The Paycheck Protection Program (PPP) has helped home care providers who received less than $ 150,000 in loans save more than 160,000 jobs nationwide, according to data from the Small Business Administration ( SBA).
States like Texas, California, and Florida saw the highest number of home care jobs retained thanks to the program. Meanwhile, unlikely suspects such as Idaho, Ohio and Missouri have seen P3 recipient agencies retain the most home care workers on average.
Home Health Care News discovered these trends by analyzing July 14 PPP data from the SBA. This data includes the number of workers employed by each PPP beneficiary, as well as the total loan amount given to each beneficiary.
For analysis, HHCN sorted federal SBA data by NAICS code to identify home care PPP recipients who received less than $ 150,000. From there, HHCN has broken down the data state by state.
The North American Industry Classification System, or NAICS, is a classification of business establishments by type of economic activity. NAICS codes are used by government agencies and businesses in Canada, Mexico and the United States
Home care providers in the HHCN analysis all include with NAICS code 621610, which is used for “establishments primarily engaged in providing skilled nursing home services.” In addition to home care and home health agencies, this includes businesses in areas such as home infusion therapy and home palliative care, among others.
In total, PPP loans have helped more than 15,000 home care agencies maintain a total of 160,175 jobs, the data shows. In other words, it is the total number of workers employed by these loan recipients, who otherwise could have gone bankrupt without the PPP money.
The HHCN has yet to review data from providers who have received more than $ 150,000 in PPP loans.
Explore: total number of jobs retained by state
This map shows the total number of home care jobs retained by P3 recipients in each state. Darker blues represent more jobs saved. Hover the mouse over a report to see the total number of jobs registered in it. (Graphic by Kosti Marko / Home health care news)
Contextualize the numbers
PPP was created by the CARES Act to help small businesses navigate the COVID-19 emergency. He has set aside billions of dollars in forgivable loans for businesses in many industries, including home health and home care.
One of the biggest goals of the program is to help companies keep their workers on the job. As such, an important condition of loan cancellation is that beneficiaries must maintain their staffing levels and salaries.
If a PPP loan recipient does not have a number of full-time employees equivalent to pre-coronavirus levels by December 31, that recipient will not be eligible for a full loan cancellation. He will have to reimburse part of the costs.
Therefore, the aforementioned SBA PPP employment retention figures assume that all PPP recipients will maintain the employment levels they had when they applied for their loans from Bridge. These data could be incomplete.
“PPP loan data reflects the information that borrowers provide to their lenders when applying for PPP loans,” an SBA spokesperson told HHCN in an email. “SBA cannot make any representation as to the accuracy or completeness of the information provided by borrowers to their lenders. Not all borrowers provided all of the information. ”
Additionally, it should be noted that some PPP home care recipients might not meet program requirements and lay off employees anyway.
Texas saw the highest number of home care workers retained through P3s loans, with 21,541 employees at recipient agencies.
California and Florida retained the second and third highest number of home care jobs. In California, that number was 19,186, while 11,039 jobs were saved in Florida.
These numbers make sense in the context of the large amount of P3 funding that Texas, California and Florida have received. In a previous analysis, HHCN found that these three states saw the highest number of agencies receiving loans, with more than 5,400 home care recipients collectively receiving about $ 224 million.
Meanwhile, the trends in Idaho, Ohio, and Missouri were more surprising.
For example, Idaho of all states has seen its 60 home care P3 recipients who earned less than $ 150,000 retain on average the highest number of employees, at around 20 each.
Meanwhile, Florida agencies, by comparison, have kept an average of just six jobs each.
While it’s unclear exactly why Idaho’s home care PPP recipients retained the most workers, Robert Vande Merwe, executive director of the Idaho Health Care Association, speculated that it could be the result of low wages.
“Idaho still has the federal minimum wage of $ 7.25 an hour,” Vande Merwe told HHCN in an email. “And the Medicaid rate is VERY low for home care.”
Joe Russell, executive director of the Ohio Council for Home and Hospice Care, had other ideas for his state, in which agencies kept an average of 17 jobs each thanks to P3 funding.
He said the average pay rate for a helper in Ohio was around $ 13 an hour.
“I would venture to assume that states that have more jobs saved are probably considering more and larger agencies getting those PPP loans,” Russell told HHCN.
This appears to be true in the cases of Idaho, Ohio and Missouri, which also saw agencies retain an average of 17 jobs each.
But agencies large and small in those states and beyond continue to need state and federal financial support in addition to P3s, according to the Missouri Alliance for Home Care.
“While PPP funds have greatly benefited some in the home care industry, the huge cost of additional personal protective equipment (PPE), decrease in usage, extra staff, overtime, premium risk, etc., have had a huge impact on the incomes of home care providers. Carol Hudspeth, executive director of the Missouri Alliance for Home Care, told HHCN in an email. “As a result, the home care infrastructure is in great jeopardy when it is needed most.”