Nursing homes brace for financial cuts.
Read more: Local, State, Economy, Health, Business, Community, Norlite Nursing Center, Marquette, Medicare, Medicaid, Funding
MARQUETTE -- Nursing home providers in nearly 450 Michigan facilities are fighting proposed state-level cuts that could be devastating, but the industry is already reeling from an enormous financial blow. Over the next 10 years, the nation's 16,000 nursing homes will be impacted with cuts up to $16 billion in Medicare funding.
"We're regulated by the federal and state government to provide certain items for the residents and provide certain staffing that we really can't cut," said Maila Tiffany, administrator of Norlite Nursing Center in Marquette.
Tiffany has been busy trying to balance her budget in light of the recent Medicare rate adjustment and the proposed state reductions of 1.4 percent in Medicare and 8 percent in Medicaid. Tiffany says those kinds of the losses could be devastating, especially when 80 percent of Norlite's residents are on Medicaid.
"Imagine trying to pay for your home on less dollars every month; it's just not something you can do," said Sandra McGobern.
McGobern is the director of nursing at Norlite. She's not only concerned for her patients, but her staff; salaries could be slashed to make up for loss of dollars.
The funding crisis couldn't come at a worse time as the U.S. baby boomers reaches a point when they made need nursing home care.
Last year, 1.85 million people were housed in nursing homes nationwide, up from 1.79 million in 2007.
"But if the monies are not there, who's going to pay for it?" Tiffany said. "I see that it's a problem for the elderly."
As for the state cuts, nothing has been finalized yet. However, the proposed legislation along with what has already been lost could cause problems for facility operations and patient care.
