Pennsylvania’s Nursing Homes Face a Critical Underfunding Crisis, Survey Finds

Long-term care© Dean Mitchell / Getty Images Signature / Canva

MECHANICSBURG, PA — A recent survey conducted by LeadingAge PA, an association representing nonprofit and mission-driven nursing homes, has revealed a significant underfunding crisis affecting the care of the state’s aging population. According to the survey, nearly one in four certified nursing home beds are currently offline, primarily due to inadequate Medicaid reimbursement rates and a persistent workforce shortage.

The findings spotlight a troubling trend: despite having the licensed capacity, 48% of these facilities have been forced to decline hospital referrals in the past two to three months. The reason? A dire lack of staff and financial resources directly tied to insufficient Medicaid reimbursements. This issue not only impacts the nursing homes’ operational capabilities but also places a strain on hospitals and the broader healthcare system, potentially delaying care for Pennsylvania’s seniors.

In a state where the senior population (those 65 and over) exceeds 2.2 million individuals, the implications of this crisis are far-reaching. Nearly 70% of older adults in Pennsylvania rely on Medicaid for their long-term care, making the state’s reimbursement rates a critical factor in accessing quality nursing home services.

The survey further reveals that a whopping 93% of nursing home providers would prioritize increasing wages for both new hires and existing staff if Medicaid funding were to be raised. This highlights a clear pathway to addressing the workforce crisis: better pay could attract more workers to the industry and retain the ones already bearing the brunt of these challenging conditions.

LeadingAge PA is advocating for a substantial increase in Medicaid funding for nursing homes — to the tune of $70 million — in the upcoming 2024-25 state budget. Additionally, the association seeks at least $8.9 million, adjusted for inflation, for Pennsylvania’s Living Independence for the Elderly (LIFE) program, which offers an alternative to nursing home care by providing comprehensive home and community-based services to seniors.

Garry Pezzano, President and CEO of LeadingAge PA, emphasized the urgency of the situation. “Our survey is clear: nursing home providers have taken nearly 25% of their beds offline due to inadequate reimbursement rates and a shortage of workers,” Pezzano stated. He further expressed the association’s commitment to working with Governor Shapiro’s administration and the General Assembly to secure the necessary funding increases.

The current funding shortfall and staffing crisis in Pennsylvania’s nursing homes not only threaten the quality of care available to the state’s elderly population but also highlight a broader issue of how we value and support the long-term care sector. As the demand for such services continues to grow with an aging population, the state’s response to this crisis will have lasting implications for seniors, their families, and the healthcare system at large.

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