WASHINGTON, D.C. – Today, the American Health Care Association (AHCA) released its 2024 State of the Sector Report, highlighting a recent survey of 441 nursing home providers. The findings of the survey reflect the current state of the nursing home sector, which despite ongoing investments, is struggling to rebuild its workforce and recover from the pandemic. Providers are also concerned the finalization of the Centers for Medicare and Medicaid Services’ (CMS) federal staffing mandate for nursing homes would make matters worse.
“Our updated State of the Sector Report demonstrates clearly what nursing home providers across the country already know: the ongoing labor shortage is nothing less than a crisis for our sector,” said Mark Parkinson, President and CEO of AHCA. “Nursing homes want to strengthen their workforce, but they cannot do it alone. We need collaborative solutions, not one-size-fits-all mandates, to protect access to care for all seniors.”
Highlights from the survey include:
Continued Workforce Shortages
- Ninety-nine percent of nursing homes currently have open jobs, including 89 percent who are actively trying to hire for registered nurse (RN) positions.
- Seventy-two percent of nursing homes say their current workforce levels are lower than pre-pandemic staffing levels.
- More than half of nursing homes say their workforce situation has stayed the same or gotten worse.
Facilities Are Implementing Strong Recruitment And Retention Efforts, Lack Of Interested Or Qualified Candidates Primary Obstacle
- Ninety-four percent of facilities say it is difficult to recruit new staff with 67 percent of facilities citing a lack of interested or qualified candidates as an extremely big obstacle.
- Ninety percent of nursing homes have increased wages in the past six months.
- Seventy-eight percent have offered bonuses, including sign-on bonuses.
- Seventy percent have promoted staff within their facilities.
- Sixty-nine percent of facilities have paid for staff training and education.
Nursing Homes Are Limiting Admissions And Concerned About Closures
- Forty-six percent of nursing homes have limited new admissions, with 38 percent having to turn away residents weekly and/or monthly, and seven percent having to turn away residents daily.
- Nearly 20 percent have closed a unit, wing or floor because of labor challenges.
- Sixty-six percent of facilities are concerned that if their workforce challenges persist they may have to close their facility.
The survey also found that 45 percent of facilities are operating at a loss or negative total margin, and 56 percent are currently struggling with occupancy.
Nursing homes saw the worst job losses during the COVID-19 pandemic compared to any other health care sector, and still need more than 130,000 workers to return to pre-pandemic levels. The federal staffing mandate would require nursing homes to hire an additional 100,000 caregivers at a cost of nearly $7 billion annually. If nursing homes are unable to achieve these unrealistic standards, more than 280,000 nursing home residents, or nearly one-quarter of all residents, could be displaced as facilities would be forced to downsize or close.
Read the full State of the Sector Report HERE.