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Labor costs ’a crisis’ for Louisiana nursing homes

LTC Liability Monitor, January 12, 2006

The Louisiana Nursing Home Association (LNHA) announced this week that a quality-of-care crisis is on the horizon for Louisiana SNFs. In the wake of Hurricane Katrina, facilities in the hard-hit state must grapple with mushrooming labor costs and a delay of federal relief aid.

Payroll costs for nursing facilities have increased by 80% since the hurricane because so many bayou state workers were displaced, the LNHA told U.S. Newswire. Along with stretched resources and staffing shortages, the LNHA also noted the state's Medicaid reimbursement as a factor. At $95 per resident per day, it's the lowest in the country-"barely adequate" to cover costs, according to the LNHA.

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