New Minimum Staffing Standards by CMS Worsens Financial Challenges for Nursing Homes
The Centers for Medicare & Medicaid Services (CMS) has issued a final rule on minimum staffing standards for long-term care facilities, which will require nursing homes to increase their staffing levels in order to create a safer living environment for residents. The new rule mandates a minimum staffing standard of 3.48 nursing hours per resident day (HPRD) and will be phased in over the next several years.
While the goal of increasing staffing levels may seem laudable, experts warn that this mandate could further complicate the already financially troubled nursing home industry. According to KFF.org, only one in five facilities currently meet the minimum staffing criteria required at full implementation, and many nursing homes are struggling to stay afloat due to low Medicaid reimbursement rates.
The financial squeeze on nursing homes is exacerbated by the fact that almost 70% of residents rely on Medicaid to pay for their care, which often results in losses for the facility. The difference between private pay and Medicaid payment rates can be significant, with many facilities losing money every month on Medicaid patients. To address this issue, industry experts are calling for increased financial support from the government or alternative solutions that would allow nursing homes to provide quality care while remaining financially sustainable.
Financial planners emphasize the importance of planning ahead for long-term care needs. They advise people to start looking ahead around age 62, when considering signing up for Social Security and Medicare, and to develop a comprehensive plan that can pay great dividends both financially and in quality-of-life decades later.
The situation highlights the need for individuals to rely less on government support and more on their own planning and preparation. By taking proactive steps, people can ensure that they are prepared for potential long-term care needs and avoid being caught off guard by unexpected expenses or reduced access to care.