McFadden says that the private-paying clients his home serves used to run out of money in two or three years. Now they become broke much more quickly. Once they can't pay, Medicaid picks up only some of the tab, and the Lutheran Home then starts losing money on them. It's illegal for a Medicaid-certified nursing home to ask patients to leave because they run out of money.
Residing at a nursing home is not cheap. The median annual cost of a private U.S. nursing home room rose to $77,745 in 2011 -- up almost 30% from 2005. People without chronic conditions have less costly options: It takes about $43,500 yearly to pay for a home health care aide who doesn't have specialized medical skills, and $39,000 to live in an assisted-living facility that provides help with daily activities like cooking but doesn't necessarily offer health care services.
If nursing homes continue to be squeezed, they may need to cut more staff. A November 2011 report by the University of California-San Francisco concluded that poor quality of care is already endemic in many nursing homes, especially the largest for-profit chains where staffing levels have been cut the deepest to save money. Parkinson maintains that so far, homes in his association are keeping up their level of service with less money by eliminating managers, freezing wages and cutting capital improvements like painting walls and replacing carpets -- anything to avoid laying off caregiver staff.
Bill Mulligan, a managing director at Ziegler Capital Management, which provides low-cost financing for nursing home developments, says that given the decreasing supply and rising demand, nursing homes are still a good investment. "The demographics are going to level off the number (of homes), maybe even increase it at some point," he says.
But Steinfeldt, who also works with developers, has little confidence in their profitability, asking, "Why would you go into a business that can't cover its costs?"
If major shortages of nursing home space do surface, they'll likely show up in urban and high-poverty areas first. Widespread waiting lists have already been reported in Tallahassee, Fla.; Rapid City, S.D.; and San Francisco. Homes also have been closing in poor neighborhoods. A study published last year in the Archives of Internal Medicine showed that nursing homes shut down there more often than elsewhere (the hardest-hit cities were New Orleans, Oklahoma City, San Francisco and Dallas).
And Medicaid patients may have an increasingly hard time finding nursing homes that will take them. When homes replace their old buildings, Kramer says, they often cut the number of beds to make space for more private rooms and sophisticated medical facilities that can attract the higher-paying Medicare and private-pay clients.
"Every adult is going to face this nursing home crisis in some way, whether it's through their own care or the care of loved ones," says McFadden. "Ignoring it is not going to make it better."
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I work in a healthcare & rehab center and I would like to add my two cents.....NOT ALL facilities are as bad as these people are commenting. I see SO much love and compassion where I work! The aides and nurses clearly LOVE what they do and it shows. No one wants their parents or loved ones to end up at a nursing home but unfortunately sometimes that is the only option. I see residents that are left here by family and have no visitors..truly devastating...BUT then I see the aides that consider those people family. I see the aides break down and cry when one passes. I LOVE my job and hope that with turn of events, these facilities remain.
You ought to get your facts straight. Try educating yourself, it helps. The article was very accurate. Being a baby boomer, I am stunned at the costs of care for the elederly. Unless you can afford the kind of supplemental insurance that covers RX meds and whatever medicare doesn't pay, as well as long term care, be it at home or in a facility, if and when needed, you will spend every penny you have (selling your house and spending all your retirement savings) to cover these insurance costs. forget dental...We have the highest costs in the world for health care (almost double the next highest costs), and still we have 10's of millions(upwards of 50 miliion)people have no access to primary care. More and more seniors are falling into the higher numbers, not affording those costs, with nothing but declining quality of care, and more cuts coming.Those stats given in the article give you an idea of where we're headed unless something drastically changes for the better. The costs of building more facilities are astronomical and corporate money is not going there (except of course facilities that cater to the wealthy). there are much more profitable ways to increase your billions then building nursing facilities..
With the pressure on the Bankrupt US Gov to cut back spending on both medicare and medicaid (unless it comes to the war machine-always money for that), we are looking at something horrific when millions of poor people will literally be in the street, or in miserable facilities with caregivers having to stretch the numbers to give any kind of basic health care for seniors over the next 10-20 yrs. Our friends on the right side of the political aisle are not concerned..."Entitlements" they are called. let them die.They, on the other hand, are all covered for life with that horrible Gov health care paid for them from our tax dollars. besides the fact they are wealthy to boot. Do more homework Tyrone and show me your facts and figures. This is isn't x-box 369, American Idol, or dancing with the stars.
set my bills on automatic, and leave me alone.When it is my time, it is my time. I would rather a cave in the woods than a nursing home.
My mother just passed in one of these Assisted Living homes. The residents called it "God's waiting room" as they feel that they are merely being warehoused until they pass. For $5,000 per month, mother received a 1 bedroom, 1 bathroom apartment and 3 meals a day. It would have been cheaper to have placed her on a cruise ship. At least there the food would have been better and the cost considerably less. But I digress, over 3 years I saw the company change hands twice and the staff reductions were constant. They cut costs further by reducing the quantity and quality of food. Personally, I have it written in my estate plan that if the family must choose between a nursing home or letting me die than they are to withhold all medications except pain medications and let me die. No way in screaming blue hades I want to pay for the privilege of rotting away in one of these places.
I too worked in the long term care industry as a dietary manager and I have seen both end of the spectrum. Those who are recieving federal funded medicare patients have more of a choice in placement. Those who are on medicaid which is state funded, tend to get the left overs.
These baby boomers should have thought twice about who they put in office 20 and 30 years ago.
There are many clients in nursing homes who can take care of them selves. They feed themselves,can walk around. talk OK. Assisted living places would suit them fine. Home care is a better option. Leave nursing homes for the very ill and those totally unable to care for themselves.
What this article says is that there is going to develop a TWO TIER system for Nursing Home long term care, just like what is going to happen with the rest of our health-care system if the ACA (i.e. Obamacare) stays in force. This is going to be the "Government Controlled/RUN", Single-Payer, Medicare tier for the "Poor" and those that have exhausted their families resources, and the second tier for the "Evil Rich" that planned for and took responsibility for themselves by saving for retirement, have private insurance, and can pay "out of pocket".
The "Medicare, Government, Single-payer" tier will have inferior care, rationed services, limited treatment options, medication limitations, and High occupancy housing configurations; ( for those of you that have never been under a socialized Government single-payer health--care system, that means you are housed on an OPEN WARD of 50 to 100 beds with One "nurse" or Orderly, NO PRIVATE OR EVEN SEMI-PRIVATE ROOMS. If you are classified and "ambulatory" you will be required to assist the staff in care of other patients, i.e. empty bed-pans, feed, bath, clean, etc.). The government "bean-counting" bureaucrats that will run this system will enact Euthanasia policies and panels, (Oh, Um I mean End of Life Counseling Panels according to the ACA), All of these measures will be implemented to "Control Costs".
The "Private Insurance" tier will be much as it is today, with private/semi-private rooms, Day rooms, Activities, Full Medical staff and facilities on-site, etc. These Facilities will not be "Medicare Certified" or accept Medicare/Government system patients. You can stay as long as you can pay.
There is no such thing as a "FREE lunch". Nothing is ever "FREE". In order for the Government to give someone something for "FREE", like say "Birth Control", they have to TAKE twice the Cost of that from someone else, because of the inefficient bureaucratic overhead inherent in ALL Government programs.
This is the "HOPE and CHANGE" you voted for. Hope the Democrats don't steal all you hard earned money, and Change the President in 2012.
This is not completely correct - many states have adult foster home programs which can meet the same needs as a nursing facility at about 1/3 the cost. This community based care is supported under Medicaid Waiver 1915C for those states that apply. Adult foster homes provide a home like environment so people feel they never left their home. They receive more personalized care in a warmer, non-institutional, setting.
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