Survey Reveals Real Concern for SNF Viability in Wake of Covid



The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) recently conducted a survey of nursing home providers across the United States. The majority shared concerns over ongoing viability given current operating costs in the wake of COVID.

Key findings outlining why long term care facilities should receive vaccine first include:

  • Two-thirds (66%) of nursing homes say they won't make it another year given current operating pace due to increased COVID costs.
  • 90% of nursing homes are currently operating at a profit margin of 3% or less. (65% of nursing homes are currently operating at a loss).
  • Staffing has been the top cost in response to COVID with nine out of 10 nursing homes hiring additional staff and/or paying staff overtime.
  • 58% of nursing homes said additional staff pay and hiring new staff were their top cost incurred due to COVID.
  • 70% of nursing homes have hired additional staff and nine out of 10 have asked current staff to work overtime and provided hero pay.

Enclosed is a statement from Mark Parkinson, President and CEO, AHCA/NCAL on the survey and reinforcing the need for Congress to pass another COVID relief package to

"Our nursing home providers are facing the worst financial crisis in the history of the industry due to increased costs related to COVID (testing, personal protective equipment, staffing) and chronic Medicaid underfunding. Without adequate resources, the U.S. will repeat the same mistakes made during the initial outbreak last spring. We need Congress to prioritize our vulnerable seniors and their caregivers in long term care facilities, by passing another COVID relief package right away," said AHCA/NCAL President and CEO Mark Parkinson. He also called on Congress to replenish the U.S. Department of Health and Human Services Provider Relief Fund, which is nearly out of resources to help hospitals and nursing homes respond to the record number of cases in the community and within our facilities.

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