Nursing Home Industry Projects $34B in Revenue Losses, 1,800 Closures or Mergers Due to COVID
The COVID-19 pandemic brought the twin financial strains of elevated expenses and sharply reduced sources of revenue for the nation’s nursing homes as they became an epicenter of sickness and death, and a major industry trade group this week painted a dire operational picture for the year ahead.
Nursing facilities will lose a total of $22.6 billion in revenue during 2021, according to a new projection from the American Health Care Association, as occupancy — the primary driver of income for facilities — remains at record lows.
On top of an $11.3 billion decline already seen in 2020, that would brings the COVID-19 financial toll to $34 billion, or a decline of 24%, even as expenses related to staffing, personal protective equipment (PPE), and routine testing sit at an estimated $30 billion per year for 2020 and 2021.
Read the full article from Skilled Nursing News.
