Nursing home operators in Florida will see an 8% increase in their Medicaid funding, amounting to $247.8 million, or approximately $470,000 per facility. This increase is part of the Focus on Florida’s Future Budget for Fiscal Year 2024-2025, recently signed by Governor Ron DeSantis. The aim is to support the growing demand for caregivers and the needs of residents in Florida’s nursing homes.
Support from the Florida Health Care Association
Florida has 706 nursing homes with an average occupancy rate of 86.7%. The Florida Health Care Association (FHCA) praised Governor DeSantis for his support of the sector. Emmett Reed, CEO of FHCA, stated, “Governor DeSantis has shown his commitment to Florida’s seniors and those who care for them. This investment reflects his leadership and vision for the future as we prepare for a significant increase in Florida’s senior population over the next decade.”
Addressing the Nursing Shortage
Labor costs have always been a significant expense for nursing home operators. Luke Neumann, Senior Vice President of Service, Brand, and Communications for Palm Garden Healthcare in Florida, highlighted the ongoing efforts to address the nursing shortage: “We’ve been working hard to overcome the nursing shortage in Florida by increasing wages, enhancing training programs, and offering tuition reimbursement to help our team members grow professionally. This funding increase will allow us to support our staff, who positively impact our residents every day.”
Future Population Growth and Job Demand
Florida is expected to add about 250,000 new residents annually through 2030, with about 57% of these residents aged 60 and older. Between 2020 and 2030, the sector needs to fill 235,000 job openings in direct care, including 25,000 new jobs, to meet rising demand. An additional 210,000 job openings will replace workers who leave the labor force or transfer to new occupations.
Reed expressed gratitude to the Governor and the Legislature, stating, “We are deeply grateful for paving the way so that Florida can continue to be the gold standard in delivering high-quality care to our state’s seniors today and into the future.”
Federal Staffing Mandate Challenges
The federal staffing mandate has also introduced the need for more funds to cover the minimum requirements for clinical workers. Nearly 75% of Florida’s facilities currently cannot meet these requirements, and about 3,800 additional nurses and nurse aides would need to be hired to comply. This represents an extra $226 million cost per year for Florida operators.
FHCA expects the federal mandate to undermine Florida’s existing staffing standards and progress made to enhance care. However, a previous study from AARP Florida linked the new state standards to higher hospitalizations. FHCA has attributed this increase to the workforce crisis.
Florida’s Staffing Requirements
Florida is one of about three dozen states that have implemented their minimum staffing requirements. Currently, Florida law requires two hours of certified nursing assistant (CNA) care per resident daily and at least one hour of care per resident provided by either registered nurses (RNs) or licensed practical nurses (LPNs).
In contrast, the federal rule mandates a minimum of 3.48 hours per resident per day (HPRD) of total staffing, with specific allocations for RNs and nurse aides. This includes 0.55 HPRD of direct RN care and 2.45 HPRD of direct nurse aide care. Facilities can use a mix of RNs, LPNs/LVNs, or nurse aides to meet this standard. This is a change from the proposed version of the rule in September 2023, which called for 3 HPRDs of care and excluded licensed practical nurses. Florida aims to ensure high-quality care for its growing senior population by addressing the funding and staffing needs.
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