Nursing homes nationwide are facing a perfect storm – a looming financial crisis brought on by a new rule from the Centers for Medicare & Medicaid Services (CMS). The rule implements stricter staffing mandates alongside a proposed 4.1% pay increase. While the pay bump is welcome, providers fear it’s far from enough to weather the storm of rising costs.
The heart of the issue: The staffing mandate, projected to cost billions annually, clashes with skyrocketing operational expenses. From stockpiling PPE to implementing enhanced hygiene protocols due to COVID-19, everyday costs are surging.
Industry leaders are urging CMS to reconsider its approach:
- Dynamic pay adjustments: Similar to the 2023 approach, factoring in rising labor costs would provide a more realistic financial picture for facilities.
- Funding the staffing mandate: Future payment structures need to reflect the increased financial burden of additional staff.
However, CMS seems focused on enforcement. Their expanded power to levy fines aims to hold facilities accountable for resident care. But many providers argue these fines are a financial death sentence. They say the penalties divert resources away from crucial areas – staff recruitment, quality improvement programs, and infrastructure upgrades – the very areas needing investment to meet staffing mandates and improve care.
LeadingAge, an industry association, proposes a different approach: Revamp the survey process. Instead of solely focusing on punishment, CMS should offer constructive feedback and educational support to help facilities improve. Collaboration, not punishment, is the key to long-term success in the industry.
The stakes are significant. With an aging population relying on long-term care, ensuring quality care and financial stability for nursing homes is critical. If CMS doesn’t shift its focus from fines to offering support, the financial burden could cripple the industry, ultimately jeopardizing the well-being of our most vulnerable citizens.