Our mission is to inform the public of the crisis faced by Nebraska's Nursing Homes and the events that have contributed to the crisis. We also need to discuss possible solutions to overcome the financial challenges that our Nursing Homes are facing. If no action is taken, we risk losing long term care options in parts of our State, which will displace more residents moving them away from their families and communities.

Medicaid Reductions

Most nursing homes provide care to residents who receive Medicaid. Medicaid is a program that helps seniors who meet certain income criteria to receive the care that they need. However, the State of Nebraska does not pay nursing homes a rate that covers the cost of providing care to residents. They continue to reduce payments that are necessary to provide crucial care to one of our most vulnerable populations, the elderly. Over the past two years Medicaid rates have been reduced by -2.65% and -7.17% respectively. That means that in 2016 Medicaid paid nursing homes roughly $34 a day less than the cost to care for an eligible senior. The disparity between the Medicaid payment and the cost of care is projected to continue to grow.

Reduced Census

The average occupancy of Nursing Homes has been dropping in Nebraska, however, as the population of seniors increases in the near future, the need for nursing facility level of care will increase.

Staffing Costs

Nursing homes struggle to find caregivers for their residents, especially in rural areas. Nursing homes often have to utilize staffing agencies to ensure that they have enough staff to care for residents. Staffing agencies cost 50% more than a full-time employee in most cases. With funding reductions it is difficult to hire and retain full-time staff.

Nebraska Conversation Highlights:

“In 2014, Nebraska Medicaid paid homes about $25 less per day than their costs, according to information compiled by the American Health Care Association. By 2017, the gap had increased to about $36 — or 17.6 percent of costs.”

In the last 3 years:

Nebraska Facility Stats

Facilities that closed in the last 3 years
Facilities put into a receivership
$ 0
Per day rate deficit (2016)


The current crisis is having a drastic impact on communities. Join us on December 19th at the Lancaster Event Center to learn more.

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Nursing Home Myths:

Common misconceptions:
While in the past some owners may have done very well, today’s current funding situation is causing many nursing homes to go out of business due to lack of State support.
Changing the methodology for giving nursing homes Medicaid money will not fix the problem, it will only cause more nursing homes to feel like they need to turn away their local community members because they can’t afford more residents on Medicaid and/or cause nursing homes with less resources to be disproportionately penalized.  The State of Nebraska needs to set aside a specific “bucket” of money for nursing homes, which can’t be dipped into by other programs and it needs to increase the amount of money in that bucket in order to save our nursing homes.
Medicaid rates are not keeping up with costs and inflation, which further exacerbates the problem of private pay residents subsidizing the rest of the nursing home with large increases for their daily rate.
For many individuals, the nursing home they live in is the only one for miles around and that community is the one they have lived in for 60, 70+ years.

Who is this impacting?

The current nursing home crisis is impacting many Nebraskans.
Private Pay Residents

Private Pay Residents

Absorbing the cost of medicaid

Nursing Homes are having to charge private pay residents more money to cover the cost of their Medicaid residents.



Have to subsidize the costs

Counties and towns in Nebraska are having to subsidize their Nursing Homes to keep the doors open and to make payroll.



Heavily impacted

With funding being reduced, retaining employees and giving them adequate wages has become increasingly difficult.


The most recent Nursing Home crisis news.

Media Coverage of Medicaid

Read the Omaha.com article on the struggles nursing homes face with the current Medicaid rates:   https://www.omaha.com/livewellnebraska/consumer/nursing-homes-struggle-with-new-medicaid-rates-number-of-facilities/article_747702d9-96a3-50bd-968e-19478c1385ef.html   Looming Crisis in long term care: https://www.msn.com/en-us/money/healthcare/theres-a-looming-long-term-care-crisis-are-you-prepared/ar-BBQafco?ocid=se