AUG. 25, 2000

Medi-Minutes
Congress Tackles Nursing Home Worker Shortage

A recent report by the Health Care Financing Administration that worker shortages are leading to poor-quality care in American nursing homes, is prompting some members of Congress to act.

Senator Grassley (R-IA), chair of the Senate Aging Committee, has suggested restoring 1997 Medicare cuts, thereby enabling nursing facilities to increase staffing levels. Also, he may urge states to increase nursing homes’ Medicaid rates, which account for 65% of the industry’s revenue.

In the House, Representative Waxman (D-CA) has introduced a bill (the Nursing Home Quality of Care Improvement Act (HR 4949)) that would punish nursing homes that violate federal health and safety standards, but it would also increase Medicare payments to nursing homes. Penalties would range from $2,000 for violations that could potentially harm residents to $25,000 for violations that place residents in immediate jeopardy. The proceeds from the penalties would be pooled and used to help facilities increase staff and to make other reforms. The bill would also reinstate the Boren Amendment, which required states to provide "reasonable and adequate pay" to nursing homes.