Research shows impact of PPP loans on staffing in US nursing homes

Published by Jama open network
Our Take: A JAMA Network study found that nursing homes receiving Paycheck Protection Program (PPP) loans – which required 60–75% of funds be directed to staffing- experienced significant increases in CNA and LPN hours within 12 weeks of receipt.  ▼

The findings suggest that dedicated, earmarked funding programs can meaningfully move the needle on nursing home staffing levels.


Association of Receipt of Paycheck Protection Program Loans With Staffing Patterns Among US Nursing Homes

In this economic evaluation, a forgivable loan program that required funding to be appropriated toward staffing was associated with a significant increase in CNA and LPN staffing hours among NH PPP loan recipients. Because the PPP loans are temporary, federal and state entities may need to institute sufficient and sustainable support to mitigate NH staffing shortages.

Travers, Jasmine L., et al. “Association of Receipt of Paycheck Protection Program Loans With Staffing Patterns Among US Nursing Homes.” JAMA Network Open, vol. 6, no. 7, 27 July 2023, e2326122. doi:10.1001/jamanetworkopen.2023.26122.

Association of Receipt of Paycheck Protection Program Loans With Staffing Patterns Among US Nursing Homes

Twelve weeks after PPP loan receipt, NHs that received a PPP loan experienced a mean difference of 26.19 more CNA hours per week and a mean difference of 6.67 more LPN hours per week compared with nursing homes that did not receive a PPP loan. No associations were found between PPP loan receipt and weekly RN staffing hours.

— LTCFocus, September 20, 2023

Pandemic Loans Showed Dollars Will Move the Staffing Shortage Needle: Study

Our study shows that funding in the presence of a minimum nursing staff expenditure regulation can support increased staffing levels within weeks. We need federal and state policies that provide sustainable support and incentivize nursing homes to invest in their staff long-term.

— McKnight’s Long-Term Care News, July 28, 2023

Policy Makers Called to Boost Funding, Rethink Staffing Regulations as SNF Administrators Cite High Costs of Pandemic

Staffing hours changed among nursing homes that received forgivable loans through the PPP, which required recipients to appropriate 60% to 75% of the loan toward staffing. In analyzing financial data from 6,008 U.S. nursing homes 12 weeks after they received a PPP loan, researchers said nursing homes that received such a loan saw a rise in certified nursing assistant (CNA) and licensed practical nurse (LPN) hours per week compared with nursing homes that did not receive a PPP loan.

— Skilled Nursing News, July 27, 2023

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