Can the seniors housing sector expect to receive federal funds during the pandemic without some strings attached, like regulations?
As the health care industry tries to deal with the rising costs of the coronavirus pandemic, the funds available may get tighter and tighter. So far, it has been hospitals and nursing facilities that have received much-needed federal aid. Nursing facilities have been given direct daily rate increases to deal with the rising costs of PPE and labor. The private-pay seniors housing sector, however, has been left out, so far.
It has not been without a major effort to obtain federal funds to help with the sector’s own rising costs. Testing kits for all staff and residents is a no-brainer, and should come from either the states or the federal government, free of charge and no strings attached. It gets a little dicey when you start talking about actual money to cover additional costs and higher wage rates to keep and attract staff during the crisis.
All I can say is, buyer beware. Once the federal government starts handing out cash to cover costs at privately-owned, and private pay, businesses that do not accept Medicaid or Medicare payments, well, the Feds are going to want to have their say. Instead of getting out of the way, there is a higher likelihood that their quid pro quo will be more regulations and other unwelcome changes.
You might say no way, we are in a national crisis. But it is a crisis they will not let go to waste. Just look at the details of the recently passed House bill asking for an additional $3 trillion in government payouts. And by the way, I didn’t see seniors housing in it. While we may need the money, for our sector to expect that more government involvement will not come with the cash borders on being naïve. Especially if a new administration comes to town.
