KIRO NEWSRADIO

System fails Washington nursing homes as minimum wage rises

Jul 19, 2019, 1:43 PM | Updated: Oct 1, 2024, 11:47 am

nursing homes minimum wage...

Problems with Washington state nursing homes continue. (Pexels)

(Pexels)

Typically, businesses and organizations speaking out against a higher minimum wage is simply due to increased costs. But when it comes to Washington’s nursing homes, that conversation is far more nuanced.

Conditions in Washington nursing homes rank among worst in nation

The problem boiled down to its simplest form is that a rising minimum wage for employees in Washington nursing homes is forcing many to shut down amid rising costs. Roughly 70 percent of costs to state facilities are taken up by labor.

That said, it’s far more complicated than just that.

Essentially, facilities are reimbursed by the government for Medicaid patients, who make up as much as 65 percent of nursing homes. The exact amount designated for reimbursement is tied directly to minimum wage, with a slight — and damaging — wrinkle.

“The state’s currently reimbursing on the 2016 cost, when minimum wage was $9.47,” Washington Health Care Association CEO Robin Dale told KIRO Radio’s Candy, Mike and Todd Show. “Well, January 1 of 2020, minimum wage is going to go up to $13.50, but the state’s still pretending that cost has not increased, and essentially pretending that minimum wage is still $9.47 an hour.”

That means less money for Washington’s nursing homes, despite rising costs.

According to Dale, 18 facilities in the last two and a half years have either closed or announced closures. That’s a number he labels as “unprecedented.”

“There have been closures in the past. But what’s different about this time is that this is the first time we’re having closures that are based upon inadequate Medicaid reimbursement rates,” he described.

And while simply lowering minimum wage is one potential fix, Dale and others would rather see nursing homes receive proper funding to pay employees what they deserve.

“We need to be able to pay them what we should and we’re not able to do that under the current system,” Dale said. “If you are telling us that these are the people we want you to take care of, pay the cost of care — that’s all.”

Washington state takes steps to stem epidemic of elder abuse

Dale estimates that combined between federal and state money, nursing homes would need upwards of $70 million to cover the spread. The number they asked for during the latest legislative session, though, was even lower, at just $20 million.

In the end, that money never came.

“Now we’ve got facilities shutting down,” Dale said.

Please follow our Community Guidelines

lonely men washington...

Charlie Harger

Harger: Washington men are never alone on their phones. 60% say they’re lonely anyway

A new survey says 60% of Washington men feel lonely on a regular basis. That's the guy who fixes your furnace. The one three cubicles over who's always the last to leave. Your brother. Maybe you.

56 seconds ago

bite of seattle court suspect...

Brooke Griffin, KIRO 7 News

Bite of Seattle suspect set to appear in court

The 15-year-old Bite of Seattle shooting suspect is expected to be back in court on Thursday morning.

47 minutes ago

Former Philippine President Rodrigo Duterte appears before the International Criminal Court in The ...

Associated Press

International Criminal Court judges say Philippine ex-President Rodrigo Duterte fit to stand trial

THE HAGUE, Netherlands (AP) — Judges at the International Criminal Court have ruled that former Philippine President Rodrigo Duterte is fit to stand trial on charges of crimes against humanity linked to the so-called war on drugs he waged while in office, the court announced Thursday. Duterte, 81, denies the charges. His trial is scheduled […]

52 minutes ago

costco email lawsuit washington...

MyNorthwest Staff

Costco to pay Washington shoppers $14M to settle email lawsuit

Costco is paying Washington shoppers more than $14 million to settle a lawsuit over allegedly misleading marketing emails.

56 minutes ago

october rain weekend...

Chief Meteorologist Morgan Palmer, KIRO 7 News

October reality check on the way with weekend rain and chill

This pattern of morning gloom and afternoon sunshine won’t last. And we have just one more day with balmy highs in the mid-60s and 70s before changes sweep in.

1 hour ago

IPEX PVC pipe cleared from the riverbank is dumped at MountainTrue headquarters Wednesday, July 22,...

Associated Press

PVC pipes swept away by Hurricane Helene flooding still dominate cleanup of North Carolina river

WOODFIN, N.C. (AP) — They’re piled on river banks, lodged in uprooted trees, embedded in sediment and jammed under logs. Many are tangled in mounds of debris up to two stories high. Two years after Hurricane Helene leveled forests, bulldozed houses and filled western North Carolina rivers with everything from cars to refrigerators, the work […]

1 hour ago

System fails Washington nursing homes as minimum wage rises