An unprecedented wave of nursing home closures is hitting South Dakota, fueled by what advocates say is “chronic underfunding” of Medicaid.
Three nursing homes have shuttered in as many years, with two more slated for closure by February. Another 18 of the state’s nursing homes — plus one assisted living facility — are in the hands of a court-appointed receiver after Skyline Healthcare went bankrupt, the South Dakota News Watch noted in a lengthy report last week.
“I believe we really are at a pivotal place right now,” Mark Deak, executive director of the South Dakota Health Care Association told the website. “When you have 18 nursing facilities in receivership, that’s never happened in the history of the state.”
South Dakota’s troubles aren’t unique. The state’s nursing home industry has been besieged by increasing costs of care, a shortage of employees, declining population and low reimbursement rates from government payers. A recent survey found that South Dakota has some of the lowest Medicaid payment rates at $131 per day. With that, local nursing homes are losing $32 a day on Medicaid beneficiaries, or $39 million a year statewide.
All told, South Dakota has about 110 nursing homes totaling about 6,800 beds, with more than half of residents on Medicaid.
Gov. Dennis Daugaard (R) anticipates $53 million in new spending in the next fiscal year, with a 2.3% hike for Medicaid providers.
“It really comes down to the equation: Do we have the will to use the dollars we have available because the chronic underfunding of long-term care is coming home to roost,” Deak said.
