Each day, 1.5 million Americans turn to skilled nursing facilities for their long term and post-acute care needs. These facilities are shedding the perceptions of the past and leading the way in providing the most cost-effective, quality care for America's seniors and persons with disabilities. Support from federal health programs is needed by an overwhelming majority of those who turn to a skilled nursing center for their care, with 64 percent of residents relying on Medicaid and 14 percent relying on Medicare.
Unfortunately, over the years cuts have hit nursing facilities hard through health care reform, federal regulations, dwindling state revenues and Congress’ sequestration. The sector has incurred $32.49 billion in total cuts and reductions to Medicare, while Medicaid continues to be underfunded. More cuts to skilled nursing facilities continue to be a looming threat, jeopardizing seniors and individuals’ with disabilities access to long term and post-acute care.
Learn more about the rounds of the reductions skilled nursing facilities have already been dealt and their effect on the profession.
SNF Payment Reductions - A Timeline
Reports Demonstrate Current Struggles of SNFs
Assessing the Financial Implications of Alternative Reimbursement Policies for Nursing Facilities
The Moran Company, December 2011
AHCA commissioned the prestigious research group, The Moran Company, to perform an analysis on overall margins for nursing care centers. Using the most recent data available from 2009, this study found that overall margins are 0.75 percent, demonstrating the challenging situation nursing facilities nationwide are currently facing. The study also concluded that if Congress makes further cuts to skilled nursing and post-acute care centers, margins consistently go negative.
A Report on Shortfalls in Medicaid Funding for Nursing Home Care
Eljay, LCC, December 2011
Eljay, LLC (Eljay), was engaged by the American Health Care Association (AHCA) to work with its state affiliates and other sources to compile information on the shortfall between Medicaid reimbursement and allowable Medicaid costs in as many states as feasible. The estimated 2011 projected shortfall climbed significantly to $19.55 per Medicaid patient per day. Nationwide, nursing facilities were underfunded by $6.3 billion in 2011.