The COVID-19 pandemic is plunging U.S. nursing homes into a major financial crisis and many of them could go out of business, says a survey released by the industry’s trade association, the American Health Care Association/National Center for Assisted Living, or AHCA/NCAL.
In a poll of nearly 500 nursing home operators, 72%, said they couldn’t keep going for another year under current conditions while 55%, said they were running at a loss. As politicians on Capitol Hill grapple with another rescue package, nearly all nursing home operators—92%—say they’ve received financial aid during the crisis, and 58% say they’ll face “significant” financial problems when it ends.
University of Alabama Health Administration professor Robert Weech-Maldonado, an expert in the field of nursing home economics, says the findings of the survey are credible and even unsurprising. The pandemic has forced homes to spend a lot more money, especially on extra staff and personal protective equipment.