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Medicare Cuts Could Shutter Nursing Homes

By: Melanie Stawicki Azam

Source: orlando.bizjournals.com

Florida nursing homes face a proposed $78.4 million cut in Medicare reimbursements, which may cause some facilities to close and/or shed nearly 2,000 jobs statewide.

If the cuts take effect on Oct. 1, “it would be catastrophic,” said Emmett Reed, executive director for the Tallahassee-based Florida Health Care Association, which represents 500-plus long-term care facilities.

Nationwide, more than $1 billion in Medicare funding for skilled nursing care would be slashed in 2010 and $18 billion over a 10-year period, said the American Health ­Care Association.

It also would put more than 30,000 U.S. nursing home-specific jobs at risk. “We are concerned about cuts of that magnitude,” said association spokeswoman Donna Doneski. “70 percent of the costs associated with nursing facilities are labor-related.”

Moreover, Florida’s proposed Medicare cuts — the second-highest reductions in the nation for fiscal-year 2010, said the association — would cause an estimated $132.2 million reduction in Florida’s business activity and $65.9 million in labor income. This would be due to reduced revenue to local businesses serving the nursing homes and the lack of income in the local economy from laid-off nursing ­home workers.

The proposed Medicare cuts would cause many nursing homes to decide whether or not they can afford to remain open, said Cary Smith, vice president of Florida operations at Adventist Care Centers, which operates six facilities in the state with 800 beds.
Nursing homes face $78M Medicare cut

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