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Medicaid Tops Funding for Nursing and Residential Care Facilities

     Medicaid continued to be the largest source of funding for nursing and residential care facilities in 2007 at $59 billion, according to the U.S. Census Bureau.

     These tabulations come from the 2007 Service Annual Survey: Health Care and Social Assistance, which focuses on health care and social assistance providers for individuals, and gives estimates and sources of revenue for businesses with paid employees.

     Overall, health care and social assistance revenue increased 6.8 percent in 2007 to $1.66 trillion, up from $1.56 trillion in 2006.

     Revenue for continuing care retirement communities grew 10.1 percent to $20 billion. These communities include establishments that provide a range of residential and personal care services, including on-site nursing care and assisted-living facilities. Homes for the elderly, which do not include on-site nursing care facilities, saw their revenues increase by 7.1 percent to $14.5 billion.

     Revenue for hospitals grew 6.5 percent in 2007 to $687 billion. Revenue for physicians' offices increased 5.6 percent to $346 billion and revenue for dentists' offices increased 6.5 percent to $94 billion.

     Medicare was the leading source of revenue for kidney dialysis centers, reaching $9.1 billion in 2007, a 10.4 percent increase from 2006.

     Revenue for emergency and other relief services decreased 13.2 percent to $6.9 billion in 2007. This is the second year in a row revenues decreased. Revenue has now returned to a level roughly equivalent to that of 2004.

     The Service Annual Survey (SAS) provides data that help to measure America's current economic performance. Using a sample of about 70,000 service companies, the SAS collects revenue, expenses and e-commerce sales.

     The services provided by establishments in this sector are delivered by professional, trained health practitioners or social workers. Excluded from this sector are aerobic classes; amusement, gambling and recreation industries; and nonmedical diet and weight reduction centers. Although these can be viewed as health services, they are not typically delivered by trained health practitioners.

The estimates provided in this release are based on data from the 2007 Service Annual Survey, which use the 2002 North American Industry Classification System and apply only to employer firms. Estimates contain sampling and nonsampling errors. To keep the identity of an individual firm confidential, some estimates may be suppressed. Users making their own estimates, based on the survey estimates, should cite the U.S. Census Bureau as the source of the original estimates only. See <> for measures of sampling variability and other survey information.
Source: U.S. Census Bureau | Public Information Office | | Last Revised: September 09, 2014