Michigan operators facing financial challenges caused by the COVID-19 pandemic will get some additional relief after the governor signed a new budget committing $100 million to nursing homes still struggling to recover occupancy.
Michigan Gov. Gretchen Whitmer (D) signed the $385 million supplemental budget bill on Monday, with two-thirds of the funding going to hospitals and nursing homes.
Long-term care facilities will split $100 million of the supplemental funding, which will provide a $23 per day Medicaid increase to facilities that experienced a 5% or greater decline in average daily census during the pandemic. Facilities’ average occupancy rates will be compared to their 2019 Medicaid cost report to determine the change in average daily census.
Hospitals will also receive $160 million in supplemental funding, while $106 million will go to provide a 40% rate increase to child development and care program providers.
“This vital assistance will help our hospitals, nursing facilities and child development and care programs continue to cope with the COVID-19 pandemic and its resulting financial repercussions,” Republican state Rep. Mary Whiteford said in a statement.
The impact COVID-19 has had on nursing home occupancy nationwide has been well-reported by industry stakeholders.
A June American Health Care Association survey found that 84% of respondents reported they’re losing revenue due to fewer post-acute patients coming from hospitals; 83% cited financial losses due to fewer residents seeking long-term care; and 37% said their losses are attributed to residents/patients moving out.
The industry reported a record low occupancy of 70.7% in January, but the figure has slowly started to rebound in recent months.