I attended a networking breakfast that was organized for professionals involved in different areas of the senior industry. I was asked by the leader to share the greatest challenge that I was currently experiencing with my business. I didn’t have to think too long to respond.
Over the past year or so, I have witnessed my nursing homes engage in the process of converting entire floors to short-term rehabilitation units. Short-term rehabilitation costs are covered by Medicare. Without going into great detail, Medicare covers the first 100 days of short-term rehabilitation after a three night qualifying stay in the hospital. It doesn’t cover long-term custodial care, which many people don’t understand. Short-term rehab is where nursing homes are currently making their money. The tendency is to admit the senior and rehabilitate him or her until a plateau on the therapy is reached. The senior is then discharged and it’s on to the next person.
So what is the impact of facilities converting entire floors to short-term rehab? Many of the nursing homes making this change are not currently accepting any long-term residents. The long-term residents who currently live in the community are slowly being transitioned from their current floors and moved to another floor. So now there is a shortage of long-term beds at selected communities. The certification change to short-term beds results in not only a smaller number of long-term beds, but fewer beds that are certified for Medicaid (public aid).