With more than half of nursing homes currently operating at a loss, only a quarter are confident that they can last a year or more.
That’s according to a survey of 616 skilled nursing facilities conducted by the American Health Care Association and National Center for Assisted Living (AHCA/NCAL). The organization posted its findings on Tuesday.
About 84% of nursing homes are seeing fewer post-acute patients coming from the hospital, resulting in a loss in revenue, the survey found. The pandemic has cost SNF operators dearly as they contend with rising expenses and reduced referrals.
Operators said the top three costs related to the pandemic were additional pay for workers, hiring more staff and paying for personal protective equipment (PPE). These rising expenses came at a time when skilled nursing referrals were dropping as more care moved into the home setting due to fears of spreading the virus or losing access to family members amid tight restrictions on visitors.
Skilled nursing facility referrals dropped to 19.1% in 2020, down from 21.5% the prior year, according to a report by the Atlanta-based health analytics company Trella Health.
In contrast, home health referrals rose to 23.6% in 2020 from 21.1% in 2019, Trella indicated.
The survey respondents also raised concerns about Medicare reimbursement. When asked about fee-for-service, more than half of SNF operators said the payment model is “problematic” in covering resident care; more than one-quarter called it a “serious problem.”
Upwards of 1,800 facilities could close their doors as the pandemic continues, forcing residents to move and families to travel farther to see loved ones — while staff are out of a job, according to an analysis conducted by AHCA/NCAL earlier this year.
The same analysis estimated a $94 billion loss for the skilled nursing industry from the pandemic.
“Too many facilities are operating under shoestring budgets simply because policymakers have failed to dedicate the proper resources, and this can have devastating consequences,” Mark Parkinson, president and CEO of AHCA/NCAL said in a statement. “Lawmakers and public officials across the country must prioritize the residents and caregivers in our nursing homes and assisted living communities.”
Parkinson, a former governor of Kansas, called for immediate increases to the Provider Relief Fund, as well an influx of dollars for Medicaid in the long term.
Some of these solutions were included in the Care for our Seniors Act, a policy proposal from AHCA/NCAL and senior care advocacy group LeadingAge. To date, the proposal hasn’t been introduced as legislation.
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