 63% Decrease in Supply 6 4 4 2 0 1990 Source: Family Caregiving Alliance 2050 18 Family Caregiver Issues • Other Issues: – Hard to navigate health system – High stress levels – Burdens: • Financial: – Change of work status » Missed work » Decreased productivity » Loss of job or career opportunities • Emotional: 51% suffer from depression • Physical: 49% have one + chronic conditions 19 Options A. Provider/Industry Initiatives: – IOM Study – Nursing Homes • Wellspring – Home & Community-Based Initiatives • Visiting Nurse Service of New York – Work: » Redesigning job – Recruitment & Retention: » Strengthening training » BSN Internship program » Improving paraprofessional benefits – Support: » Mentoring » Giving employees “voice” 20 Options, continued B. Policies 1. Formal Caregivers: • Federal Level: – Nursing home staffing ratios – Public disclosure of quality indicators • State Level: – Wage and benefit pass through – Training – Career advancement – Transportation reimbursement 21 Options, continued 2. Policy Strategies for Informal Caregivers: – Financial incentives • Tax breaks – Consumer Directed Options • “Cash and counseling” model – Supportive Services • Respite Care • Information • Assistance with access 22