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New York Association of Homes & Services for the Aging

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Legacy Doc ID# 14408406 

For Release:  IMMEDIATE   January 29, 2004

Contact:  Daniel Curran 518-449-2707, ext. 124 518-369-6890 (cell)

Nursing Homes Fighting for Survival, NYAHSA Says
New Report Shows Dire State of Nursing Home Finances in New York State

(ALBANY) – A new report issued today by the New York Association of Homes & Services for the Aging confirms the downward spiral of nursing home finances and shows that any cuts in reimbursement rates increase the likelihood that additional nursing homes in the state will close in 2004. Eight nursing homes representing more than 600 beds closed in New York state in 2003, with others currently in bankruptcy proceedings.

“NYAHSA’s new report shows that New York’s not-for-profit, mission-driven and public nursing homes are fighting for survival,” said Carl S. Young, president of the New York Association of Homes & Services for the Aging (NYAHSA).  “The difficulties many providers are experiencing are not the resultof a ‘bad year’ or a temporary setback from which they can easily recover.  These are symptoms of organizations under severe stress that have seen their financial condition deteriorate year after year due to funding cuts and a woefully outdated Medicaid reimbursement system.”

Based on a detailed and comprehensive analysis of three years’ worth of certified financial statements for over 500 nursing homes – not-for-profit, proprietary and public facilities – NYAHSA’s new report, “Fighting for Survival:  The Dire State of Nursing Home Finances in New York State” reaches dire conclusions, including:

1. Most of the nursing homes in New York state lost money on operations in 2002.

2. 2002 marks the first time in recent memory that nursing homes as a group lost money from operations.

3. For the first time, the total bottom-line performance for all nursing homes was negative. 

4. The number of nursing homes with bottom-line losses increased by 61 percent from 2000 to 2002.

5. Rural nursing homes, often the only providers in their communities, were in worse financial health

than their urban counterparts.

6. All public homes in the study lost money, due in part to a reduction in federal Medicaid funding.

7. More than a third of not-for-profit nursing homes face a heightened risk of bankruptcy or insolvency.

"NYAHSA and its members commend the state Legislature and the governor for taking steps toward refining the nursing home payment system and Medicaid more broadly, and we look forward to working with state lawmakers on common goals,” continued Young.  “As important as fundamental reform is, however, the data in this report shows that many providers may not survive long enough for fundamental changes to take place. The state must provide immediate assistance to those facilities that are on the brink of financial disaster, reject additional rate cuts and act decisively to ensure the future of other facilities and the people they serve.”

Copiesof this report and others are available at www.nyahsa.org.

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Founded in 1961, the New York Association of Homes and Services for the Aging is the only statewide organization representing the entire continuum of not-for-profit, mission-driven and public continuing care, including nursing homes, senior housing, adult care facilities, continuing care retirement communities, assisted living providers, and community service providers.  NYAHSA’s more than 650 members serve an estimated 500,000 New Yorkers of all ages annually.