There is estimated to be about 1.6 million people currently in nursing homes. This number is expected to quadruple in the next few decades as about 20 percent of the population is expected to be over 65 years by the year 2050.

The economy and function of a nursing home can possibly be thought of as a microcosm of the larger economy and as a result there are many lessons that can be learned about the economy of the state or country by how a properly run nursing home is functioning.

Here are two such ways that can show these:

Life expectancy

Life expectancy can be shortened during a stay at a nursing home. Oddly enough, this seems to happen when there is a boom in the economy. It is believed that during the times when the economy is doing well and jobs are available, there is a decline in skilled nursing and nursing aid staff at nursing homes.

This can result in lower quality of actual care within the nursing home which can lead to an increase in deaths. Patients may not be allowed as great a level of personal empowerment which can also lead to a decrease in the will to live.

In order for nursing homes to mitigate this potential problem, it is best during times of well-being in the economy to offer nursing staff even better compensation packages which can facilitate higher retention. It is also a good proactive measure to encourage volunteerism within the community so that there are adequate numbers of caregivers available within your establishment.

It's all in the money

Long-term care of patients is paid for by medicaid if the patient qualifies. However, in many cases medicaid only pays about $179 a day per person which can often mainly be spent mainly on such areas of care as staffing, medication and food. This then, can leave many of the facilities with less funds for such needs as building maintenance and insurance.

During times when the economy is good, this money may be able to do more than in economic downturns when the price of things may be increased. The way the money is spent can also either qualify them for a bonus or a budget cut from medicaid.

Nursing homes with these considerations need to get a balance of patients between medicare and medicaid. They can also solicit funding through fund raising and patrons to meet their expenses. To learn more, contact a company like Diamond View Assisted Living with any questions or concerns you have.