The head of the industry’s largest trade group blasted federal payment levels after the government released new healthcare spending data, showing little growth for the sector.
Spending growth on skilled nursing facilities and continuing care retirement communities increased by just 2% in 2017, up to $166.3 billion. That’s compared to slightly larger increases of 3.1% in 2016, and 3.8% the year prior, the Centers for Medicare & Medicaid Services Office of the Actuary announced.
Mark Parkinson, president and CEO of the American Health Care Association, said the small numbers reflect the hours SNFs are putting in to control costs.
“Once again the data indicates that nursing home costs are increasing at a lower rate than overall health care costs. That is because nursing home operators are working hard every day to provide quality care at an affordable price,” he told McKnight’s Friday.
“But, it also reflects rampant Medicaid underfunding, which is creating havoc for the sector,” he added. “It’s time for the country to step up and pay for the care that seniors and individuals with disabilities need and deserve.”
The report noted that growth in the use and intensity of healthcare goods slowed in 2017, including for care at skilled nursing facilities and CCRCs. Out-of-pocket spending for healthcare — which includes copayments, deductibles and other payments made by individuals — slowed last year growing by 2.6%, which authors attributed to slower growth in spending on SNFs and CCRCs, as well as physician and dental services.
Spending on Medicare Advantage jumped by about 10% in 2017, compared to 1.4% for traditional fee-for-service payment. And spending growth for Medicaid skilled nursing’s biggest payer, ticked up by just 2.9%.
Overall, healthcare spending increased by about 3.9% last year, up to $3.5 trillion. That’s slower than the growth of 4.8% in 2016.
