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Maine distributes $30 million one-time payment to boost nursing facilities

The last resident of Narraguagus Bay Health Care facility is moved out.
Patty Wight
/
Maine Public
The last resident of Narraguagus Bay Health Care facility is moved out. The nursing facility is one of nearly thirty that have closed in Maine over the last decade.

Maine is distributing a $30 million one-time payment to nursing facilities across the state, to help cover staffing and operating expenses. The payments come as many facilities struggle with increased costs and a severe labor shortage.

The funding comes from the state's supplemental budget, signed into law earlier this year.

The money can be used to offset labor cost, capital expenses, and other needs.

Angela Westhoff, president of the Maine Health Care Association, said the money will also help with recruitment, at a time when many nursing homes are struggling to attract and retain workers.

"This is definitely the worst labor shortage in over a decade that nursing homes have seen, and there are two jobs for every available worker right now in Maine," she said.

She said while the money is a crucial stopgap, the industry needs more durable reform.

"I would say that one time payments are helpful. They certainly do not solve the chronic issue of underfunding, meaning that MaineCare reimbursement rates have not kept pace with the cost of providing care," Westhoff said.

Westhoff said nursing facilities are watching closely as the state updates its reimbursement formula. Those new rules, once finalized, will go into effect in January.