Survey Finds Most Nursing Homes Struggling With COVID-19 Costs, Problems

BIRMINGHAM, Alabama (August 14, 2020)—More than half of all United States nursing homes that responded to a survey are operating at a loss and 72% say they can’t sustain operations for a year at their current pace, according to a new report by the American Health Care Association (AHCA).

Almost all participants—97%—said they had lost revenue due to the outbreak of COVID-19. Most also said that paying for personal protective equipment, hiring new staff, providing tests and paying staff extra had significantly driven up their costs.

The survey was conducted by the AHCA and the National Center for Assisted Living between August 8 and 10 and included 463 nursing home providers.

The report also found:

• 89% of respondents are operating either at a loss or with a profit margin of 3% or less
• 40% said they couldn’t sustain operations as-is for six months
• 90% said PPE supplies had driven significant cost increases
• 95% included PPE supplies in their top costs
• 74% included COVID-19 testing in their top costs

Advocates for nursing facilities have been pushing Washington to provide additional funding for testing, PPE and other support for the industry. At least 40% of all known U.S. deaths from coronavirus have occurred in long-term care facilities.

In the survey, 93% of nursing homes said government funding is extremely or very important to help them with COVID-related costs and losses.