The data in the following table comes from a variety of sources, and it's impossible to tell if all of them were referring to exactly the same facilities and residents, so it is imprecise. However, it probably is good enough to create a very general picture of nursing home utilization and expenditures in the mid-twentieth century. The explosion in utilization and costs that took place after FHA financial assistance for nursing home construction was made available in 1959 and again after Medicare and Medicaid were enacted in 1965 is obvious. Also note that the percentage of the cost borne by the federal government increased far more than that borne by state and local government. (IOM, NCHS, CMS)
Size of Total and Age 65+ Population 1950-1970 | U.S. Population | 1950 | 1960 | 1970 |
|---|
| Total population | 151,000,000 | 179,000,000 | 203,000,000 |
| Population age 65+ | 12,300,000 | 16,500,000 | 20,000,000 |
| Age 65+ / total population | 8.1% | 9.2% | 9.8% |
Nursing Home Supply and Utilization in 1954, 1963, and 1969 | Nursing Home Supply and Utilization | 1954 | 1963 | 1969 |
|---|
| Number of nursing homes | 9,000 | 13,100 | 15,300 |
| Number of beds | 260,000 | 507,500 | 879,000 |
| Number of residents | 260,000 | 470,000 | 793,000 |
| Nursing home residents / 65+ population | 2.1% | 2.8% | 3.9% |
National Nursing Home Expenditures in 1950, 1963, and 1969 | National Nursing Home Expenditures | 1950 | 1963 | 1969 |
|---|
| National spending on nursing homes (millions) | $187 | $1,055 | $3,567 |
| Expenditures per resident | $700 | $1,800 | $5,300 |
Federal/State/Individual Share of Expenditures in 1950, 1963, and 1969 | Federal/State/Individual Share of Expenditures | 1950 | 1963 | 1969 |
|---|
| Federal direct payments for care | 0% | 18% | 24% |
| State/local direct payments for care | 10% | 13% | 14% |
Non-government payments for care
(includes government payments to individuals) | 90% | 69% | 62% |