As PHE funding is fully withdrawn, the study warns the long-term financial viability of nursing homes—especially nonprofits—will be seriously challenged.
By 2022, as these public health emergency funds were cut back, for-profit nursing homes had overall net incomes of $1.68 per resident day, whereas not-for-profit nursing homes lost $31.18 per resident day. Without public health emergency funds, for-profit and not-for-profit nursing homes would have had losses of $7.47 and $42.35 per resident day, respectively, in 2022. These results indicate that as public health emergency funds are entirely withdrawn, the long-term financial viability of nursing homes, especially not-for-profits, will be seriously challenged.
Brunt, Christopher S., John R. Bowblis, and Robert Applebaum. “Loss Of Public Health Emergency Funds Challenges The Financial Viability Of Nursing Homes, Especially Not-For-Profit Facilities.” Health Affairs, 4 November 2024. https://doi.org/10.1377/hlthaff.2024.00431
Research: COVID-19 Public Funding’s Impact on Nursing Homes
Public health emergency funding helped stabilize nursing home operations through 2021. However, by 2022, as this funding was reduced, for-profits reported a modest net income of $1.68 per resident day, whereas nonprofits reported losses of $31.18 per resident day. Without policy intervention to address funding issues, access to high-quality nursing home care could be significantly reduced.
— LeadingAge, November 13, 2024
PHE Funds Wind-Down Raises Concerns of ‘Severely Restricting’ Access to Nursing Homes
“Our data shows that many nursing homes do not have enough funds to cover existing staffing levels, let alone the higher staffing levels that [the Centers for Medicare & Medicaid Services] is mandating with their minimum staffing standard,” said John Bowblis, co-author of the study and professor at Miami University in Ohio.
— Skilled Nursing News, November 5, 2024
Staffing Costs Masked by COVID Relief Funds Revealed in New Study of Nursing Home Finances
“What we’re showing in the data is that’s true, but it’s all because of COVID relief funds. What this was doing was masking an underlying trend, which was that costs were rising, mostly because the labor market was tight in 2018 and 2019, and Medicaid payment rates and Medicare payment rates were not rising enough to make up the difference.”
— McKnight’s Long-Term Care News, November 4, 2024
