WASHINGTON, D.C. — Over half of skilled nursing facilities are currently operating at a loss, with 72 percent saying they won’t survive another year at the current pace.
That’s according to a recent survey by the Washington, D.C.-based American Health Care Association (AHCA) and National Center for Assisted Living (NCAL). The survey polled 463 facilities between Aug. 8 and Aug. 10.
Of the respondents, nearly 90 percent said they are on either a razor-thin profit margin or operating at a loss, with 55 percent saying they are currently operating at a loss.
“This has been largely driven by the increase in costs responding to COVID-19 (personal protective equipment (PPE), additional staffing and testing) and Medicaid’s underfunding, which only covers 70 percent to 80 percent of the actual cost of care,” according to the executive summary of the survey results.
While 96 percent of respondents received some government funding during the pandemic, nearly 60 percent expect to experience “significant problems with increased costs and lost revenue” when the stimulus funding ends. Nearly all — 93 percent — said that government funding is “very important to helping with COVID-related costs and losses.”
To view the full survey results, click here.