Proposed Medicaid cuts are spurring widespread concern among nursing home providers, as reductions would severely impact care quality, staffing, and facility operations. Activity on the Hill and a new report puts the spotlight on potential impact to stakeholders.

About 92% of providers are concerned about further Medicaid cuts, according to a May report from the American Health Care Association and National Center for Assisted Living (AHCA/NCAL). Of the 363 surveyed providers, 77% said they would have to delay facility improvements like capital improvement projects and investing in new technology, while 58% would need to cut staff.

AHCA/NCAL called the potential fallout a “significant blow” to a slow but steady recovery of the nursing home workforce.

About 27% said they would need to close their facilities as a result of Medicaid cuts.

“The consequences are undeniable,” Clif Porter, president and CEO of AHCA/NCAL, said in a statement. “Restricting provider taxes is restricting resources to seniors and their caregivers. There are better ways to find government efficiencies that do not jeopardize access to care. We urge Congress to restore the promise made to our most vulnerable.”

More than 90% of the providers said they operated rural or single facilities.

“This report confirms what we’ve been hearing for months: that any reductions to Medicaid would be devastating for seniors, caregivers, and communities,” said Porter. “Without reliable Medicaid resources and programs like provider taxes, nursing homes would face impossible decisions, like having to reduce staff or close their doors.”

The report coincides with AHCA/NCAL’s largest-ever Congressional briefing, where more than 700 nursing home advocates are urging lawmakers to maintain funding and protect senior care as part of a two-day event. Providers will also hear from keynote speaker Howard Kurtz, host of “MediaBuzz” on Fox News, AHCA/NCAL said.

“Our members are in D.C. this week reminding lawmakers that Medicaid knows no politics: this program impacts people in every community in every state. We must do right by vulnerable seniors and protect their long term care,” added Porter.

Potential Medicaid cuts come at a time when nearly two-thirds of providers report Medicaid reimbursement as less than 80% of the actual cost of care, while 11% said they’re receiving less than 50% of the actual cost of care.

In other words, Medicaid is already severely underfunded compared to what nursing home care costs today, underlining the devastating impact of further cuts.

More than 8 in ten providers told AHCA/NCAL that any reduction to or elimination of provider taxes would have a significant impact on their facilities.