Minnesota’s rural nursing homes are grappling with a growing access crisis, marked by a sharp decline in available beds and an increasing demand for services, according to a report released this week by the Center for Rural Policy and Development.
The growing shortage of nursing home beds in Minnesota, particularly in rural areas, is driven by several factors, including a shift in patient needs as assisted living facilities absorb more of the demand while nursing homes tackle higher acuity patients, but aren’t adequately reimbursed. Moreover, an ongoing workforce shortage is also compounding the problem.
The report states that the most common challenge noted by nursing care facility operators is their inability to find workers. One nursing home operator is quoted in the report as saying, “We are screening patients to make sure we have the workforce to meet their needs, and we are turning people away daily due to the lack of workers.”
Nursing homes are now mainly caring for residents with more acute and severe conditions, unlike in the past when some residents were more mobile and independent, according to the report’s Todd Berstrom from Care Providers of Minnesota, who is cited in the report.
This shift toward higher acuity care has increased the operational costs for nursing homes, but reimbursement rates have not kept pace, straining finances.
“The primary issue is that rural Minnesota is facing a historic shortage of workers overall. To combat this, employers in other industries have been able to increase their pay, benefits, and other incentives, strategies many nursing facilities can’t compete with since their rates are locked in via Medicare, Medicaid, and state policy,” Senior Researcher Kelly Asche noted in the report.
Rising costs and economic pressures are also leading to nursing home operators seeking economies of scale to offset the high costs of providing this more intensive care.
Researchers also conducted Interviews with nursing care operators in rural Minnesota, who highlighted the challenging business model facing these facilities.
Smaller, rural nursing facilities are particularly vulnerable, as they struggle to achieve economies of scale that could offset these rising costs. Data shows that rural nursing homes tend to be smaller and are more likely to close than their urban counterparts, exacerbating the bed shortage.
“Cost of supplies are up, wages are up, but payments have not increased enough… Lots of rural facilities are small and can’t cut anymore corners or scale down enough to make the finances work,” Kari Swanson, CEO of Cornerstone Nursing and Rehab Center said in the report.
