Nursing Homes Cautiously Optimistic Post-Election, Reflecting on ‘Industry Friendly’ CMS Under Previous Trump Admin

Finance and operator voices alike are cautiously optimistic about prospects for the nursing home sector as the Trump administration prepares to enter the White House in January, alongside a Republican majority in the U.S. Senate that has historically been sympathetic to nursing home issues.

When it comes to the federal minimum staffing mandate, Cascadia Healthcare’s Chief Legal Officer and Executive Vice President of Corporate Affairs Steve LaForte sees the new administration doling out more favorable treatment – whether by supporting a complete reversal of the mandate or shifting toward more workforce development, rather than imposing a punitive, unfunded mandate.

“I think the lawsuit could result in a black and white treatment,” LaForte said of the mandate in an interview with Skilled Nursing News.

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Meanwhile, lobbying groups like LeadingAge and the American Health Care Association/National Centers for Assisted Living (AHCA/NCAL) say they are steadfast in working with Congress and the administration regardless of party affiliation.

Eric Mendelsohn, president and CEO of National Health Investors (NYSE: NHI), recalled during the company’s third quarter earnings call that Seema Verma, who headed the Centers for Medicare & Medicaid Services (CMS) during the first Trump administration, was “very industry friendly.” Mendelsohn was particularly impressed with reimbursement rate increases during Verma’s time in the role as well as the regulatory climate at the time.

“I’m cautiously optimistic that there will be someone similar to her in the new administration,” said Mendelsohn.

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Some operators are simply awaiting a change in environment that will come with a new administration regardless of party affiliation. LaForte said the Finance Committee, which oversees Health & Human Services (HHS) and the Medicare budget could likely be chaired by Idaho Republican Senator Mike Crapo, a “reasonable” and “very approachable” Congressman when it comes to skilled nursing issues.

Republican Senate more friendly toward industry

LaForte said Cascadia is optimistic to work with the new political alignment in Congress and in the executive branch to pursue more collaborative approaches to staffing, workforce development and oversight of the industry.

The industry has gotten a lot of traction with Sen. Crapo, LaForte said. Looking more broadly, LaForte said a Senate with a Republican majority is likely to be more friendly, more receptive to the industry’s issues than they’ve had in the last four years.

“[Sen. Crapo is] willing to hear and he’s willing to open the door,” said LaForte. “He’s very reasonable in his approach. Regardless of who’s in the White House, you’re going to have a little bit of a different world.”

Meanwhile, in the near-term, LeadingAge President and CEO Katie Smith Sloan said the organization will focus on working with the new administration to share LeadingAge’s agenda. The group will also get a better understanding of the administration’s goals when it comes to housing, aging, health and long-term care goals.

“As we learn more, we’ll have a better understanding of their potential impact on our members and those they serve – wherever they call home. That’s our top priority in the short term,” Smith Sloan said in a statement.

Near-term paths forward

LeadingAge is also monitoring changes in Congress resulting from the election, Smith Sloan said. There are many unknowns still, and LeadingAge will continue to assess and develop its advocacy approach to achieve its goals.

AHCA/NCAL President and CEO Clif Porter said the association is ready to offer solutions to protect and enhance access to high-quality care for residents.

“It is critical that our nation’s leaders prioritize, support, and invest in America’s seniors and their caregivers,” Porter said in a statement. “While we are eager to get to work, there is still much that can be accomplished before the end of the year.”

Porter urged lawmakers to pass legislation during the Lame Duck session to rationalize regulations, expand workforce development and increase access to care for seniors and individuals with disabilities.

“We look forward to collaborating with President-elect Trump and the 119th Congress on ways we can continue to advance quality care, address the growing caregiver shortage, and advocate for our growing elderly population,” said Porter.

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