March 3, 2011
Washington, D.C. (March 3, 2011) – From neighborhood pharmacies to medical suppliers, technology solutions companies and therapy services, thousands of businesses across the country provide the nation’s skilled nursing facilities with products and services that directly or tangentially contribute to the delivery of quality care to the elderly, and owners are warning state and federal lawmakers that funding cuts to long term care not only threaten the viability of nursing home operations but those of the businesses that support them, the Community Cares Coalition (CoCares) said today. CoCares is a national coalition that serves as the voice and advocate in Washington, DC for community businesses and organizations that support the long term care industry.
“Budget pandemonium reigns at both the state and federal level and Medicaid and Medicare funding cuts respectively are not only jeopardizing care to the elderly in skilled nursing facilities but threatening the viability of long term care businesses that support a sector representing 1% of the national GNP,” noted Gail Rader, Founder of Care Perspectives, Inc. a consulting firm located in Philipsburg, New Jersey specializing in the education and training of long term care staff on administrative policy and regulatory matters and a CoCares member. “Lawmakers must understand that making massive funding cuts to nursing home providers has a dire impact far beyond the four walls of a facility. Myriad businesses that support the operation of a nursing home and help make it possible for a facility to provide high quality care are a part of that equation. We generate jobs and contribute to the state and local tax base. When we hear of nursing home closures due to lack of funding, we will also begin to hear the doors shutting on businesses like ours.”
Rader pointed out that several state legislatures are proposing as much as 5% to 10% cuts in Medicaid funding to eldercare and in Texas, a steep 33 percent cut. Medicaid beneficiaries represent approximately two thirds of a facility’s patient base and most states for years have had Medicaid funding shortfalls, forcing providers to be dependent on Medicare funding to supplement the cost of care. But long term care providers are now absorbing a $26 billion cut in Medicare over the next 10 years which has removed that funding safety net and put the financial state of long term care at a critical mass.
“Rural towns and businesses face severe challenges already during this economically sluggish time, noted Bobbie Nichols, who owns KB Enterprises a company located in Dublin, TX that supports long term care facilities with medical equipment, supplies, and hospice services. “Texas has always been a business friendly state, but there will be a domino effect to companies supporting long term care, the likes of which many of us have never seen, if these additional Medicaid cuts are implemented. Honestly, I don’t know how many of us can continue to operate our businesses and keep staff without a thriving long term care sector. “
Radar said CoCares is very concerned about recent proposals in Congress that would eliminate what is known as “the quality fee,” which is used by states to generate additional Medicaid funds for skilled nursing facilities and the movement by several Governors to lobby Congress for Medicaid Block Grants. The latter would shift costs to the state and increase the perpetual Medicaid shortfalls in reimbursement to skilled nursing facilities, magnifying the already dire funding situation and putting more long term care businesses in danger of having to reduce workforce and pare back services.
“The bottom line is that if job creation paves the way to a stronger economy, then it is imperative lawmakers refrain from enacting policies that work directly against that outcome,” concluded Rader. “The sum is greater than the parts in the long term care sector. We all work together in the delivery of care to our elderly. If one domino goes down, so go the others.”
“Budget pandemonium reigns at both the state and federal level and Medicaid and Medicare funding cuts respectively are not only jeopardizing care to the elderly in skilled nursing facilities but threatening the viability of long term care businesses that support a sector representing 1% of the national GNP,” noted Gail Rader, Founder of Care Perspectives, Inc. a consulting firm located in Philipsburg, New Jersey specializing in the education and training of long term care staff on administrative policy and regulatory matters and a CoCares member. “Lawmakers must understand that making massive funding cuts to nursing home providers has a dire impact far beyond the four walls of a facility. Myriad businesses that support the operation of a nursing home and help make it possible for a facility to provide high quality care are a part of that equation. We generate jobs and contribute to the state and local tax base. When we hear of nursing home closures due to lack of funding, we will also begin to hear the doors shutting on businesses like ours.”
Rader pointed out that several state legislatures are proposing as much as 5% to 10% cuts in Medicaid funding to eldercare and in Texas, a steep 33 percent cut. Medicaid beneficiaries represent approximately two thirds of a facility’s patient base and most states for years have had Medicaid funding shortfalls, forcing providers to be dependent on Medicare funding to supplement the cost of care. But long term care providers are now absorbing a $26 billion cut in Medicare over the next 10 years which has removed that funding safety net and put the financial state of long term care at a critical mass.
“Rural towns and businesses face severe challenges already during this economically sluggish time, noted Bobbie Nichols, who owns KB Enterprises a company located in Dublin, TX that supports long term care facilities with medical equipment, supplies, and hospice services. “Texas has always been a business friendly state, but there will be a domino effect to companies supporting long term care, the likes of which many of us have never seen, if these additional Medicaid cuts are implemented. Honestly, I don’t know how many of us can continue to operate our businesses and keep staff without a thriving long term care sector. “
Radar said CoCares is very concerned about recent proposals in Congress that would eliminate what is known as “the quality fee,” which is used by states to generate additional Medicaid funds for skilled nursing facilities and the movement by several Governors to lobby Congress for Medicaid Block Grants. The latter would shift costs to the state and increase the perpetual Medicaid shortfalls in reimbursement to skilled nursing facilities, magnifying the already dire funding situation and putting more long term care businesses in danger of having to reduce workforce and pare back services.
“The bottom line is that if job creation paves the way to a stronger economy, then it is imperative lawmakers refrain from enacting policies that work directly against that outcome,” concluded Rader. “The sum is greater than the parts in the long term care sector. We all work together in the delivery of care to our elderly. If one domino goes down, so go the others.”
Archive
Updates Coming Soon - ... Read More
FMAP Press Release - National Long Term Care Business Coalition Says Funding Will Support Local Economies and Long Term Care Jobs Base... Read More
- Nursing Home Caregivers, Providers, Small Business Leaders Warn Deep Medicare Cuts Will Threaten Seniors’ Care, Destabilize Staffing, Hurt Local Economies and Jobs Base... Read More
- CoCares Makes the News! Click here to read stories in Modern Healthcare and Congressional Quarterly... Read More
- The Community Cares Coalition (CoCares) – a national coalition of community long term care businesses and organizations providing key services to the skilled nursing community – today said that while long term care businesses support reform measures to increase efficiencies in the healthcare system and promote cost savings, the current reform proposal in the U.S. House of Representatives.... ... Read More
- National Long Term Care Community Business Coalition Cautions Severe $16 Billion Medicare Cuts to Nursing Home Care... Read More
- Community Businesses Impacted by Looming Cuts to Long Term Care Federal Funding Form Coalition to Mobilize Support for Local LTC Economies... Read More
FMAP Press Release - National Long Term Care Business Coalition Says Funding Will Support Local Economies and Long Term Care Jobs Base... Read More
- Nursing Home Caregivers, Providers, Small Business Leaders Warn Deep Medicare Cuts Will Threaten Seniors’ Care, Destabilize Staffing, Hurt Local Economies and Jobs Base... Read More
- CoCares Makes the News! Click here to read stories in Modern Healthcare and Congressional Quarterly... Read More
- The Community Cares Coalition (CoCares) – a national coalition of community long term care businesses and organizations providing key services to the skilled nursing community – today said that while long term care businesses support reform measures to increase efficiencies in the healthcare system and promote cost savings, the current reform proposal in the U.S. House of Representatives.... ... Read More
- National Long Term Care Community Business Coalition Cautions Severe $16 Billion Medicare Cuts to Nursing Home Care... Read More
- Community Businesses Impacted by Looming Cuts to Long Term Care Federal Funding Form Coalition to Mobilize Support for Local LTC Economies... Read More
