LTC Bullet: NC Rest Homes
Trap Private Payers
Wednesday July 15, 1998
The Wall Street Journal reported today (7/15/98) that North Carolina
rest homes are losing private pay residents to new assisted living
facilities. The exodus of private payers is particularly troublesome
for homes relying on private payers to subsidize Medicaid patients.
One North Carolina rest home receives $893 a month per Medicaid
resident compared to $2,200 for a private payer in a private room.
Worried North Carolina rest home owners persuaded state lawmakers
to impose a one year moratorium on construction of new assisted
living facilities which has proven less than effective.
The article notes that the number of assisted-living facilities
under construction nationally has grown 60% in the last year.
As assisted living grows in popularity and scope, rest homes dependent
on private payers to offset Medicaid losses will be hard-pressed
to maintain quality if private payers continue to defect.
But if the rest home industry persuades states to stifle competition
and access to care by restricting the assisted living option,
private payers may find themselves trapped in underfunded rest
homes -- just like Medicaid patients.
Read the complete WSJ story, "North Carolina's Ban on Building
Elderly Housing Spurs More Projects," at http://interactive.wsj.com/edition/current/articles/SB900431741889383000.htm