It’s not just that it’s nice to have revenue. Businesses need it to survive, and the economy needs businesses to survive to make jobs.
Now, imagine someone comes along and chops a big chunk of top line revenue out of your business and tells you it isn’t coming back even though you still provide the service it paid for. And you already have lots of staff hired to provide the service.
That’s the situation nursing homes are in right now, effective October 1.
CMS Cuts for Nursing Home Rehabilitation
In July of this year, the Centers for Medicare & Medicaid Services (CMS) issued reimbursement cuts for post-acute rehabilitation services for nursing homes. As shown in this USNews report, the issue is complex. To simplify, the aim of the cuts was to shift resources from simple to complex cases, which is a good thing, but the form of the cuts do not discriminate between necessary and gold-plated services. As a result, many nursing homes will be significantly hurt, experiencing a sharp drop in projected revenue.
In total, the CMS cuts aim to reduce Medicare payments to nursing homes by $4 billion per year. This can amount to several hundred thousand dollars per year for a typical rehab licensed nursing home. This forces nursing homes to find places to cut expenses, and unfortunately, that is almost certainly going to mean cutting staffing.
Basically, these cuts mean there is a gap between the services patients need and the revenue nursing facilities get to pay for them.
Ozone Laundry Savings Help Bridge the Gap
In these circumstances, every penny a nursing facility can save in expenses can go directly to staffing for needed services. Ozone laundry cannot replace all the revenue a facility will lose to the CMS cuts, but it can make a big difference. Every average-sized facility that installs an ozone laundry system can save around $10,000 per year, perhaps even more, and actually improve laundry outcomes.
The win-win from ozone laundry is guaranteed with the DEL Clean Ozone Laundry Program. With this program, DEL takes the risk out of the change to ozone by becoming a responsible partner with the provider. DEL measures the need, designs and installs the system, trains the staff, and stands behind the performance of the system.
DEL is proud to be a partner to the long term care industry in providing vital services to frail and elderly people.