Charlene Harrington, Ph.D.
Anders Kvale Havig, Ph.D.
Justin Panos
MCRI Conference May 2014
Bergen, Norway
120%
4%
6%
100%
80%
60%
68%
0%
53%
Non-profit
90%
40%
20%
For-Profit
26%
26%
6%
US
Public
21%
Ontario
Norway
5%
3% 3%
Care workers
60%
Supplies etc
Capital & Buildings
25%
Food and Dietary
Laundry,
Housekeeking, Utilities
No profits reported
4%
Administration
Sample of 22 Nonprofit Facilities out of 992 NHs –
average 62 residents and $9,555,808 expenditures
per facility in 2009. Study by Anders Kvale Halvig
18,000,000
16,000,000
14,000,000
Gross Profit
Expenditures
$272,750
$187,583
12,000,000
$271,960
$133,982
114,331
4,291 NHS 2006 and 4,633 NHs in 2010.
Average 57 beds per facility
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
2005-06
2006-07
2007-08
2008-09
2009-10
Canadian Residential Care Facility Survey (CANSIM)
http://www5.statcan.gc.ca/cansim/a05?searchTypeByValue=1&lang=eng&id=1075507&pattern=1075507
California Office of Statewide Health Planning & Development
Cost Reports -881 to 872 nursing homes Average size 89 beds
90%
80%
70%
60%
50%
40%
9%
8%
9%
8%
22%
22%
21%
21%
11%
12%
12%
13%
30%
20%
Capital
Support & Other
Ancillary
Nursing
39%
38%
36%
36%
2007
2008
2009
2010
10%
0%
California Office of Statewide Health Planning
25%
& Development Cost Reports
Profits
20%
Administration
3%
5%
16%
15%
6%
6%
16%
16%
15%
10%
5%
Administration – range 4% to 60%
Profits – range -35% to 120%
0%
2007
2008
2009
2010
8%
6%
Profit
16%
21%
Administration
Nursing & Therapy
Support & Other
49%
Capital
Source: California Office of Statewide Health
Planning & Development Cost Reports

Canada & Norway
◦ have smaller facilities
◦ government payments are more restrictive
◦ profits are low or non-existent in non-profit
facilities

US uses prospective payment
◦ US NHs can shift money from care to profits.
◦ Profits and administrative costs are high - 22%

More transparency is needed on where the
money goes