The Congressional “supercommittee” made up of Democrats and Republicans has been unable to come up with a budget savings solution of $1.5 trillion over the span of ten years. If no agreement is reached this week, $1.2 trillion in spending cuts will be automatically enacted on hundreds of programs, beginning in 2013. A few programs have been exempted from the automatic cuts, such as Social Security, the Medicaid health program for the poor, Medicare health benefits for the elderly, veterans’ pensions and many programs for people with low income.
These unexpected budget cuts result in an unpredictable savings plan for both nursing homes and assisted living facilities. Even though Medicaid will be exempt from the automatic cuts if an agreement is not reached, Medicare will experience a 2% cut in payments to nursing homes and other health care providers. Although 2% does not seem like very much, this will cost each nursing home an average of $50,000, which is the equivalent of two direct-care workers. Since the automatic cuts won’t be enforced until 2013, lawmakers still have the ability to pass legislation decreasing the reductions in 2012, so this is a worst-case scenario, but the cuts remain a possibility if Congress cannot devise an alternative solution.
More than a catchy marketing gimmick, in recent years “going green” has become the thing to do, so it’s no surprise that even the senior housing sector is moving towards green living, since its benefits extend to the environment, residents, and operators.
Green facilities consume less water and energy, use solar power, improve air quality and utilize recyclable material. This is accomplished through building designs that allow more natural light to enter, installing solar panels, using low-flow toilets/shower heads, recycling programs, and various other “green” techniques. Owners can also count on future savings since their facilities will be using less energy. In addition, once complete, facilities can receive Leadership in Energy and Environmental Design (LEED) Certification, legitimizing their eco-friendliness and making them that much more appealing to the new generation of seniors.
Owners and operators may need some help to fund their green-living turnaround, since it may be more costly then conventional construction/rehabilitation. And that’s where Cambridge comes in; we can help you find the right financing solution to help you and your facility save some green – cash – in the long run!
Did you miss out on senior housing news while you were busy at the ALFA conference this week? Or are you just looking for a good overview? Here’s what’s made headlines this week:
County-operated nursing homes in New York state are struggling financially, due to the increasing population of senior citizens, the growth of the state’s Medicaid program, and the growth of property taxes.
These unexpected budget cuts result in an unpredictable savings plan for both nursing homes and assisted living facilities. Even though Medicaid will be exempt from the automatic cuts if an agreement is not reached, Medicare will experience a 2% cut in payments to nursing homes and other health care providers. Although 2% does not seem like very much, this will cost each nursing home an average of $50,000, which is the equivalent of two direct-care workers. Since the automatic cuts won’t be enforced until 2013, lawmakers still have the ability to pass legislation decreasing the reductions in 2012, so this is a worst-case scenario, but the cuts remain a possibility if Congress cannot devise an alternative solution.
