WARWICK, R.I. (WPRI) — A national report surveying the financial health of nursing homes across the country showed most facilities in Rhode Island are at risk of closing.
The report, which was commissioned by the American Health Care Association (AHCA), analyzed Medicare data through September 2021 and found 87% of nursing homes are in financial trouble, an increase of 68% from 2019.
The data also indicated that 95% of nursing homes in the state were losing money.
John Gage, president of the Rhode Island Health Care Association (RIHCA), released a statement saying the financial uncertainty of these facilities was caused by a multitude of issues.
“The combination of chronic underfunding by Rhode Island Medicaid (a quarter of a billion dollars over the past decade), an historic workforce shortage (with 21% of nursing home workers lost in the past 2 years) and rampant inflation driving up the everyday costs to operate the homes, have created an existential threat to the future viability of Rhode Island nursing homes,” Gage explained.
Five nursing homes in Rhode Island have closed their doors since the start of the pandemic, according to the report.
Citing data from the Federal Bureau of Labor Statistics, the report said the state’s nursing home workforce lost more than 20% of its workers since 2019.
Accounting and consulting firm Clifton Larson Allen LLC (CLA) published the report.