Alyssa Gerace, Senior Housing News, December 18, 2011

According to a study by Avalere Health found that the 11.1 percent Medicare funding cut to nursing homes that went into effect on October 1 will ultimately reduce funding by $79 billion over the next 10 years. Alliance for Quality Nursing Home president Alan Rosenbloom says that if the cuts were phased in over a 3 year period, the impact would not be as drastic. “A gradual phase-in of the federal regulation—which has been done in the past for other provider sectors—can help alleviate a worsening direct care staff layoff crisis that is now a documented fact in Ohio,” said Rosenbloom in a statement. “We respectfully urge Congress to pursue a phase-in of the regulation, and we would be pleased to work with lawmakers to help achieve this logical, fair and responsible policy recourse before Congress adjourns for the year.” An Avalere Health survey also found that nursing homes across the nation plan to lay off a total of approximately 20,000 workers as a result of the cuts.