California’s Nursing Homes Could Save Over $1B in Capital Investments if Law is Blocked

California Gov. Gavin Newsom is seeking to delay implementation of a law requiring nursing homes to maintain 96 hours of backup power, which will save the sector $1 billion in capital investments in the state.

Federal regulations require such emergency plans be in place for nursing homes, but states vary in mandates. Florida, for instance, enacted a law after Hurricane Irma requiring generators to maintain safe temperatures for four days. Maryland and Virginia have similar requirements, and Texas is considering its own legislation.

The law, signed by Newsom in 2022, was meant to protect residents during power shutoffs caused by wildfires or grid failures. It would significantly expand the current six-hour requirement and was hailed by patient advocates as essential to resident safety.

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If the governor’s proposal to extend is approved, it would mark the second postponement of the regulation, potentially saving the long-term care industry over $1 billion in infrastructure costs, according to a story in KFF Health News.

Only 34 of California’s more than 1,200 nursing homes currently meet the new requirement.

The industry argues that upgrades would need substantial modifications that would cost at least $1 million per facility, with some reaching $3.2 million.

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Corey Egel of the California Association of Health Facilities said nursing homes are requesting funding to bill the costs, which can be compounded by construction, permitting, and space challenges, Egel said.

Critics argue the delay puts residents at risk.

Tony Chicotel of the California Advocates for Nursing Home Reform called the timing “shocking,” especially after recent emergencies.

Assemblymember Jacqui Irwin, who originally authored the law, criticized Newsom for trying to “bureaucratically veto” her law amid increasing climate threats. Meanwhile, state lawmakers are pushing separate legislation to require 72-hour power backup in assisted living facilities.

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