How is the recession affecting nursing facilities?
According to the Associated Press, the Centers for Medicare and Medicaid Services cut Medicare rates to nursing facilities (NFs) by $16 billion over 10 years. These facilities can expect more cuts if President Barack Obama’s health care reform bill becomes law.
American Health Care Association (AHCA) president and CEO Bruce Yarwood said, “As health reform deliberations continue, we respectfully urge lawmakers to keep in mind that any additional Medicare cuts will be on top of this $16 billion ten year regulatory cut implemented today. Without a doubt, the care and well being of the nation’s most vulnerable seniors will clearly be at stake if any new cuts are excessive.” (Source)
AHCA represents non-profit and for-profit assisted living, nursing facility, developmentally-disabled, and subacute care providers.
As we’ve blogged before, the retiring baby boomers will exert more pressure on the system in light of nurse and primary care physician shortages, and the impending closure of nursing homes. The AP reports that 24 states slashed funding for NFs and other services used by seniors and the disabled with low-income.