87% of RI Nursing Homes at Financial Risk of Closure, According to National Report
Wednesday, May 18, 2022
A new national report has identified Rhode Island as the most endangered state for nursing home closures in the nation.
The report, conducted by Clifton Larson Allen LLC (CLA), a national accounting and consulting firm, revealed that 95% of Rhode Island’s nursing homes were losing money, and 87% were deemed at “Financial Risk” - at high risk of closure with operating losses at -7.5% or worse.
“Rhode Island nursing homes have been hit by the perfect storm," said John Gage, President of the Rhode Island Health Care Association (RIHCA)
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"The combination of chronic underfunding by Rhode Island Medicaid (a quarter of a billion dollars over the past decade), an historic workforce shortage (with 21%+ of nursing home workers lost in the past 2 years) and rampant inflation driving up the everyday costs to operate the homes, have created an existential threat to the future viability of Rhode Island nursing homes," he added.
Reports 'Lowlights' According to RIHCA
- The percent of RI nursing homes at Financial Risk” has increased from 19% in 2019 to 87% today, a 68% increase.
- Since the start of the pandemic, five (5) RI nursing homes have closed – displacing hundreds of RI most frail elders from their homes. This comes at a time when Rhode Island’s elder population (85+) is set to double in the next two decades.
- By the year 2027, in just five (5) years, there will not be enough nursing home beds in Rhode Island to serve those in need – without factoring recent or potential future closures.
- The Federal Bureau of Labor Statistics shows that Rhode Island nursing homes lost 2,096 staff members since 2019 – a 21.1% reduction in the entire RI nursing home workforce.
“Unfortunately these disturbing statistics do not include the costs associated with the 2021 passage of the State’s new minimum staffing law," said Gage. "This law, is simply impossible to implement, especially at a time with the demonstrated lack of available workers. This will only exacerbate the crisis we now face. Without immediate relief, Rhode Island nursing homes will simply disappear. Rhode Island’s most frail residents deserve much better.”
The report, commissioned by the American Health Care Association (AHCA), utilized Medicare data through September 2021 to ascertain the financial health of America’s nursing homes
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