LTC employee turnover costs the nation billions every year.

A recent report from Better Jobs Better Care, a national research and demonstration program managed by the Institute for the Future of Aging Services, quantifies the financial impact of LTC employee turnover--and make no mistake, all Americans end up paying for it. LTC employee turnover's nationwide cost is roughly $4.1 billion annually, according to the report, a figure based on direct-care employees' 45% average annual turnover rate in an LTC workforce of roughly 2.6 million, with an average turnover cost of $3,500 per employee (including indirect and direct costs). Because Medicare and Medicaid pay 61% of LTC costs, taxpayers shell out about $2.5 billion for LTC turnover every year, and the report by labor economist Dorie Seavey concedes that these figures do not account for increased healthcare costs because of lower-quality care for consumers or higher injury-related medical costs for workers related to turnover. The report recommends that providers calculate their turnover costs to determine how their investments in retention efforts are affecting their financial situation.

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To read the report, visit www.bjbc.org/content/docs/TOCostReport.pdf.