UNITED STATES – A new study says 66% of Nursing homes say they won’t make it another year if the current due to rising expenses caused by COVID-19. According to the study 65% of nursing homes are currently operating at a loss.
The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) conducted a study of 953 nursing homes across the United States.
Among the surprising findings:
- Two-thirds (66%) of nursing homes say they won’t make it another year given current operating pace due to increased COVID costs.
- 90% of nursing homes are currently operating at a profit margin of 3% or less. (65% of nursing homes are currently operating at a loss).
- Staffing has been the top cost in response to COVID with nine out of 10 nursing homes hiring additional staff and/or paying staff overtime.
- 58% of nursing homes said additional staff pay and hiring new staff were their top cost incurred due to COVID.
- 70% of nursing homes have hired additional staff and nine out of 10 have asked current staff to work overtime and provided hero pay.
AHCH/NCAL says this clearly shows that nursing homes need to be a priority when it comes to administering the COVID-19 vaccine. The group also called for Congress to allocate additional COVID relief money to assist hospitals and nursing homes.
Mark Parkinson, President and CEO of AHCA/NCAL said, “Our nursing home providers are facing the worst financial crisis in the history of the industry due to increased costs related to COVID (testing, personal protective equipment, staffing) and chronic Medicaid underfunding. Without adequate resources, the U.S. will repeat the same mistakes made during the initial outbreak last spring. We need Congress to prioritize our vulnerable seniors and their caregivers in long term care facilities, by passing another COVID relief package right away.”
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