Seniors Housing Weekly Update - Government Shutdown Means Tighter Future Budgets

October 1, 2013

 
October 1, 2013. 60 Seconds with Steve Monroe. Depending on how long the shutdown plays out, it only heightens the reality that budget cuts will come at some point, impacting all providers who receive federal payments.

Government Shutdown Means Tighter Future Budgets

Are you as sick and tired of hearing about the budget negotiations, or lack of them, and the debt ceiling as I am? As far as I am concerned, the only federal employees who should be furloughed without pay are all the congressmen and their staff. The Dow was up 60 points on the first morning of the shutdown, which should say something, but what this impasse should really be telling us is that just perhaps there will be some movement to slow the out-of-control federal spending that has been going on for so long. We all know it is unsustainable, and we can’t tax ourselves out of the deficit. So, cuts will be coming sooner or later, and for senior care providers and other health care providers who count on Medicaid and Medicare, payments will start to get smaller for the same service. That is why providers will be stepping up their service options and, hopefully, their patient outcomes. That will be how they grow and increase cash flow and value, for them, their shareholders and their customers. Changes will be coming to what skilled nursing facilities do and for whom they do it, but only the best ones will be able to take advantage of this tsunami.

 

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