It is certainly solid to suggest that the entire national infrastructure is in bad need of an overhaul.
Cuts in government payments for patient care and less construction of new nursing homes are already taking a toll. The first baby boomers hit age 65 last year. By20 percent of the U. In that same period, the number of year-olds will increase more than 50 percent and the number of year-olds nearly triple.
But the number of nursing homes dropped almost 9 percent from to Most people say they want to age at home, but as retiring boomers get older, more will need the type of hour care that only a nursing home or hospital can offer. Fifty-five percent of all cancers are diagnosed in individuals 65 and older, and by7.
Bythe number of those 65 and older with diabetes is projected to almost double to Several trends are cutting into the number of nursing homes. But the recession has made getting private financing for new nursing home construction tougher.
From tothe number of under-construction nursing home units the sections of a facility that provide only nursing care declined by a third. And existing nursing homes are struggling. They long have lost money on patients whose stays are covered by state-run Medicaid programs, which pay for long-term care for chronically or terminally ill patients who have run out of money.
Making matters worse, last year the federal government also cut its reimbursement rates by 11 percent to nursing homes for Medicare patients—people released from hospitals to nursing homes who need short-term care to recover from injuries or acute illnesses.
Medicaid provides about 50 percent of revenues, and most of the rest comes from private long-term care insurance and people who pay out of pocket. Many clients sell their homes and use the money to pay out of pocket for long-term care services from a nursing home.
McFadden says that the private-paying clients his home serves used to run out of money in two or three years.
Residing at a nursing home is not cheap. The median annual cost of a private U. If nursing homes continue to be squeezed, they may need to cut more staff.
Parkinson maintains that so far, homes in his association are keeping up their level of service with less money by eliminating managers, freezing wages, and cutting capital improvements like painting walls and replacing carpets—anything to avoid laying off caregiver staff.
Bill Mulligan, a managing director at Ziegler Capital Management, which provides low-cost financing for nursing home developments, argues that given the decreasing supply and rising demand, nursing homes are still a good investment. But Steinfeldt, who also works with developers, has little confidence in their profitability: Homes also have been closing in poor neighborhoods—a study published last year in the Archives of Internal Medicine showed that nursing homes shut down there more often than elsewhere the hardest hit cities were New Orleans, Oklahoma City, San Francisco, and Dallas.
And Medicaid patients may have an increasingly hard time finding nursing homes that will take them—Kramer says when homes replace their old buildings, they often cut the number of beds to make space for more private rooms and sophisticated medical facilities that can attract the higher paying Medicare and private-pay clients.
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· The Long-Term Care Financing Crisis.
At least 70 percent of baby boomers are expected to need some LTC Met Life Mature Market Institute, “Market Survey of Long-Term Care Costs timberdesignmag.com /the-long-term-care-financing-crisis. Abstract. Purpose of the Study: Little is known about adults’ future planning for long-term supports and services (LTSS), and no studies have examined how LTSS planning compares between Baby Boomers and their parents’ generation.
The primary aim of this study is to examine the potential influences of birth cohort and gender on LTSS timberdesignmag.com://timberdesignmag.com Both of these programs pay for long-term care for people who are poor and chronically or terminally ill.
But nursing homes have long lost money on residents covered by Medicaid programs. · Already, a growing number of older Americans are developing chronic diseases but can't cover the costs of long-term care in a nursing facility, the timberdesignmag.com Jun 07, · Baby Boomers love disparaging younger generations but the fact remains, they are the worst generation by a huge margin.
· MONDAY, June 30, -- With higher rates of illness but fewer adult children to care for them, many of America's baby boom generation may find themselves unable to pay for the nursing home care they need, a new study timberdesignmag.com://timberdesignmag.com