Medicare Cuts Force Nursing Home Layoffs – Study

Medicare nursing home reimbursement cuts will lead to direct-care staff layoffs at 63% of nursing home facilities, according to a survey of such facilities conducted on behalf of the Alliance for Quality Nursing Home Care, which represents for-profit nursing homes.

In addition, 77% of respondents said they would be delaying expansion and renovations as a result of the 11% Medicare reimbursement cut to skilled-nursing facilities that went into effect Oct. 1, according to the online survey of association members and non-members, which was conducted by Avalere Health. The CMS in July announced it would implement the cuts in order to account for previous overpayments related to therapy at SNFs.

“We’re seeing the leading edge of a job-loss wave” in the nursing home sector, said Alan Rosenbloom, president of the alliance, at a reporter teleconference. “We maintain the position … that any reductions in nursing home payments should be phased in gradually” over the course of years instead of in the one-time adjustment used by the CMS, he said.

The 292 responses to the survey represent companies running about 2,900 nursing home facilities, which means about 20% of all nursing homes are represented, according to a news release.

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