The combination of higher costs to protect residents and an inability to generate incremental revenue through new admissions due to the coronavirus pandemic is placing many senior living communities and nursing homes in “financial turmoil,” according to a research report published Friday by Moody’s Investors Service.
The White House’s recommendation that all states test nursing home residents and staff members for the novel coronavirus over the next two weeks, and President Trump’s comment that “we have prevailed” on COVID-19 testing — both made Monday — leaves unanswered the question, “What help does this provide to millions of vulnerable adults cared for in non-nursing home settings?” LeadingAge President and CEO Katie Smith Sloan said. Meanwhile, the AARP on Monday sent a letter to members of the Senate Judiciary Committee asking them to reject proposals to grant immunity from COVID-19-related lawsuits to assisted living, skilled nursing and other long-term care providers.
In an industry devastated by the coronavirus, some patient advocates and industry experts fear nursing home operators may seek to take advantage of the premium pay offered for admitting COVID-19-positive patients, according to a Los Angeles Times article Sunday.
Although some of short-term pandemic-related costs faced by skilled nursing facilities will likely fade over time, the industry’s current overall model may be financially unsustainable without broad changes, according to a Forbes article Monday.
As the COVID-19 death toll continues to rise within nursing homes across the nation, many experts have been contemplating ways to better house the country’s most fragile senior population, according to a Huffington Post article Friday.
While national and state associations seek legal immunity against claims arising out from actions related to fighting COVID-19, a House task force has prioritized long-term care and affordable senior housing for future COVID-19-related relief efforts.
Historically, investors have often viewed independent and assisted living communities — most often paid for out-of-pocket by residents — as safer bets than skilled nursing facilities, which generally are paid for via government programs such as Medicare and Medicaid. So they encouraged operators in their senior housing portfolios to engage in efforts to attract private-pay residents. The COVID-19 pandemic may be turning that assumption on its head, according to an article published Thursday by The Motley Fool. This could be good news SNF-focused real estate investment trust Omega Healthcare Investors.
Even before the coronavirus swept through the skilled nursing industry, many were struggling with thin profit margins. Now they could be wiped out, according to an article in The New York Times Tuesday.