The situation is devastating.
The destructive sweep of the COVID-19 virus which is disrupting our lifestyle and daily lives is significantly impacting those in the throes of a long-term care event. They are especially vulnerable. But that is just the short term.
What are the longer term issues when your clients need long-term care. If they fortunately still have their heath and can only contemplate having a major health change down the road, will they be impacted? The answer is unequivocally yes!
(Related: Hospice Care and Medicare: LTCI Insider)
I just completed a white paper that addresses the impact of COVID-19 on the long-term care continuum. To obtain this information, I surveyed numerous top people in the long-term care industry — people who have insider information. This article is an overview of what they shared.
The Impact on Nursing Homes
The impact on the nursing home industry has been catastrophic!
With occupancy rates plummeting, this industry is in deep financial trouble.
The American Health Care Association and the National Center for Assisted Living (AHCA/NCAL) conducted a survey of 953 nursing home providers across the U.S. on their financial and staffing challenges.
- Two-thirds of nursing homes operators say they won’t make it another year given current operating pace due to increased COVID-19 costs.
- 90% of nursing homes are currently operating at a loss or less than 3% profit margin.
- 65% are currently operating at a loss.
At the same time, revenues are taking a beating. Nursing homes are suffering from the loss of lucrative post-acute rehabilitation and other care for patients recovering from surgery, strokes and the like. Potential long-term care residents are reluctant to move in.