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Pennsylvania Second Highest in Nation for Nursing Home Spending

Nursing Home Industry Continues to Distort State Funding

HARRISBURG, Pa., April 8, 2008 /PRNewswire-USNewswire/ -- With state payments to nursing homes up by more than $500 million in the past five years, Secretary of Public Welfare Estelle B. Richman today expressed continuing concern about misleading claims from nursing home industry representatives about the true financial health of Pennsylvania's nursing home facilities.

"Nursing home representatives seem to be using scare tactics to mislead lawmakers and the public into believing they are under-funded," said Richman. "The truth is that Pennsylvania's nursing homes are paid more than $3 billion by the state, considerably more than they are paid in Illinois, Texas, Florida and California - states with much larger populations than Pennsylvania."

In the past five years, payment rates for nursing homes have grown by 22 percent. The increase in total state dollars paid to nursing homes far exceeds increases in other critical areas including higher education, elementary education, child care, autism, mental retardation and community mental health.

"Far from the gloomy picture painted by the nursing home industry, Pennsylvania's reimbursement rates are already among the highest in the nation with rates more than 20 percent higher than the national average," Richman said. "In fact, according to recent data compiled by the American Health Care Association, payments to Pennsylvania nursing homes are the fourth highest of the 32 states that provided data for the study."

For more information on programs and services available through the Medical Assistance program, visit

CONTACT: Stacey Witalec

(717) 787-4592

SOURCE Pennsylvania Department of Public Welfare
Copyright©2008 PR Newswire.
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