Minnesota’s Seniors Public Policy Issues April 9, 2013 Crisis in Long Term Care.
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Transcript of Minnesota’s Seniors Public Policy Issues April 9, 2013 Crisis in Long Term Care.
Minnesota’s Seniors Public Policy Issues
April 9, 2013
Crisis in Long Term Care
2012 Percent of Nursing Facilities at Risk of Closure(Operating Margins of -5% or Worse)
Legend=<25%
=25%-35%=35%-45%=>45%
East Central 22.6%
Metro 22.4%
Northeast 30.0%Northwest 47.1%
Southeast 35.8%
Southwest 36.1%
West Central 42.1%
Approximately 115 Nursing Facilities in MN are Facing a
Financial Crisis, Placing almost 15,000 Jobs at Risk
LTC Imperative 2012 Nursing Facility Financial Survey Prepared by CliftonLarsonAllen LLP
The Wage Gap
Sources: 2011 LTC Imperative Salary Survey and 2011 MN Health Care Cost Information Service Hospital Salary Data
$11.69
$18.49
$26.19
$17.82
$20.30
$41.96
$12.03
$18.23
$24.57
$- $5 $10 $15 $20 $25 $30 $35 $40 $45
NAR
LPN
RN
Care Center Hospital Home Care
Gap=$2.07 per hour or $4,306 per year
Gap=$5.79 per hour or $12,043 per year
Gap=$17.39 per hour or $36,171 per year
Gap=$15.77 per hour or $32,802 per year
Gap=$1.81 per hour or $3,765 per year
Gap=$6.13 per hour or $12,750 per year
Senior Living Workers Underpaid in the Marketplace
Direct Care Staff Shortages Increasing for Nursing Homes
Total Vacant Direct Care Positions Currently Exceed 1,600
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
R.N. L.P.N. N.A.R. Total
2007 2008 2009 2010 2011 2012
Source: Long Term Care Imperative 2013 Legislative Survey
Rate Changes
Assisted Living (Elderly Waiver Customized Living)
Nursing Facility
Source: LTC Imperative 2012
Nursing Facility and Elderly Waiver/Customized Living
• No base increase in last four years• In 2011, 70 low rate homes received increases of up to 2.45%• In 2012, 7 homes were designated “critical access” and received rate increases
Care Center Rates Do Not Cover Costs
Source: Data from Report Prepared By Eljay, llc for the American Health Care Association
MN has 9th Highest Gap of 37 States in 2010
Statewide Monthly Average EW Rate More Than 40% Less Than Average Cost of Providing Services
Source: Long Term Care Imperative 2013 Legislative Survey
$2,681
$1,884
$(797)$(1,000)
$(500)
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Average Cost Average Rate Average Difference