The future of LTC: facilities weigh in - SpecialtyRx
August 19, 2020
The future of LTC: facilities weigh in

72% of facilities say they can’t sustain operations for another year under current conditions

See the latest COVID-19 facility survey responses


While some American industries are beginning to see a small glimpse of normalcy, long-term care operators are struggling to see the light.

In a recent survey published by the American Health Care Association/National Center for Assisted Living, nursing homes expressed their concerns related to the ongoing public health crisis. Most notably, 72% of respondents say they cannot sustain operations for another year at the current pace of spending and revenue 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% to 80% of the actual cost of care,” said the AHCA/NCAL.

LTC in crisis

Complete survey results available at


The solution? Federal support

The findings highlight the greatest burden of all: costs for PPE and other COVID-19-related labor and supplies. Many nursing homes—including those who have no reported positive cases—are forced to shell out thousands of dollars a week to stay safe (and compliant).

In order to sustain the current pace of spending, 77% of survey respondents said government funding is extremely important. 58% added that the end of federal aid amidst the novel coronavirus will cause them to “experience significant problems.”

While the numbers seem discouraging, they provide significant insight into the top issues facing nursing homes through 2021. To date, 96% of all providers have benefited from some form of federal funding—and more relief is on the way.

At the end of July, the Trump Administration announced they will be issuing another round of payments to the tune of $5B. While $2.5B of the funds will be distributed up front to help with staffing, testing, PPE, and other immediate needs, the rest will be tied to facility performance—total deaths and containment status. Operators who establish separate COVID-19 isolation wings will be eligible for additional funds.

How has your facility responded to the current crisis? Are you finding ways to cut back while staying compliant? For the foreseeable future, be sure to prioritize all essential purchases and procedures. Be confident that by delivering the highest caliber of care, your facility will receive the financial relief it deserves.


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