US Nursing Homes Face Risks of Closure Due to Staffing Shortages

    Bloomberg News reports that almost three-quarters of the nursing homes have said that they face the risk of shutting down due to a shortage of staff, and more than half of them have been operating at a loss, as per a survey. If things do not look up or improve, most of them fear that the resources will not be adequate to keep them running in the business for more than 12 months.

    The impact of staff shortage

    The expenses are around 41% more than what it was one year ago, and more than 50% of those polled revealed that getting workers is becoming even more difficult in the current year, according to an American Health Care Association study released on Monday. The shortage in staff is compelling homes to turn down requests from potential residents when there is significantly less occupancy than the pre-pandemic levels.

    The survey was conducted with 759 facilities in the previous month and indicated pressures are beginning to ease in the beleaguered sectors. The industry lobbying group AHCA has stated that more than 400 facilities face this risk of closure in the current year as homes are trying to tackle the higher cost of labor and supply and lower enrollment.

    According to Bloomberg News, Suzanne Koenig, who is a nursing home turnaround expert and heads the SAK Management Services, revealed that they are at a juncture that is very critical in the senior housing industry, with greater support required from the state and the Federal governments.

    The industry has invited greater scrutiny following the Covid-19 sweeping through the facilities and killing more than 150,000 residents. There is a proposal from The White House related to regulation to improve the quality and decrease the turnover, including a minimum requirement for staff.



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