Virginia Nursing Homes Urgently Need a Solution to Underfunding

Virginia’s nursing homes have been at the center of the fight against COVID-19 since the pandemic began. Our nursing homes have worked diligently to keep the most vulnerable among us safe, even in the face of insufficient resources and rising costs of care to combat COVID-19.

We are grateful for the $20 per-patient, per-day increase for nursing home care provided by Gov. Northam and the General Assembly; however, our resource needs remain significant. Nursing homes need continued financial support to ensure they can keep residents safe and provide quality care during the pandemic and beyond.

Medicaid is the primary payer of long-term care services.

GraphMore than six in 10 Virginians in nursing homes rely on Medicaid, and for years, nursing homes have received Medicaid reimbursements below the total cost of approved care. Virginia’s nursing homes are only reimbursed on average $196 per day for each Medicaid resident they care for – more than 10% below the national average of $220 per day.

Many elderly adults living in nursing homes have outlived or exhausted their savings and rely on Medicaid benefits for their continued care. Medicaid underfunding of the cost of resident care puts the financial stability of nursing homes at risk, which could have implications for access to care for future residents.

The COVID-19 pandemic highlights the need to keep increased funding for nursing home care in place.

As the pandemic continues, the need for personal protective equipment (PPE), staffing, testing, and critical supplies to support Virginia’s nursing home residents and caregivers will remain.

During the 2020 special session, VHCA-VCAL asked Gov. Northam and the General Assembly to come together to provide a short-term solution to continue to meet the current needs and help our most vulnerable community by continuing the policy of increasing Medicaid reimbursements by $20 per day for each nursing home resident who receives Medicaid through June 30, 2021. This funding was included in the budget and will support approved COVID-19 costs and help keep our nursing home residents as safe as possible. 

Moving forward, we will need to adopt a long-term solution.

Virginia needs long-term solutions to ensure Medicaid nursing care is adequately funded. We must implement sustainable policy solutions that protect our vulnerable, high-risk residents in the years to come to ensure they have access to the high-quality care they deserve. Without a solution, nursing homes will struggle to meet the needs of future generations.