ISSUE BRIEF: NURSING HOME LOSSES

Nursing homes are in financial difficulty due to the loss of funding over nearly a decade, the pandemic and the resulting loss of census. Not only do RI nursing homes not have excessive profits, in total they lost money in 2017 and 2018. The truth is RI nursing homes lost $7.9 million in that time period.

The union tries to justify passage of a 4.1 staffing hours mandate by claiming excessive profits in the nursing homes; specifically, that owners made $241 million in 2017 & 2018. This is plainly untrue.

Rhode Island Nursing Homes Summarized Data per 2017 & 2018 Medicaid BM-64 Cost Reports, as Filed with the RI Office of Health and Human Services (82 Nursing Homes)

Total Revenues as Reported in the Medicaid Cost Report

$ 1,615,995,902

Total Expenses as Reported in the Medicaid Cost Report

(1,623,987,079)

Total Expenses in Excess of Revenues as Reported

 $ (7,991,177)

Disclaimer: the 2017 and 2018 information illustrated above has been summarized by blumshapiro from the data included in the 2017 and 2018 Medicaid cost reports, as filed with the State of Rhode Island, Office of Health and Human Services. This information was obtained through a freedom of information request. blumshapiro has not certified or verified the accuracy of the data included in the 2017 and 2018 cost reports or the data illustrated above.

To get to the true profit/loss for the nursing homes, one must subtract all expenses from the revenues. Yet, the SEIU included ONLY Medicaid expenses in their calculation.

This means they left out millions in therapy, pharmacy, provider tax, maintenance and cleaning costs and Medicare expenses. These expenses are paid for by the nursing homes and to exclude them is simply cooking the books.