Yes, it’s that time in Washington again. Time for the annual budget cutting and trimming that almost always includes senior living providers, investors and important community programs serving seniors. A new post from Senior Housing News affirms that 2013 is a year like any other, the headline posing what seems to become the inevitable question: Will Sequester Cuts Crush Senior Care Providers & Investors?
What kind of financial impact for the near- and long-term future should providers expect? What will the effect of the potential cuts be? The article shares some insights:
“Barring Congressional action, skilled nursing and rehabilitation providers are in for a 2% sequestration-induced payment cut next month, on top of the average 11.1% reduction announced in the fourth quarter of 2011.” It’s not just skilled nursing and rehab providers who will suffer as a result of the cuts. According to Mark Ohlendorf, the CEO of major provider Brookdale Senior Living, “Sequestration will affect ‘both skilled nursing rates in the senior housing portfolio and home health and outpatient therapy rates in the ancillary services segment.’ ”
And who is already struggling to recover from Medicare rate reductions in years past? Senior Housing News points to another major senior living provider, Five Star Quality Care, who “was adversely impacted by about $17 million in 2012.”
Learn more about the financial challenges faced by senior living providers now — and in the future — here.