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Nursing Home Closures and Bankruptcies: A Growing Crisis

Md. Parvez
nursing-home-closure

Nursing home closures and bankruptcies are creating a growing crisis across many states, putting tremendous pressure on existing nursing homes. These facilities are being forced to take on extra residents despite persistent workforce shortages and challenging staffing requirements on the horizon. This troubling trend profoundly affects residents, staff, and the healthcare system.


Case Study: Mountain View Care and Rehabilitation Center


In Pennsylvania, the abrupt closure of Mountain View Care and Rehabilitation Center on Friday led to the emergency evacuation of its residents. Providers at the facility pointed toward “physical plant issues” that contributed to the abrupt closure, but more details weren’t provided, according to a report from WBRE/WYOU. This sudden closure underscores the severe challenges nursing homes face, including infrastructure and maintenance.


Expert Insight from the Pennsylvania Health Care Association


Zach Shamberg, president and CEO of the Pennsylvania Health Care Association (PHCA), emphasized the gravity of the situation. "It is tough for providers to bring in residents without the number of staff available immediately," Shamberg told WBRE/WYOU. Many operators are scrambling to find solutions for the displaced residents and their families, highlighting the immense strain on resources and personnel.


A Nationwide Issue: Nursing home closure


This crisis is not isolated to Pennsylvania. Since February, abrupt nursing home closures have been reported in several states, including New Jersey, Missouri, California, and Vermont. These closures not only displace residents but also threaten the future availability of long-term care services. The factors driving these closures are multifaceted: a challenging economic environment, persistent staffing problems, frequent ownership changes, complex and punitive survey processes and fines, and shifting federal regulations.


Recent Developments in Pennsylvania


In Pennsylvania, the recent closure of Mountain View Care and Rehabilitation Center is just one part of a larger pattern. In recent weeks, a nursing home chain declared bankruptcy, and two facilities in Pittsburgh announced their closures just before the emergency evacuation at Mountain View. Shamberg expressed deep concern, stating, "If you have a loved one in long-term care, know that this is a very troubling trend we have seen in Pennsylvania."


The Role of Existing Facilities


We have stepped in to take some displaced residents in response to the Mountain View closure, Lakewood Rehabilitation and Health Care Center. This reflects the broader issue of existing facilities being forced to absorb residents from closed homes, often needing more staffing or resources.


Financial Pressures and Bankruptcy Filings


Adding to the problem, Atlanta-based LaVie Care Centers, which operates nine facilities in Pennsylvania, filed for Chapter 11 bankruptcy over the weekend. LaVie manages 43 skilled nursing and assisted living facilities across five states and employs 3,600 staff. Since the pandemic, the company has divested more than 90 facilities, highlighting the industry's immense financial and operational pressures.


Addressing the Crisis


To address this growing crisis, a multifaceted approach is needed. Increased funding and support from federal and state governments are essential to stabilize nursing homes and ensure they can meet staffing requirements. Investing in workforce development programs is crucial to train and retain skilled nursing staff. Streamlining regulatory processes and providing more predictable and fair enforcement can also help reduce the operational burden on nursing homes. Improved financial management practices and support for facilities facing economic hardships are also necessary to prevent further closures and bankruptcies.


Moving Forward


As the nursing home industry continues to navigate these challenges, policymakers, industry leaders, and communities must collaborate to find sustainable solutions. Ensuring the well-being of residents and the viability of nursing facilities is paramount to addressing the current crisis and securing the future of long-term care.

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