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Survey: 66% of Nursing Homes Won’t Make it Another Year

At current operating pace due to increased COVID costs

Ross Madison by Ross Madison
5 years ago
in Economy
Survey: 66% of Nursing Homes Won’t Make it Another Year
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Survey: 66% of Nursing Homes Won’t Make it Another Year

Audio Assist Version

https://scdn-web.sciotocountydailynews.com/wp-content/uploads/2020/12/Thu-Dec-17-2020-mp3cut.net_.mp3

Below are key findings of a survey that the American Health Care Association and National Center for Assisted Living (AHCA/NCAL) recently conducted of nursing home providers across the U.S.

Key findings outlined in the letter on why long term care facilities should receive the vaccine first include:

  • Two-thirds (66%) of nursing homes say they won’t make it another year given the current operating pace due to increased COVID costs.
  • 90% of nursing homes are currently operating at a profit margin of 3% or less. (65% of nursing homes are currently operating at a loss).
  • Staffing has been the top cost in response to COVID with nine out of 10 nursing homes hiring additional staff and/or paying staff overtime.
  • 58% of nursing homes said additional staff pay and hiring new staff were their top cost incurred due to COVID.
  • 70% of nursing homes have hired additional staff and nine out of 10 have asked current staff to work overtime and provided hero pay.

In a statement from Mark Parkinson, President, and CEO, AHCA/NCAL on the survey and reinforcing the need for Congress to pass another COVID relief package to replenish the U.S. Department of Health and Human Services (HHS) Provider Relief Fund, which is nearly out of resources to help hospitals and nursing homes respond to the record number of cases in the community and within our facilities.


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“Our nursing home providers are facing the worst financial crisis in the history of the industry due to increased costs related to COVID (testing, personal protective equipment, staffing) and chronic Medicaid underfunding. Without adequate resources, the U.S. will repeat the same mistakes made during the initial outbreak last spring. We need Congress to prioritize our vulnerable seniors and their caregivers in long term care facilities, by passing another COVID relief package right away.”

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  • Nearly half (45%) have increased overtime payment amounts.
  • Over half (58%) have increased payroll taxes for workers by 25%
  • Only 29% of nursing homes have increased employee health insurance premiums
  • Only 3% have increased co-payments for skilled nursing services.
  • 68% of nursing homes have considered additional financing for COVID expenses.
  • 51% of nursing homes have considered selling

“Long term care providers need financial stability and certainty in order to meet resident needs, but with the current state of nursing home finances, they do not have it,” said James Binnall, AHCA/NCAL Senior Vice President and Chief Advocacy Officer. “The current administration has taken steps to improve funding for the Medicare program, which was always insufficient, and to support behavioral health and long-term care through programs and initiatives, including those aimed at the elderly. If proven effective, they can begin to address the greatest financial challenge for nursing homes—the rising cost of COVID. While we await progress in these areas, nursing homes will continue to struggle with delivering high-quality services while meeting ever-increasing financial costs.”

Survey: 66% of Nursing Homes Won’t Make it Another Year Survey: 66% of Nursing Homes Won’t Make it Another Year



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