Nursing homes plea for substantial hike in Medicaid reimbursement rate in new state budget to avoid closures

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Nursing homes seek hike in Medicaid reimbursement rate to avoid closures

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CANANDAIGUA, N.Y. – Nursing homes in the region are struggling to keep beds open because many of them can’t find and/or afford the nurses to staff them.  The facilities are asking the Governor and State lawmakers to increase the Medicaid reimbursement rate to help. 

The M.M. Ewing Continuing Care Center in Canandaigua is one of the few exceptions among nursing homes currently. The facility is fully open with all beds filled, has an above average state rating and hasn’t had to hire traveling nurses in months. However, the center is still facing financial challenges.  “In 2024, we had a million-dollar loss and we’re doing everything right, we give good care, our beds are full and we’re still losing money,” says Matthew Janczak, the VP of Long Term Care at MM Ewing.

Janczak says the reason behind the financial struggle is that Medicaid isn’t covering the full cost of care. “It’s difficult to make ends meet because Medicaid pays 70% of the cost of care. So, every resident that is paid for with Medicaid which is the majority of long-term care patients, we’re losing $100 a day on the care of that resident,” Janczak explains. 

It’s the primary reason over a thousand nursing home beds have been lost in the region since the pandemic. Some facilities have closed, others have entire wings closed because they can’t afford to staff them with nurses.

As News10NBC has been reporting, dozens of local families have had to travel hundreds of miles to find a nursing home spot for their loved one.

Upstate nursing homes are requesting the Governor and state lawmakers increase the Medicaid reimbursement rate in the new budget. They say without a substantial hike, more facilities will be forced to permanently close.

M.M. Ewing has been able to weather the staffing crisis in particular because it’s part of the larger UR Medicine health system and has significant private support. “We find good CNAs that we have here and we put them through, with some donations from the community, we will put them through their schooling so they will become LPNs and we’ll pay for that, we give them a stipend on top of that, it’s a long term process but we’ve had exceptional success with it,” Janczak says.

The approach is working for now but most other facilities can’t afford to make that offer.

The budget process is well underway in Albany, whether there are any adjustments to that Medicaid reimbursement rate for nursing homes, remains to be seen.

To search available nursing homes in the region:

NYS Department of Health

Medicare.gov

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