|Tax Increase Forcing Ohio Skilled Nursing Facilities to Make Cuts|
Survey Shows Tax Increase Forcing Ohio Skilled Nursing Facilities to Make Cuts
“Because the provision of long-term care services is labor intensive and Ohio’s providers have had to ‘make do’ for so long, there are few areas where reductions can be made without directly impacting workers or resident care,” said Van Runkle. “Our survey raises concerns that some homes may close or be forced into bankruptcy as a result of the increased fees.”
The Association has sent a letter asking the legislature to reduce the bed tax back to the original $6.25 level.
Another study released last week showed that Ohio ranks third in states with long-term care underfunded by Medicaid, to the tune of $306 million per year. The Eljay LLC analysis of the nation’s Medicaid financing system finds seniors in the states of New York, Illinois and Ohio will bear the brunt of Medicaid payments that do not cover operating costs.
“Our members tell us that they are in trouble, and they are concerned about their residents, their employees and their businesses,” said Van Runkle. “New lines of credit are not available and existing credit is being cancelled because banks are unsure of facilities’ ability to pay. Payments to vendors and creditors are being delayed. Facilities are reducing their participation in employee retirement funds, and the impact on morale is incalculable. We have worked hard to prevent any impact on patient care – but at some point it is inevitable."
“Every dollar affects the care of some of the most vulnerable citizens of this state,” he added. “The prospect of still more cuts and the human cost they would entail is frightening.”
The Ohio Health Care Association is a non-profit association of more than 700 skilled nursing facilities, assisted living residences, and facilities for people with developmental disabilities, caring for nearly 60,000 Ohioans. It is the largest long-term care association in the state, and the only chartered Ohio affiliate of the American Health Care Association, representing more than 12,000 long-term care facilities nationwide.
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