Maine’s nursing home industry is sounding the alarm, making an urgent plea for a $10 million boost in Medicaid funding to prevent further facility closures and avert a full-blown crisis in long-term care for the state’s rapidly aging population. This desperate call for financial intervention comes as providers grapple with persistent underfunding and a critical shortage of staff, exacerbated by the COVID-19 pandemic.
The Maine Health Care Association (MHCA) brought their case to the House Appropriations Committee, emphasizing that current Medicaid reimbursement rates are insufficient to cover the escalating costs of resident care. “Providers would face rate cuts if this $10 million is not budgeted. This request was included in the governor’s budget proposal, and MHCA is advocating in support of this much-needed appropriation,” asserted Angela Cole Westhoff, President and CEO of MHCA.
The urgency of the situation is particularly acute in Maine, which holds the distinction of being the nation’s oldest state by median age. Projections indicate that the population over 75 will surge by more than 75% in the next 15 years, as highlighted by Westhoff. Yet, the state has already seen a concerning attrition of care facilities, with 29 nursing homes and 26 residential care facilities closing their doors over the past decade.
Beyond the financial crunch, a major contributing factor to these closures is the ongoing struggle to recruit and retain a skilled workforce. The long-term care sector experienced a devastating 10% to 15% decline in its workforce during the pandemic, creating a critical bottleneck that has reduced bed capacity and left patients languishing in hospitals. While there have been modest gains in the national skilled nursing workforce recently, the pace is far too slow to meet the burgeoning demand.
“When you can get a job at a fast-food restaurant and get paid more than you can taking care of folks with some of the most pressing, private needs, sometimes it’s hard for people to stay in a job, even if it’s one they truly love,” noted Sen. Nicole Grohoski (D), who recently introduced emergency legislation to mandate a cost-of-living adjustment to reimbursement rates. Her statement underscores the fundamental issue of uncompetitive wages driving staff away from a vital industry.
The struggle in Maine mirrors a national challenge where Medicaid reimbursement frequently fails to cover the actual cost of care. According to a report by the Assistant Secretary for Planning and Evaluation, national Medicaid payment rates for the average nursing home covered only approximately 82 cents for every dollar of reported cost incurred caring for Medicaid residents. This persistent shortfall places immense financial pressure on facilities, especially those with a high proportion of Medicaid residents, jeopardizing their ability to remain operational.
As state lawmakers deliberate on a new spending plan, the future of Maine’s nursing home industry and the well-being of its most vulnerable citizens hang in the balance. Addressing both the critical reimbursement gap and the severe workforce crisis will be paramount to prevent further closures and ensure accessible, quality long-term care for generations to come.