Over the past few years, we’ve had many conversations with our clients about the difficulties in finding and retaining direct care staff in long-term care facilities.  With the recent release of the 2016 Ohio Medicaid nursing facility cost report database, we took a look at statewide average purchased nursing expenses over the past 20 years.  After hitting a high of $4.04 per day under the previous cost-based payment system in 2000, purchased nursing steadily declined, hitting a low of just $0.32 per day in 2011.  As the economy improved from its low point following the 2008 crash, purchased nursing usage began to creep back up, increasing to $0.74 in 2015. 

In 2016, however, purchased nursing expenses spiked, with the statewide average rising a recent high of $1.43 per day, an increase of over 400% in only five years.  An average 100-bed facility paid almost $45,000 in 2016 for purchased nursing, compared to only $9,800 in 2011.  Given these trends, how is your facility dealing with the direct care staffing crisis?

In times of uncertainty, understanding your facility’s operations can make all the difference.  HW&Co. can assist you in analyzing your facility’s expenses, hourly rates and staffing hours per day, including comparisons to competitor and peer averages.  Please contact us to discuss how HW&Co. Healthcare Advisors can help you improve your operations.