Nursing Home Industry Profit Report Issued
Last Five Years Nursing Homes Have Realized $1.8 Billion In Profits
Albany, January 11, 2001 – According to financial data released today by the New York State Health Department, both proprietary and voluntary nursing homes realized significant profits/surpluses during calendar year 1999. Profits realized by the nursing home industry in 1999 totaled $354 million. Over the past five years, including the profits generated in 1999, nursing homes have taken in more than $1.8 billion in profits and surpluses.
The Health Department's annual financial report on nursing homes provides detailed fiscal information on residential health care facilities in New York State, including profits, owner equity withdrawals and owners' salaries.
The annual report released today is based upon the facilities' financial statements that have been filed with the Department. It revealed that 273 proprietary homes, which are for–profit corporations, recognized net profits of $201 million, in addition to the $281 million realized from the previous year. It also showed that owners of 272 of those homes withdrew $215 million in equity during 1999, on top of the $243 million withdrawn in 1998.
The 233 not–for–profit, or voluntary, nursing homes that reported showed an overall surplus of $64 million, in addition to the $121 million realized in 1998. These facilities showed a surplus, rather than a profit, because they are not–for–profit entities.
In addition, 31 public nursing homes, which are those sponsored by local governments, reported a surplus in 1999 while nine operated at a deficit. This resulted in an $88 million net gain, $8 million above the 1998 gain.
During 1999, owners' salaries – which often involve payment to more than one individual – accounted for more than $43 million, in addition to the $42 million paid to owners in 1998.
Combined, the profits and owners' salaries realized by the nursing home industry in 1999 totaled $397 million. In addition, nursing homes are expected to get increased revenues from the recently announced federal Balanced Budget Act which is expected to provide an additional $100 million for nursing homes in New York State.
There are 676 licensed, free–standing nursing homes in New York State. Not all facilities reported financial data to the Department of Health in time to be included in this report.
The following chart details, by region, the financial activity of nursing homes in New York State in relation to profits realized, salaries paid an equity withdrawals made during 1999.
|New York City||161||$159.5||$23.4||$105.3|
The following chart summarizes nursing home profits by region for the past five years.