White House order aims to tie nursing home Medicare payments to worker retention

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Our Take: President Biden signed an executive order directing HHS to build on minimum staffing standards and condition a portion of Medicare payments on how well nursing homes retain workers. Industry associations expressed concern that punitive payment linkages, without funding or workforce support, will compound the existing staffing crisis in skilled nursing. ▼

Operators with elevated turnover data reported through Payroll-Based Journal (PBJ) submissions face the greatest exposure to payment adjustments under any finalized rule.


White House Order Aims to Tie Nursing Home Medicare Payments to Worker Retention

Biden’s executive order will direct the Department of Health and Human Services (HHS) to “build on the minimum staffing standards for nursing homes and condition a portion of Medicare payments on how well a nursing home retains workers,” according to a White House fact sheet. Overall, Biden’s executive order includes more than 50 directives across cabinet agencies related to expanding care access, with a particular focus on long-term care and child care.

— Skilled Nursing News, April 18, 2023

Surprise Biden Order ‘Punishing’ for Nursing Home Providers

“The order bolsters the home care workforce, while punishing nursing home providers for shortages — despite the reality that employers in both care settings navigate the same challenges in a competitive labor market,” said Katie Smith Sloan, President and CEO of LeadingAge. “Over a million older adults rely on the specialized care only nursing homes provide. Already, nursing homes around the country are closing or limiting admissions due to staffing shortages.”

— McKnight’s Long-Term Care News, April 19, 2023

‘Access Crisis Unfolding’: Nursing Home Operators, Advocates Warn of Dire Effects from Biden’s Order on Staffing

“We foresee an access crisis unfolding if an unfunded, one-size-fits-all minimum staffing requirement is enforced in skilled nursing facilities. Unfortunately, our nation’s seniors will pay the price,” said Nate Schema, President and CEO of the Good Samaritan Society. “There simply are not enough workers available to meet any requirement to increase staffing levels.”

— Skilled Nursing News, April 18, 2023

New Biden Executive Order Would Tie Medicare Rates to Turnover

Among them are calls to expand on an as-yet undisclosed staffing mandate and tie Medicare payments to retention. It directs the Department of Health and Human Services to consider issuing “several” regulations and guidance documents to “build on the minimum staffing standards for nursing homes and condition a portion of Medicare payments on how well a nursing home retains workers.”

— McKnight’s Long-Term Care News, April 18, 2023

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