Editorial: Nursing homes in a crisis

Friday, June 9, 2000 | 9:21 a.m.

Nevada is on the verge of a nursing home crisis. As the Sun's Cy Ryan reported earlier this week, Integrated Health Services told a state legislative panel that a number of its nursing homes in Nevada could be "downsized" within the next six months, which could result in 800 elderly Nevadans being evicted. That's not all. To gain a perspective on the financial plight facing this industry in Nevada, the Associated Press notes that 22 of 47 nursing homes are in bankruptcy proceedings -- 15 of the 22 are owned by Integrated Health Services.

The reasons for the nursing homes' difficulties depend on your perspective. Nursing home officials contend that low government payments for Medicaid patients and bureaucratic red tape have contributed significantly to their financial woes. Others, though, note that some of the corporations that run these nursing homes have not been managed well, which not only lead to poor care for their patients, but also result in their financial instability. As is the case often with complex public policy questions, there probably is a shred of truth in each perspective.

Obviously not all nursing homes are on the verge of bankruptcy, and some are doing well. However, in recent years nursing homes and a number of other types of health care providers have asserted that stingy government payments have crippled them financially. Insurers that provide coverage for Medicare recipients have pulled out of some markets, citing insufficient government reimbursement. Meanwhile, providers that offer home health care services have noted that payment reductions have hampered their ability to provide care for individuals, especially those with debilitating problems. So there is a valid concern that government needs to reassess its payment policies.

Charlotte Crawford, the director of the state Human Resources Department, says she will meet with with nursing home operators and see what state government can do to address their concerns. While Nevada shouldn't be doling out state money that is undeserving, it is incumbent on state regulators to see if there is some flexibility -- and additional funding -- that they can grant to nursing home operators. It's also imperative that Gov. Kenny Guinn himself take a more active role, working to see if he can forge a compromise that has so far eluded nursing home operators and government. If Nevada's elderly are evicted from their nursing homes with no place to go, there is no amount of whitewash that could hide what a disgrace this would be for the state.