Survey: 66% of nursing homes won’t make it another year given current operating pace due to increased COVID costs

Dec 17, 2020 at 09:53 am by WGNS

The Department of Health reports that Rutherford County has a high community spread of COVID-19 right now. Over the past 7 days, 25.1% of long-term care facility residents who were tested for COVID-19 have tested positive. Right now, tests are being conducted twice weekly.

Out of 14 different senior living facilities in Rutherford County, 266 staff members are COVID Positive and 303 residents in those facilities have COVID-19.

Across the country, the American Health Care Association and National Center for Assisted Living (AHCA/NCAL) recently conducted a survey of nursing home providers across the U.S. and found that 66% of nursing homes may not survive another year, given the current operating pace due to increased COVID costs. The survey also found that 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, according to the survey.

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. The survey also found that 58% of nursing homes said additional staff pay and hiring new staff were their top cost incurred due to COVID.

Mark Parkinson, President and CEO, AHCA/NCAL said the survey reinforces the need for Congress to pass another COVID relief package to replenish the U.S. Department of Health and Human Services (HHS) Provider Relief Fund, which is nearly out of resources to help hospitals and nursing homes respond to the record number of cases in the community and within our facilities. 

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