Nursing homes facing ‘the worst financial crisis in the history of the industry’
Rising COVID costs and persistent reimbursement woes have 90% of almost 1,000 U.S. nursing homes operating at a loss or on a profit margin of under 3%, according to survey results released this week.
If these costs continue to rise at the present pace, two-thirds of the homes expect to fail within 12 months.
The survey was conducted by the American Health Care Association and National Center for Assisted Living (AHCA/NCAL), which together represent more than 14,000 facilities caring for seniors and people with disabilities, according to press materials.
The groups report the steepest single area of expense for the surveyed nursing homes is staffing:
- 94% of 953 respondents have paid staff for overtime hours or double shifts.
- 86% have paid bonus (hero) pay.
- 68% have hired additional staff.
By comparison, PPE is a leading financial drain for 26% of the 953 and testing a top cost for only 12%.
“Our nursing home providers are facing the worst financial crisis in the history of the industry due to increased costs related to COVID and chronic underfunding of Medicaid,” says AHCA/NCAL president and CEO Mark Parkinson. “Without adequate funding and resources, the U.S. will repeat the same mistakes made during the initial outbreak last spring.”
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.