January 04, 2018
Contact: Eric Kiehl, 717-221-7935
Cell: 717-599-2077

PHCA Response to Workers’ Compensation Loss Rate Increase

HARRISBURG — W. Russell McDaid, President and CEO of the Pennsylvania Health Care Association, issued the following statement

“The approved loss costs change of +6.06 percent, to be effective on a new and renewal basis as of February 1, 2018, is an unprecedented action that will lead to significant cost increases for Pennsylvania’s skilled nursing facilities, assisted living residences and personal care homes.

“Pennsylvania skilled nursing facilities are already facing a tremendous funding shortfall in Pennsylvania’s Medicaid program, which pays for the care for 68.96 percent of all nursing facility residents.

“In Pennsylvania, based on current Medicaid reimbursement levels, skilled nursing facilities are paid $27.25[i] per day less than their actual costs of providing care. That’s a funding shortfall of almost $10,000 annually, on average, for every Medicaid resident in their care.

“Skilled nursing facilities continue to be asked to do more with less. These facilities, which care for our most vulnerable populations, cannot invest in necessary capital improvements or advanced technology that would enhance care, nor can they pay competitive wages that would increase staff retention, which is so vital to high-quality care.”

[i] 2016 Shortfall Report – Preliminary Results, Eljay, LLC and Hansen Hunter & Company P.C. (AHCA commissioned by American Health Care Association), https://www.ahcancal.org/research_data/funding/Pages/Medicaid-Shortfall-Report.aspx

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