Please note: This template was updated on May 2, 2024 to reflect impacts of the recently released federal staffing mandate. If you’ve previously sent a letter this budget season, you may send a second letter now using this refreshed template.
Governor Shapiro delivered his budget address on February 6, 2024. While his proposal would increase the state budget by approximately $3 billion, there is no proposed increase to skilled nursing Medicaid reimbursement rates. The Fiscal Year (FY) 2023-24 state budget did include some funding to support the year two staffing requirements planned for July 1, 2024 ($15.8 million to be annualized to $31.6 million plus federal match), but providers are still not receiving sufficient funds to overcome staffing challenges or meet other increased costs, putting access to care for older Pennsylvanians at risk. With the recently released federal mandate now looming, it is even more critical that providers receive the funds they need now to begin building a solid workforce.
A November 2023 analysis conducted by financial consultant RKL LLP demonstrated that nursing homes still need an additional $40 million (in state funding) to help work toward meeting year-two staffing requirements in Pennsylvania. Related to those increased staffing mandates, we’re seeing the number of available nursing beds in our state drop at an alarming rate. And as the federal mandate is set to be implemented, PA serves as a cautionary tale through which we've seen the direct results of increased costs due to inflation, exorbitant temporary staffing agency fees, and inability to compete with high sign-on bonuses from hospitals and increased wages in other industries: more and more beds continue to come offline, exacerbating an existing access to care crisis and increasing strain on hospitals and other sectors of the healthcare continuum.
Given the number of older adults who will need care at this level in the coming years, and the report findings shared by RKL, LeadingAge PA is advocating for a $70 million investment in the FY 2024-25 state budget proposal to increase nursing facility reimbursement rates ($40 million toward year-two staffing requirements and $30 million to help cover additional costs and inflation).
With the June 30 budget deadline quickly approaching, both House and Senate appropriation committees are currently discussing the issues the state faces and how to fund them. Your state legislators need to hear from you. Because they are bombarded with many issues from competing groups, it is critical that they hear from as many nursing home providers and advocates as possible. Tell them what will happen if you don’t receive increased reimbursement to help cover increased costs. Tell them how many hospital discharges and potential admissions you have to turn away because you can’t find the staff to keep all of your beds open. Tell them what keeps you up at night as you fight to keep the lights on and provide quality, mission-driven care to the residents you serve.
To maximize the impact of our advocacy efforts, we encourage you to edit the template email provided by sharing your own personal stories and experience as to why this funding increase is needed.