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Reductions in long-term care federal funding could hurt community businesses

By Chelsey Ledue

Any loss of federal funding could threaten local economies often dependent on long-term care facilities that serve as core contributors to business communities, according to a national coalition that advocates for community business and the long-term care industry.

CoCares was established to raise awareness that cuts in Medicare or Medicaid funding not only compromise patient care and effective programs for nursing homes but also diminish sustainable jobs and economic vitality in states and communities. Organizers are using the coalition to educate officials about the impact that decisions made in Washington, D.C. will have on their constituents and local economies.

"Staff that work in the long-term care industry make a positive difference every day in the lives of the residents who live in our country's nursing and assisted living facilities – both the staff who care and the residents who made our country what it is today deserve to be recognized and included in the healthcare reform discussions," said Gail E. Rader, founder of Care Perspectives, Inc., a consulting firm in Philipsburg, N.J. that specializes in the education and training of long-term care staff on administrative policy and regulatory matters.

"Long-term care is my business and we provide essential reimbursement and healthcare operational services to providers who need our expertise,” said Tiffany Karlin, CEO of Accurate Business Results, a healthcare consulting firm based in Long Beach, Calif., that specializes in Medicare and Medicaid cost report preparation for skilled nursing facilities. “My team hears the challenges faced by our clients and recognizes the importance that our president and elected officials identify the depth and expanse of their policy decisions. It is their decisions that directly affect the livelihood of not just the long-term care providers, but also businesses like mine who support them."

Nationwide, the long-term care industry provides almost 2 million jobs and employers anticipate filling more vacancies, further stimulating local economies. CoCares emphasizes that preserving and strengthening Medicare and Medicaid is the key to ensuring that patients receive high quality nursing home care or care in assisted living settings. Nursing homes account for approximately 1 percent of the Gross Domestic Product (GDP).

"Many businesses that supply long-term care goods and services that providers and facility residents cannot do without will also face the consequences of massive Medicare funding cuts, " said CoCares member Mark McMullen, a certified geriatric pharmacist for Main Healthcare Pharmacy in Bettendorf, Iowa.

The impact of funding cuts to nursing homes and assisted living affects jobs, services provided by vendors in the community (such as pharmacies and insurance agencies) and the tax base. Long-term care is an important source of jobs and economic vitality in an environment where jobs are hard to come by. Officials say there are more than 100,000 vacancies in long-term care.

The Community Cares Coalition consists of Accurate Business Results, LLC; Afton Care Center; Akron Care Center, Inc.; Arbor Springs; the Arizona Association of Health Plans; the Arizona Healthcare Association; Belle Plaine Nursing & Rehab Center and Bettendorf Healthcare.

 

Photo by *clarity* obtained under Creative Commons license.