As many as 66% of nursing properties say they may shut in 2021 on account of COVID-19 prices, in response to a brand new survey of nursing house suppliers.
The American Well being Care Affiliation and Nationwide Heart for Assisted Dwelling, which represents greater than 14,000 nursing properties and assisted dwelling services throughout the U.S., discovered 90% of the 953 nursing properties that responded mentioned their revenue margins are three% or much less, and 65% mentioned they’re presently working at a loss. The largest improve in price was staffing.
“Our nursing house suppliers are dealing with the worst monetary disaster within the historical past of the trade on account of elevated prices associated to COVID (testing, private protecting tools, staffing) and power Medicaid underfunding,” AHCA/NCAL President and CEO Mark Parkinson mentioned in a ready assertion. “We’d like Congress to prioritize our susceptible seniors and their caregivers in long-term care services, by passing one other COVID aid package deal straight away.”
Likewise, John Sauer, president and CEO of LeadingAge Wisconsin, a state affiliation of growing old service suppliers, mentioned throughout a current press convention that he expects to see many services fail in 2021 except the trade receives federal aid.
Margaret Johnson, the director of senior dwelling for Fitch Rankings, mentioned expert nursing is “in a precarious monetary place.” They’re dealing with low occupancy charges, a larger share of Medicaid sufferers and better staffing calls for and prices. On prime of that, they’ve taken successful to their reputations over their response to the pandemic, she mentioned.
The monetary strain is much less acute for services which might be a part of life plan communities, the place unbiased dwelling and different choices assist shore up expert nursing losses, she mentioned. Unbiased dwelling has remained extra secure as a result of its occupancy charges have not been as affected by the pandemic.
The emergency use authorization of a COVID-19 vaccine and the prioritization of long-term care workers and residents ought to assist the nursing house sector, Johnson mentioned.
“General, we predict it’ll be stabilizing,” she mentioned.
Vaccinations ought to assist improve confidence in nursing properties and enhance admissions and scale back staffing bills incurred for quarantining staff, Fitch Rankings mentioned in a current report.