Advocates Cite Chronic Medicaid Underfunding as RI Facility Cuts 40 LTC Beds

Administrators at a 90-year-old Rhode Island skilled nursing facility announced in March they will cut the number of long-term care (LTC) beds from 74 to 34 this spring due to financial hardship, McKnight’s Long-Term Care News reported.

“This decision is necessary in order to ensure the long-term survival of our organization,” Scandinavian Communities, Cranston, Rhode Island, reportedly wrote in a letter sent to residents’ families. The letter said that to continue to operate all 74 LTC beds was “unsustainable” because of “significant operating losses” and ongoing financial problems. The facility will continue to operate its assisted living and rehabilitation services.

Facilities throughout the state are facing similar challenges from chronic Medicaid underfunding and growing costs, James Nyberg, executive director of LeadingAge Rhode Island, told McKnight’s. Since 2019, the shortfall between the cost of care and actual Medicaid reimbursement has nearly tripled to $70 per resident per day.

Scandinavian Communities said it, along with the Rhode Island long-term care ombudsman, would work with residents and staff to find alternative accommodations during the 30- to 45-day transition.

Since 2022, at least half a dozen nursing homes in Rhode Island have shut their doors and three have entered receivership, McKnight’s reported. Others, like Scandinavian Communities, have reduced the number of LTC beds offered.

“We are working with state officials to try and mitigate this crisis by providing additional funding for nursing home providers,” Nyberg told the publication.

Reference

Henreckson J. 90-year-old nursing home guts long-term care amid ‘unsustainable’ Medicaid funding. McKnight’s Long-Term Care News. March 19, 2024. Accessed March 26, 2024. https://www.mcknights.com/news/90-year-old-nursing-home-guts-long-term-care-amid-unsustainable-medicaid-funding/