In a recent Roanoke Times op-ed, Keith Hare, highlights the ongoing needs of Virginia’s nursing homes and also notes that for years Virginia’s nursing homes have been reimbursed by the state’s Medicaid program at a rate lower than the total amount it costs to care for residents. Hare writes: “It is clear that Virginia’s nursing homes are still in need of continued support to care for residents through the duration of the COVID-19 pandemic. The pandemic has hit long-term care communities hard, and continued assistance will provide nursing homes with the necessary PPE, staffing and testing to protect Virginia’s most vulnerable.”

Read the full piece: Hare: Virginia’s Nursing Homes Need A Solution (roanoke.com, September 6, 2020)

Our loved ones in long-term care communities have been hit hard by COVID-19. Since March, Virginia’s nursing homes have faced rising costs to care for residents coupled with strained medical resources, presenting our long-term care communities with difficult challenges. However, Virginia’s caregivers remain committed to protecting residents. Through long days and nights, they are putting the needs of others first.

Currently, more than 60% of Virginia’s nursing home residents are Medicaid beneficiaries. Unfortunately, Virginia’s nursing homes have been reimbursed by the state’s Medicaid program at a lower rate than the total amount it costs to provide care to residents. Nursing homes receive approximately $196 per day per resident. Compare this to the national average of $220 each day — a difference of more than 10%.

The limits on elective hospital procedures at the beginning of the pandemic have also meant fewer individuals have needed nursing care. Even when individuals do not need nursing services, our facilities are at the ready to care for patients and residents. Over the past five months, associated revenue losses are estimated to have reached an alarming $141 million. It remains uncertain on when or even if Virginia nursing homes will begin to show signs of financial recovery.

This is particularly concerning, as prior to COVID-19, four in 10 nursing homes in Virginia were already experiencing operating losses, and the average operating margin (net revenue over expenses) across the sector was below 2%. The estimated revenue loss for the past five months already equates to a 5.9% reduction to annual net operating revenue, and these losses will continue to grow.

As facilities are struggling financially, the costs of care have steadily risen throughout the pandemic, and resource needs remain significant for many of Virginia’s nursing homes.

The Centers for Medicare and Medicaid Services (CMS) is expected to formally announce it would begin mandating that facilities in states with above a 5% positive testing rate test all facility staff on a weekly basis. In Virginia, the percentage of positive COVID-19 tests is 6.6%. Unfortunately, a significant percentage of Virginia’s nursing homes are in need of additional personal protective equipment (PPE) to safely implement these testing requirements. In fact, CMS recently reported that 14% of facilities in Virginia do not have a seven-day supply of surgical masks and gowns, while nearly 20% do not have a seven-day supply of N95 masks.

Thankfully, in April, Governor Northam and the General Assembly approved a $20 per day per patient funding increase to meet the ongoing needs of nursing homes. However, as the crisis rages on, the costs to care for residents are continuing to rise — putting an even greater strain on Virginia’s nursing homes.

As the legislature meets for a special legislative session, we are asking that Governor Northam and the General Assembly extend the $20 per patient Medicaid funding increase through next summer to cover all approved COVID-19 costs necessary to care for long-term care residents.

It is clear that Virginia’s nursing homes are still in need of continued support to care for residents through the duration of the COVID-19 pandemic. The pandemic has hit long-term care communities hard, and continued assistance will provide nursing homes with the necessary PPE, staffing and testing to protect Virginia’s most vulnerable.

While lawmakers must address the short-term needs of Virginia’s nursing homes, it is important that policymakers implement long-term solutions that will enable nursing homes to continue to provide a high level of care to residents.