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Report: More than 400 nursing homes could close in 2022

Written on Apr 25, 2022

More than 300 nursing homes have closed during the COVID-19 pandemic and another 400 could go out of business this year, according to a new report from the American Health Care Association.  

The analysis documented more than 1,000 nursing home closures since 2015 — with 776 happening before the pandemic and 327 during the crisis. 

The facilities that closed tended to be smaller, with fewer than 100 beds, and in urban settings where residents rely on Medicaid.  

“With hundreds of nursing home closures looming now and thousands more anticipated if government funding is cut, state and federal policymakers need to step up to support our social safety net,” Mark Parkinson, AHCA’s president and CEO, said in a statement. 

The findings follow the Centers for Medicare & Medicaid Services’ announcement that it plans to decrease pay for skilled nursing facilities by $320 million in fiscal 2023.  

The association also included data from a March CliftonLarsonAllen analysis that focuses anticipated margin and occupancy levels, as well as facilities at financial risk if Medicare has a 5% parity adjustment and Medicaid public health emergency funding goes away. CLA estimates between 33% and 38% of nursing homes would be at financial risk if Medicare is cut by 5%, as recommended by MedPAC, and Medicaid PHE funding ends in 2022.