Implementing minimum staffing mandates in U.S. nursing homes did not lead to financial strain or facility closure, according to a study published March 3 in Health Affairs.
Researchers from Philadelphia-based University of Pennsylvania analyzed data from 6,849 nursing homes across 22 states collected between 2010 and 2023, a March 2 health system news release said.
CMS repealed a minimum staffing rule for long-term care facilities in December that would have required a registered nurse on site 24/7, citing recent federal court rulings and concerns over implementation.
In February, CMS republished a Notice of Funding Opportunity to support financial incentives, such as loan repayment and stipends, to registered nurses and licensed practical nurses who work for three years in an eligible nursing home or state oversight agency.
Here are three notes from the study:
- Staffing mandates implemented during the study period increased total direct care staff by about 5% on average. The increase was driven by hours worked by licensed practical nurses and certified nursing assistants.
- Annual labor expenses rose by about $273,000 because of the staffing increase, but they were offset by an increase of about $546,000 in net patient revenues.
- “The financial doom that the industry predicted just didn’t materialize,” Rachel Werner, MD, PhD, executive director of the Leonard Davis Institute of Health Economics and lead study author, said in the release. “The data show that these mandates don’t harm nursing homes, and they do help residents.”
Read the full study here.
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