Will Nursing Homes Offset Inflation by Cutting Labor?

A new analysis showing rising inflation and labor costs for nursing homes could spark facilities to cut labor to save costs, says a nursing home lawyer Philadelphia PA trusts. A new analysis released on Wednesday by CliftonLarsenAllen and the American Health Care Association (AHCA) found that inflation for nursing home goods and services increased 8.5% between March 2021 and March 2022.  Economists worry that more increases could continue into 2023. A nursing home lawyer Philadelphia PA relies on to fight for victims of nursing home negligence worries that increased labor costs will negatively impact nursing home staffing and resident care.

Inflationary Impact for Goods and Services

According to the American Health Care Association, rising costs put nursing homes at risk. Most nursing homes depend upon fixed rate payments from government programs, such as the Medicare and Medicaid programs. Rising costs in food, energy services, and gasoline may encourage nursing home operators and owners to explore additional cost cutting measures. The report indicated that residents living at facilities at financial risk of closing could triple to 47%.

A Philadelphia nursing home understaffing lawyer at the Wieand Law Firm confirms that hourly wages for RNs, LPNs, and CNAs have increased significantly for nursing homes as well. Due to these rising costs for goods and services, lawyers anticipate that nursing homes may look to reduce staffing, frequently the largest operating expense for a nursing home, as a measure to cut costs. This may put residents at higher risk for neglect and inadequate care.

As nursing homes face economic challenges, nursing home lawyers in Philadelphia PA understand that residents are often the ones who suffer the most. Nursing home operators often choose to reduce services or cut costs rather than lose profit margins. Lawyers speculate that rising inflation could encourage nursing home owners and operators to cut costs by:

  • Reducing staffing
  • Decrease dietary offerings or restrict nutritious food choices
  • Hire less qualified staff to decrease labor rates
  • Limit time spent on training and orientation


Results of Cost Cutting in Nursing Homes

These actions taken to further reduce costs could have direct, negative consequences for nursing home residents. Consequences of expense reductions could increase the risk of:

  • pressure ulcers from infrequent turning and repositioning
  • falls from lack of supervision
  • resident neglect and abuse
  • medication errors from untrained staff
  • malnutrition or dehydration from less nutritious food or lack of staff assistance
  • elopements from lack of staff oversight

Nursing home operators who continue to cut costs to preserve their profits often do so at the expense of quality care. Philadelphia nursing home understaffing lawyers cite that nearly 60% of nursing homes across the US already fail to meet the suggested standard of 4.1 nursing care hours per patient day. Further reductions to staffing – which is already too low in many nursing homes – places residents at an unacceptable risk of harm.

What to Do If Your Loved One Has Been Injured at a Nursing Home

If your loved one has been injured at a Pennsylvania or New Jersey nursing home, contact a nursing home lawyer Philadelphia PA counts on to get results. The lawyers at the Wieand Law Firm staunchly represent nursing home residents and their families that have been injured by nursing home understaffing. Call 215-666-7777 today for a free consultation with an attorney. We will take the time to review your unique case and provide you counsel on your legal options.

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