The Biden administration recently issued regulations mandating specific staffing levels for most nursing homes, leading to the need for roughly three in four facilities to hire more personnel. Progressives believe these rules will result in improved care for residents, with Vice President Kamala Harris stating that it will lead to more staff, potentially reducing ER visits and promoting independence, providing peace of mind for families.
However, addressing staffing shortages in nursing homes goes beyond government mandates. Low reimbursement rates from Medicaid have long made it challenging for facilities to attract and retain employees. Simply instructing nursing homes to hire more staff does not solve this underlying issue.
A survey by the American Health Care Association in March revealed that 99% of nursing homes have job openings, with a significant demand for registered nurses. While many facilities have raised wages and invested in staff training, the shortage of professional caretakers persists. The demanding nature of the work has led to burnout among registered nurses, with the COVID-19 pandemic exacerbating job fatigue.
President Biden’s new regulations may not effectively bridge the gap between supply and demand for caregivers. Instead, nursing homes may be forced to increase wages to compete for scarce workers, potentially costing the industry billions over the next decade. Medicaid’s low reimbursement rates also pose a financial challenge for facilities, as they struggle to cover the cost of care.
Nearly 20% of nursing homes have been forced to close units or floors due to staffing issues, and many fear they may have to shut down entirely. The Biden administration’s regulations could exacerbate this problem. Addressing the root causes of staffing shortages in nursing homes requires a comprehensive approach that considers the financial realities faced by these facilities.
