Yet another South Dakota nursing home is closing its doors. According to the South Dakota Health Care Association, Avantara Arlington has announced its upcoming closure. As with other recent nursing home closures, the primary factors are a combination of the ongoing underfunding of Medicaid, the current staffing crisis, and costs related to the COVID-19 pandemic.
This marks the 7th nursing home closure this calendar year. Over the past six years, there have been 16 closures. Communities where closures have occurred include Elk Point, Armour, Salem, Lennox, Clear Lake, Ipswich, Custer, Hudson, Sioux Falls, Huron, Madison, Mobridge, Tripp, Bryant, and Rosholt.
“Many nursing homes have now gone from crisis to catastrophe,” said Mark B. Deak, Executive Director of the South Dakota Health Care Association. “Between longstanding Medicaid underfunding, the ongoing staffing crisis, and costs from COVID, nursing homes are facing unprecedented pressures. South Dakota communities where these closures have occurred are permanently losing access to a vitally important service for the elderly and disabled.”
South Dakota’s Medicaid reimbursement rates are below those of all our neighboring states. A recent report indicated that Medicaid reimbursement only covers 70.5% of the costs of care and recommended an investment of $62.5 million to bring the Medicaid reimbursement closer to covering the costs of care.
A significant majority (54%) of the total resident population in South Dakota nursing homes relies on Medicaid to pay for their care. In addition to the closures, this disparity fuels staffing challenges, including difficulty hiring caregivers and high turnover among nursing home staff. Improving ongoing Medicaid reimbursement is the most important step that must be taken to stop the closure crisis.
“Governor Noem is proposing a 21% Medicaid increase for nursing homes in her budget, which is very welcome news,” continued Deak. “With the legislative session beginning soon, I hope lawmakers will also see the need for quick action. Otherwise, it is all but certain that there will be more closures to come.”
Comments