Jan Schakowsky

07/02/2024 | Press release | Distributed by Public on 07/02/2024 14:03

Schakowsky, Warren Slam Largest Nursing Home Lobbying Groups for “Sabotaging” Biden Administration’s Minimum Nurse Staffing Rules that Improve Quality of Care for Seniors

July 2, 2024

"There is no justifiable rationale for opposing this rule, but the nursing home industry, instead of acting in the best interests of its residents, is seeking to do so, with no accountability to the residents they serve."

Full Text of Letter (PDF)

WASHINGTON -U.S. Representative Jan Schakowsky (IL-09) and U.S. Senator Elizabeth Warren (D-MA) and sent a letter to two of the largest trade associations representing the nursing home industry - the American Health Care Association (AHCA) and LeadingAge - slamming them for opposing the Centers for Medicare & Medicaid Services' (CMS's) final rule that would, for the first time, set a national floor for minimum nurse staffing requirements in Medicare and Medicaid-certified nursing homes, improving quality of care.

The letter follows a November 2023 reportfrom Senator Warren which found that the CMS policy would result in higher quality ratings, fewer deficiencies in care, and lower levels of patient abuse, and the senator's May 2024 analysisthat found three of the largest public, for-profit nursing home chains handed out nearly $650 million in buybacks, dividends, and CEO salaries since 2018 - excess cash that could otherwise be put toward hiring more nurses and improving care.

"We are writing regarding the American Health Care Association and the National Center for Assisted Living's (AHCA/NCAL) and LeadingAge's shameless attempts to sabotage a long overdue CMS rule that would help millions of seniors living in nursing homes receive better quality care," wrote Representative Schakowsky and Senator Warren. "Your attempts to reverse this rule make a mockery of your claim that you have an 'unwavering… dedication to providing quality care solutions for people who are frail, elderly, or living with disabilities,' and you should put a halt to these misguided efforts."

The nursing home industry has been fighting tooth and nail against this rule since its inception: in 2023, AHCA spent nearly $4.15 million on lobbying - the most it has ever spent in a single year. AHCA has spent nearly $17 million on lobbying since 2020, and LeadingAge has spent over $750,000 over the same period. After CMS finalized the minimum nurse staffing rule on April 22, 2024, AHCA and LeadingAge announced that the groups were "exploring all options" to "halt the regulation's implementation." Most recently, on May 23, 2024, AHCA, joined by LeadingAge, filed a lawsuit against the U.S. Department of Health and Human Services (HHS) and CMS challenging the rule, and House and Senate Republicans have advanced legislation to prevent it from taking effect.

"The basis of the nursing home industry's opposition to this rule appears to be quite simple: greed," continued Representative Schakowsky and Senator Warren. "Continued industry claims that nursing homes cannot afford to hire more nurses are undermined by a recent investigation by our offices, which found that for-profit nursing homes have been stuffing hundreds of millions of dollars into their pockets with sky-high executive salaries, massive dividends, and large stock buybacks… while claiming they could not afford to meet the rules."

"There is no justifiable rationale for opposing this rule, but the nursing home industry, instead of acting in the best interests of its residents, is seeking to do so, with no accountability to the residents they serve. You owe Congress and the public an answer for why you are spending millions of dollars on lobbying and campaign contributions in support of policies that would harm the residents living in nursing homes," concluded the lawmakers.

###