Who Will Pay for Increased Nursing Home Testing?


by James A. Bacon

The The Virginia Mercury has published a well-reported article today about the challenges of addressing the spread of COVID-19 in Virginia nursing homes, which account for 57% of all COVID deaths in the state.

The Virginia Department of Health is gearing up for a massive expansion of testing at the nursing homes. Drawing upon funding through the Virginia National Guard, VDH has already begun performing broad baseline testing, which it refers to a “point prevalence” surveys.” Of the state’s 287 nursing facilities, only 42 have been tested. Some facilities have been conducting their own testing at their own expense. However, some facilities have resisted baseline testing, presumably on the grounds that tests would reveal the presence of asymptomatic employees, thus exacerbating staffing problems.

Now, following the issuance of federal Centers for Medicare & Medicaid Services (CMS) guidelines, VDH expects to begin implementing recommendations as soon as it can “work through the guidance an turn it into something more useable,” in the words of Sarah Lineberger, director of the agency’s health care-associated infections program.

VDH likely will ask every facility to conduct a baseline test of all residents and staff members, then test staff on a weekly basis thereafter. It is widely assumed that asymptomatic staff are primarily responsible for bringing the virus into nursing homes. The big question, as always, is who pays?

At $100 to 175 per test, The cost of tests for 30,000 nursing home residents and 30,000 employees would run between $6 million and $10.5 million. And that doesn’t include the significant cost in staff time and personal protective equipment (PPE) to administer the tests. It is not known how long the funding will last for the National Guard to continue testing. Medicare reimburses up to $100 per test for patients, but nothing for staff.

Numerous nursing homes have reported difficulty in acquiring PPE for staff, although the number reported on the Virginia Hospital and Healthcare website has declined in recent days. Only seven facilities reported difficult obtaining N95 masks and nine acquiring isolation gowns.

Secretary of Finance Aubrey Layne says that the price tag attached to expanded testing has become the main sticking point for VDH. The Virginia Department of Medical Assistance Services, which administers the Medicaid program, upped its reimbursements by $20 per patient per day in April. The money was freed up by the ban on elective procedures. That savings will continue to go to nursing homes through June, but he’s not sure if the state can maintain the funding after that.

Another challenge is that nursing homes haven’t been able to get money from federal or state assistance. Virginia’s hospitals have received $170 million in federal helicopter dollars, but the nursing homes nothing. States are forbidden from directing coronavirus relief dollars to replace lost revenues. Also, Layne says, some people have expressed concerns with sending more money to facilities owned by for-profit companies with poor records of care.


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4 responses to “Who Will Pay for Increased Nursing Home Testing?”

  1. Steve Haner Avatar
    Steve Haner

    “However, some facilities have resisted baseline testing, presumably on the grounds that tests would reveal the presence of asymptomatic employees, thus exacerbating staffing problems.” Wow. They’d rather let those potential asymptomatic employees continue the spread? Why do I feel lawyers are having more sway over all this than doctors?

    Your question, of course, is rhetorical. We pay. Taxes, federal debt or premiums or some combination of the three will pay – we can hope it is the real cost and not the inflated fake healthcare pricing numbers, you know, that list price on bills that only suckers pay.

  2. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    Layne said earlier that the first priority for the CARES funding received by the state would be testing and contact tracing. It seems nursing homes would be a good place to start spending that money. He does have a point about sending money to for-profit facilities that have poor records of care. However, public health takes precedence. Instead of sending money to those facilities for testing, perhaps the state could send in local health department teams to conduct the testing.

  3. LarrytheG Avatar
    LarrytheG

    re: ” presumably” , eh… more likely the cost of the testing..

    this sort of highlights the issue for a lot of businesses and institutions.

    Who will pay for a mom & pop restaurant to test it’s workers and who will pay especially when their restaurant revenues are cut in half ?

    Big companies like Walmart and Home Depot will find a cost-effective way , one PRESUMES…

    In Fredericksburg, we have had LIDL, Giant, Aldi, Chick-fil-a, and other businesses having to close when COVI19 was discovered among some of their employees. One wonders how each business found out that one or more of their employees was infected. Were they testing all of their employees or did some get sick and then got tested for “free” somewhere?

    We even had the health dept itself get infected… that’s a bit ironic…

    The focus in on the nursing homes but it’s also on businesses trying to open… who will pay for testing of employees for for-profit businesses?

    one guess! Some might even put it on their receipts – sort of telling their customers the employees are tested and guess who is paying?

  4. What’s the cost for 10-14 days hospital care for a COVID-19 patient? $100-175 Test vs. avoidable multiple cases x $ thousands?

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