Closure of Marion Extended Care Facility Shows Growing Pressure on Jobs Resulting From New $275.1 Million Reduction in Ohio Medicare Funding

MARION, Ohio--(BUSINESS WIRE)--

The closure of a Marion, OH extended care facility announced last week is one more indication that a new federal regulation reducing Ohio Medicare funding by $275.1 million in FY 2012 coupled with state Medicaid cuts is contributing to the destabilization of Ohio's skilled nursing facility (SNF) sector, the Alliance for Quality Nursing Home Care warned today. The 11.1 percent Medicare funding reduction went into effect across the nation on October 1, 2011.

The Marion Star reported 10/9 that, “After months of evaluating the significant Medicare and Medicaid reimbursement changes finalized in the State Budget and Federal government mandates, the Morrow County Hospital Board of Trustees has decided to close the hospital's Extended Care Facility (ECF) on December 31, 2011.” An additional six percent reduction from the state for Medicaid reimbursement and 11 percent reduction in Medicare from the federal government made subsidizing the extended care unit “unaffordable.” The facility cares for 27 residents and employs 32 staff members.

Alan G. Rosenbloom, President of the Alliance for Quality Nursing Home Care, said: “We are becoming increasingly worried about the rising level of economic instability occurring in facilities throughout Ohio. Additional Medicare cuts proposed in September by the Administration -- on top of the new Medicare regulation that went into effect October 1st, and on top of Ohio state Medicaid cuts -- will significantly contribute to further destabilizing the state's second largest health facility employer. This hurts Ohio seniors and undermines jobs stability in communities across Ohio.”

The Alliance for Quality Nursing Home Care recently launched a new website to both detail the significant jobs and economic activity associated with Ohio's skilled nursing facilities, and to comment when warranted on layoffs, job losses and other staffing matters as warranted by media reports and other local information sources.

An Avalere Health analysis associated with the website details the annual economic and jobs output of skilled nursing facilities (SNFs) in the nation's 50 most populous Metropolitan Statistical Areas (MSAs) and finds Ohio currently has three in the top 50: Cleveland/Elyria/Mentor at #12, Cincinnati/Middletown at #13, and Columbus at #24. Total impact of SNFs on local job creation is 31,588 in Cleveland metro; 25,452 for Cincinnati metro; and 17,626 for Columbus metro.