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Nursing homes keep losing jobs, leading to closures

The American Health Care Association says facilities are limiting new patients due staff shortages.

MINNESOTA, USA — It's no secret that staffing shortages persist in many industries. But they're particularly troubling in nursing homes, which are running out of money, forcing closures.

In Minnesota alone, the equivalent of 45 facilities have been forced to close due to downsizing, according to the Care Providers of Minnesota CEO Patti Cullen. 

The timing is troubling as 71 million aging baby boomers are raising the risk of this long-term care crisis - something Cullen knows all too well.

"I've been in this profession for 37 years," Cullen said. "This has never been this tense, it has never been this desperate."

Cullen's non-profit provides services to thousands of nursing homes and assisted living facilities. Nationwide, the Bureau of Labor Statistics says they are experiencing the worst job loss of any health care sector. 

"It's frustrating because it appears people aren't believing how hard it is right now and the data shows how hard it is," said Cullen. 

The Bureau of Labor Statistics says nursing homes lost at least 210,000 jobs in the pandemic - levels not seen since 1994. And nearly half of nursing home providers said their workforce situation has worsened since May 2022.

This is leading to financial instability for an industry Cullen says is chronically underfunded.

"To get through, they've used federal grants, those are gone. They have used all their cash reserves, those are gone," said Cullen. "Our bank, which is the State, has a lot of extra money, but they don't want to give it to you and that's a hard thing to tell our folks who have worked so hard."

Lawmakers recently introduced a bill asking for a couple hundred million dollars to increase wages, in some cases from $16 to $25.

But those same statistics found that 97% of providers say candidates just aren't interested. 

It's another major obstacle for this major issue that experts predict may not turn around for at least four more years. 

"This is a health care system issue, it's not just a nursing home issue," said Cullen.

There are also so few nursing homes and other continuing-care settings that hospitals are now struggling to discharge patients.

In just one week in December, the Minnesota Hospital Association reported nearly 2,000 patients had to stay extra days because there was no where else to go.

The MHA says that is leading to worse health outcomes and longer emergency room wait times and can impact a hospital's bottom line since it's not often reimbursed for boarding patients like that.

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