With two more South Dakota nursing homes planned to close in the near future because they can’t cover operating expenses, the South Dakota Health Care Association says it will push legislators to invest more in elderly care facilities during the 2019 legislative session.
The proposed closures in Madison and Mobridge are the latest in a string of recent closures, including homes in Tripp, Bryant and Rosholt.
South Dakota Health Care Association executive director Mark Deak says the proposed nursing home closings further prove that increased Medicaid funding for long term care is desperately needed. He says it’s critical the industry change course.
Low Medicaid reimbursement rates cause an average loss of $32.24 per day, per resident, with 57 percent of the total resident population relying on Medicaid to pay for their care.
SDHCA says the losses also cause difficulty hiring caregivers and make for high turnover among nursing center staff. For this, Low reimbursement rates are a primary driver of closures. Closures that will inevitably continue without additional funding.
In order to close, a nursing facility must provide the South Dakota Department of Health, residents and their families with 60 days’ notice and ensure all patients have appropriate transfer plans in place prior to closure. Black Hills Receiver has notified the department of health and has submitted closure plans to ensure federal requirements are met. In this case, since the facility is also in receivership, Black Hills Receiver also needs permission from the sixth circuit court in order to close the two facilities.
If closure is approved, the earliest date the locations could close is January 31, 2019.
