Long-Term Care Workforce Investment, Medicaid Boost, Could Pay ‘Huge Dividends’

During a discussion to drive home the importance of more government funding for the aging services space, providers across the long-term care continuum, skilled nursing among them, said they are having to turn away referrals due to dwindling staff.

President and CEO of LeadingAge Texas George Linial said 60% of his members have been unable to hire enough nurses, and 70% are unable to hire more certified nursing assistants (CNAs). Linial was one of five speakers at a virtual press conference on Tuesday, led by senior care advocacy group LeadingAge.

“Just that in itself magnifies the problem,” Linial said, adding that about 60% of members have also had to use agency staff in the last six months, a trend he says has a “profound impact on quality.”

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“It just puts that much more pressure on the remaining staff that are there to take care of residents, and it just sort of compounds the problem,” Linial noted during the press event.

Tom Egan, president and CEO of the Foundation for Senior Living (FSL) in Phoenix, Ariz., said one in five of the home care nonprofit’s members have had to restrict admissions due to staffing issues, adding that the issue is “particularly acute” in rural areas.

A ripple effect is happening based on the staffing shortage too, Linial said, pointing to an AARP study showing 17% of Americans are caring for someone at home as a result of the staffing shortage.

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The study also found that 28% of these caregivers have stopped saving financially, 23% have had to take on more debt and 22% have used up their entire personal short-term savings.

“It is a situation that affects much more than just a caregiver, and much more than just the patient,” noted Linial.

Financial support, starting with expansion of Medicaid reimbursement and an overhaul of the skilled nursing workforce could pay “huge dividends.”

Six U.S. senators introduced the Nursing Home Improvement and Accountability Act of 2021 at the beginning of August, which includes an increase in Medicaid funding. Funds are listed as “temporary” in the legislation, and increases are limited to a six-year timeframe.

The bill would match Medicaid to fund “workforce and care improvements” based on a state’s Federal Medical Assistance percentages (FMAP). States would improve wages directly through the Medicaid boost, along with training resources and staff advancement opportunities.

“I was thinking about the topic of Medicaid and nursing homes, and took a little bit of a step back, I thought, why would anyone be in a business where you are mandated as we are in New Jersey to have 45% of your clients pay less than what it costs you to provide services?” asked Carol Silver-Elliott, president and CEO of Jewish Home Family, referring to Medicaid reimbursement rates in the state.

Jewish Home is reimbursed almost $200 less per day than what it costs them to provide services to Medicaid beneficiaries, Silver-Elliott said during the telepress conference.

The proposed legislation suggests states receive a 3-percentage point increase to their federal match for four years, 2-point increase for one year, and 1-point increase in the final year of the six-year proposal.

“It is so important that our legislators recognize that our older adults are entitled to the care that they desperately need. And that we need as providers the support to do that, but do it well so that people can have the care that they so so justly deserve,” added Silver-Elliott.

Silver-Elliott, who also serves as chair of the LeadingAge Board of Directors, called on U.S. Rep. Josh Gottheimer (D-N.J.) to make a difference on how this legislation moves forward and hopes to see some “real progress in the next few weeks.”

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