Nursing Homes in New Jersey: Past, Present & Future

A new report was released by the New Jersey Nursing Home Profile to illustrate the significant value that the Nursing Home Industry adds to New Jersey. In 2013, the industry added just over $5.4 billion in expenditures, near 56,000 full time jobs, contributed at least $116 million in state income taxes, and provided $2.1 billion in salaries to the economy.

According to the report, more than half of New Jersey’s nursing home residents receive financial assistance from Medicaid (58.4%). However, because Medicaid pays .82 cents on a dollar, there is a $500 million shortfall in the industry.

The 389-page report also breaks down the annual contributions of each facility in all of New Jersey’s 21 counties. Roughly 55% of nursing homes in the Garden State have a four-star rating or higher; leaving the remaining 45% at a three-star or lower.

Theresa Edelstein – Vice President of post-acute care policy and special initiatives for the hospital association – hopeful that this information is helpful for work at the local and state level for legislators, hospitals, physicians, ACOs, bundling partners and other stakeholders in New Jersey.

The impact nursing homes have on New Jersey’s economy is significant; especially considering that Democrats in the state are currently trying to get a bill passed to set new minimum staffing requirements for aides. Furthermore, as the baby boomer generation continues to age, the need for nursing home services statewide will continue to increase.The New Jersey Hospital Association (NJHA) reports that “New Jersey’s elderly population is projected to increase by 27.2 percent between 2010 and 2020, and by an additional 27.1 percent between 2020 and 2030, yielding approximately 1.9 million elderly residents by 2030.” See figure 1 below:



Dansky Katz Ringold York: Nursing Home Blog Graph

Outlook for nursing home services in New Jersey


The Bureau of Labor Statistics (BLS) indicates that Home Health Aide is one of the fasting growing occupations. There will be over a 38% growth for this occupation in the next ten years. While this is extremely important when considering that boomers will have a greater need for nursing home services, it should be noted that the median annual salary for aides was just over $21,000 in 2014. The proper allocation of funds has always been a hot debate in the nursing home industry, and is yet another trend that will continue to be on the rise.

“Nursing homes are critical to providing quality service throughout the healthcare continuum and are major stakeholders in the state’s economy,” said NJHA President and CEO Betsy Ryan. “We must ensure that the frail and elderly residents of New Jersey can count on quality, accessible nursing home care.”

We can only hope that New Jersey continues to strive for nothing less than the very best care for our fellow senior citizens. This is why we are dedicated to fighting for your family and ensuring that nursing homes are held accountable for treating our elders with the best care.

If you have any questions about nursing home negligence, please feel free to contact us to learn more.






Nursing Homes Major Player in NJ Economy, New Jersey Hospital Association

Anjalee Khemlani, Nursing Homes are $5.4B business in N.J., report finds, NJBIZ

Theresa Edelstein, New Jersey Nursing Home Profile, New Jersey Hospital Association

Employment Projections, Fastest Growing Occupations, Bureau of Labor Statistics

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