A new study by California's Office of Statewide Health Planning and Development found that net income among the state's long-term care operators grew from $70 million in 2003 to nearly $448 million in 2007, Payers & Providers reports.
According to OSHPD, about $250 million of the net income increase is directly related to patient care.
The study also found that between 2003 and 2007, revenue for long-term care facilities grew at an annual rate of 8.2%, compared with 7.1% for acute-care hospitals.
The study partially attributes long-term care providers' net income and revenue growth to the passage of a 2004 bill (AB 1629) that increased Medi-Cal reimbursements for long-term care. Medi-Cal is California's Medicaid program (Payers & Provider, 6/17).