Summary: Statistics on nursing home usage and costs from 1950-1970.
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.
| 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 | 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 | 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 | 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% |
As compared to the earlier table of the institutionalized population, this table now includes only "nursing homes" and excludes people in facilities for the mentally ill or those in custodial, or board and care homes. Data on the number of homes and residents comes from estimates made by the Institute of Medicine and Master Facility Inventories done by the National Center for Health Statistics (NCHS). Census data is from the U.S. Bureau of the Census. Current Population Reports, Special Studies, P23-190, 65+ in the United States. (U.S. Government Printing Office, Washington, DC, 1996).Nursing home expenditure data is from the IOM report and from National Health Expenditures tables posted on the web site of the Centers for Medicare and Medicaid Services.