(Alexandria, Va.) – Despite caring for the population most vulnerable to COVID-19, many assisted living providers are still waiting for financial relief, according to a new survey conducted by Argentum. To date, assisted living providers are expected to receive about $3 billion from the CARES Act Provider Relief Fund while other providers, including hospitals and nursing homes, are slated to receive $145 billion. It is estimated that the senior living industry will see an overall impact of $15-$20 billion resulting from increased expenses and lost revenue.
“We appreciate the work HHS has done to approve assisted living providers and process relief payments. However, as financial resources continue to dwindle, these providers are having to make extremely difficult decisions,” said James Balda, president and CEO of Argentum. “We are asking that HHS process these payments as quickly as possible and to strongly consider offering additional financial relief to ensure communities can continue to operate and offer necessary care and services to millions of older adults and their dedicated employees.”
In a recent survey, Argentum members representing more than 1,000 communities across all levels of care noted the significant financial burden and related challenges brought on by COVID-19:
- 37% said they foresee the possible closure of some communities if their financial situation does not improve
- 85% said they are experiencing resident census decreases of up to 30%. Another 10% of senior living providers are experiencing up to 50% decreases in census.
- Nearly 1/2 said their expenses have increased 11-30%; over 1/4 said their expenses have increased 31-50%
- Nearly 90% said they applied for Provider Relief Funds and over 80% have been approved for funding. However, nearly 1/2 have not yet received relief funding payments
- Almost 1 in 3 said Provider Relief Fund payments they have received will cover only 1 month or less of lost revenue/increased expenses
- More than 1/2 said they are paying for staff COVID-19 testing
- Nearly 1/2 said their state(s) require COVID-19 testing, but states offer no financial resources to providers
- 1/2 said they have encountered obstacles in getting tests for residents or staff paid for due to several factors, such as health insurance plans denying coverage (41%) or labs refusing to bill Medicare directly (51%)
One respondent said: “We haven’t received the [relief] funds yet, but when they arrive, (fingers crossed), it will be an absolute game-changer for us. We could not continue through this winter without it. Our concern now is that we’re entering a period of two years of pandemic suppression. We’re going to need more support.”
To date, only 1.7% of the total Provider Relief Funds available have been allocated to assisted living communities, while hospitals and nursing homes are allocated to receive 83%. Argentum urges HHS to consider offering a portion of the remaining Provider Relief Funds to these communities to continue to offset expenses, lost revenue, and future costs related to testing and vaccine administration.
About Argentum
Argentum is the leading national association exclusively dedicated to supporting companies operating professionally managed, resident-centered senior living communities and the older adults and families they serve. Since 1990, Argentum has advocated for choice, independence, dignity, and quality of life for all older adults.
Argentum member companies operate senior living communities offering assisted living, independent living, continuing care, and memory care services. Along with its state partners, Argentum’s membership represents approximately 75 percent of the senior living industry—an industry with a national economic impact of nearly a quarter of a trillion dollars and responsible for providing over 1.6 million jobs. These numbers will continue to grow as the U.S. population ages.
Argentum’s programs and initiatives are driven by its membership. For more information about joining Argentum, please visit argentum.org/membership. Learn more at argentum.org.
