Rockford Sun

A coalition of bipartisan lawmakers and industry leaders gathered at the Illinois State Capitol to advocate for reforms in Medicaid reimbursement rates for skilled nursing facilities. They are pushing for the passage of SB1606/HB2858 to help address the financial struggles faced by nursing homes, which are exacerbated by increased costs and persistent staffing shortages. The proposed legislation would align Medicaid reimbursement rates with current economic conditions, bringing in an additional $200 million in federal Medicaid matching funds to the state.

Rep. Bob Rita (D-Blue Island), chief house sponsor of HB2858, emphasized the urgency of the matter, stating, "This is a critical moment for our seniors. It's the difference between ensuring they can age with dignity or leaving them with no safe option for their care. Illinois must step up and pass this legislation to keep nursing homes open and ensure residents continue receiving quality care."

Since the onset of the COVID-19 pandemic, 31 skilled nursing facilities in Illinois have shut down, with the state's largest independent operator declaring bankruptcy in 2024. The closures have particularly affected rural communities, leading to increased travel distances for seniors seeking care and contributing to job losses in areas where the nursing home industry serves as a significant employer.

Rep. Norine Hammond (R-Macomb) highlighted the challenges faced by rural areas, explaining, "We talk often about rural hospitals, but the rural long-term care crisis is just as real. When a nursing home closes in a small town, residents can't simply go to the next town over. It means losing jobs, beds, and essential care in places that may never recover."

In urban settings like Chicago, the situation is similarly pressing. Sen. Ram Villivalam (D-Chicago) noted, "I represent the district with the highest concentration of nursing homes in the state. These homes are lifelines for so many families. But they can't survive on outdated funding."

Sen. Dave Koehler (D-Peoria), chief senate sponsor of SB1606, stressed the importance of updating the reimbursement system. "We can't expect 2025 care to be paid for with 2017 dollars. The longer we wait to fix the reimbursement system, the more vulnerable our long-term care network becomes."

The broader implications of underfunded nursing homes were addressed by Sen. Dave Syverson (R-Cherry Valley). He said, "Underfunded nursing homes mean more seniors in hospitals instead of receiving long-term care, which is more expensive and less effective."

Matt Pickering, executive director of the Health Care Council of Illinois, underlined the critical condition of facilities struggling to maintain staff. "Our providers are doing everything possible to stretch their budgets and recruit workers, but the math no longer works."

Administrators shared personal stories of the financial strain experienced at their facilities. Ambreen Qureshi, Vice President of Operations at Legacy Healthcare, spoke on behalf of nearly 500 nursing homes, and Kenya O'Neal, Administrator at Cedar Ridge Health and Rehab Center, recounted the difficult decisions regarding sustaining services within budget constraints.

Bipartisan support and backing from providers underscore the urgent need for Medicaid rate reform. Without prompt legislative action, more closures, job losses, and care disruptions are expected. SB1606/HB2858 is seen as a necessary first step toward stabilizing long-term care in Illinois and ensuring continued quality care for seniors in their communities.

For more information, visit ProtectLongTermCare.com. To hear Senator Syverson’s comments from the press conference on April 8 at the State Capitol, visit https://www.youtube.com/watch?v=v4LhjGu9Pfw.