Washington, D.C. — Since the beginning of COVID-19 almost a year ago, nursing homes and extended care facilities have been financially burdened.
On a business model that makes margins on scalability, these facilities have had to bring on additional staff and procedures to try to protect the at-risk population they serve.
As of August, the American Health Care Association and the National Center for Assisted Living reported that 97% of facilities lost revenue as a result of increased spending on labor, training, and preventative measures related to COVID-19.
The results of which have been devastating to the industry.
That same report had 55% of U.S. Nursing Homes reporting that they were operating at a loss, with 72% saying they had less than a year of sustainable operations.
With the most recent COVID package, half a billion dollars will be directed towards trying to keep these care facilities afloat.
Some insiders, however, question this move in light of the failures of these businesses to protect their resident populations — 68% of national deaths come from long-term facilities.
At the very least, it is expected that the incoming Biden administration will establish new rules and regulations to go along with this relief package, something that his political allies at the AARP have been quite vocal about.
It will be interesting to see what happens in the coming months as new regulations and relief funds come down the pipeline.
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