COVID-19 Financial Pressures Mount for Senior Living

COVID-19 financial pressures are mounting, and many Texas nursing and long-term care communities are staring bankruptcy in the face unless lawmakers offer practical solutions – something that is only possible if the 87th Texas Legislature makes supporting older adults and non-profit aging services a priority.

Even as vaccines arrive at nursing homes across Texas, bringing with them great hope, this battle against COVID-19 is far from over. The statewide effort announced by Governor Greg Abbott last month has been sluggish, and comes with major challenges. It is no silver bullet.   

Right now, older adults and the providers who care for them are at the center of the storm. Daily cases and deaths in Texas have hit new records. Those 65 and older currently make up 10% of the total cases, yet account for more than 70% of the state’s death toll. To date, we have lost 20,000 older Texans – over 8,000 of them residents in long-term care communities. 80 long-term care workers have also died.  

The 87th Texas Legislature convened last week for what’s sure to be the most unusual session of our lifetime. On top of logistical challenges due to COVID-19, legislators will be faced with tough policy decisions. Texas’ long-term care communities have been on the front lines of COVID-19 for 10 months, and they need continued support and resources to continue saving lives.

Along with vaccine access, testing remains a critical tool for keeping older Texans safe, and reuniting them with family and friends. Current community surges in most of Texas (which experts link to increased cases in nursing homes), make testing more important than ever before.

Initially, the federal government provided financial support but it didn’t last long. To comply with testing requirements providers are forced to pay out-of-pocket. Expenses for testing in a 150-bed nursing home can range from $3,750-$15,000 per week, depending on staff totals and local positivity rates. This does not account for staff time, PPE, reporting, coordination, collection of specimens, or any other costs related to completing the testing. Beyond increased testing costs, providers are spending more on PPE and staffing, all while experiencing huge losses in revenue.

Texas has made some resources available for testing, emergency staffing, and PPE which are helpful if you can access them. Supplies are limited. One rural non-profit nursing home spent an additional $200,000 on testing and staffing resources in one month alone. This isn't sustainable. Almost ¾ of nursing homes (72%) reported they will be unable to maintain operations for another year at this rate—and 40% said they would last less than six months.

Before the pandemic, Texas faced a workforce shortage in long-term care that threatens quality care and patient safety. COVID-19 has only exacerbated the crisis. According to federal data from August 2019, Texas nursing homes ranked first in the nation in nursing staff shortages. This year it is critical the Legislature act to recognize the heroic efforts of our workforce, and pass initiatives to strengthen it so older Texans have access to the services they need. The odds are most of us will. It is estimated that 70% of Americans 65+ will need some form of long-term services in the future.

Non-profit aging services providers are committed to caring for older Texans, but without additional support, the resources necessary to care for those we serve and regulatory requirements are financially and administratively unsustainable.

Even once the vaccine is administered in our communities, testing, PPE, and the ability to fully staff will remain critical. Nursing homes and other long-term care settings are a vital part of our health care system. Without support from the Texas Legislature, we risk losing a precious resource so many older Texans and their families depend on. We must do more to support the providers that are fighting for our parents, grandparents, and loved ones.

CONTACT: 
Alyse Meyer
VP of Advocacy 
LeadingAge Texas
512-467-2242 x105