Kudos to the Gazette for publishing articles from the State House News Service on the nursing home bed shortage. But there is so much more to the story, and the Gazette is missing the opportunity for investigative journalism on the local level as this has already hit hard in the Pioneer Valley.
In the past three years, five nursing homes in the Valley have closed, including Highview of Northampton eight months ago. Pioneer Valley Health and Rehabilitation in South Hadley is in receivership. The Elaine Center of Hadley may be next after filing for bankruptcy in July. Who suffers? The patients and staff. Who benefits? The owners, who walk away with pockets stuffed with Medicare and Medicaid cash, paid by taxpayers.
Everyone on the State Viability and Sustainability of Long-term Care Facilities Task Force, a Boston-based, cherry-picked group, knows the reality of how this industry operates. Owners extract value through sale-leaseback deals and layered debt, while the company struggles to provide adequate staffing and services. Financial engineering using tunneling of profits through related party transactions undermines every aspect of quality care.
So, will we run out of nursing home beds by 2029? You bet we will, as nursing homes continue to close. Are they closing because the state reimbursement for Medicaid is not high enough to cover their costs? No, they are closing because nursing homes are the perfect short-term investment opportunity. Buy, extract, walk away.
This is not a secret. A quick Google search will show readers and reporters alike that researchers, academics and state policy makers have known about this for years. Which of our local legislators is willing to step up and take this on, instead of just grandstanding when a facility closes and then disappearing?
Dorkas Fern
Amherst