“Government shouldn’t micromanage nursing homes”

“Government shouldn’t micromanage nursing homes,” by Sally Pipes, Washington Examiner

“The Biden administration published regulations last month requiring most nursing homes to maintain specific staffing levels. As a result, roughly three in four nursing homes will have to hire additional personnel. … But government diktats, however well-intentioned, won’t address the issues behind staffing shortages. Nursing homes have long had to contend with low reimbursement rates from Medicaid, which make it hard to attract and retain employees. Simply telling nursing homes to hire more staff won’t address that problem. … As Stephen A. Moses of the Paragon Health Institute has observed, Medicaid, the facilities’ chief payer, reimburses nursing homes at a lower rate than do other insurers. Indeed, in 2019 Medicaid failed to cover the cost of care at roughly 80% of nursing homes. Imagine trying to operate a grocery store or restaurant when you have to sell to your chief customer at a loss!”



LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

Sally Pipes, president, CEO, and the Thomas W. Smith fellow in healthcare policy at the Pacific Research Institute, nails the essence of the issue in this column. Medicaid demands Ritz Carlton care from nursing homes but pays only Motel 6 rates. The result is caregiver shortages and a national epidemic of closures.