Largest Nursing Home Provider in Texas Files for Bankruptcy
PRESS RELEASE
December 5, 2018
The following statement may be attributed to Kevin Warren, president/CEO of the Texas Health Care Association, on the Chapter 11 bankruptcy filing of the state’s largest long term care provider: Senior Care Centers
Largest Nursing Home Provider in Texas Files for Bankruptcy
(AUSTIN, Texas) — “There could not be a clearer warning signal about the seriousness of the state’s nursing home funding crisis than yesterday’s bankruptcy filing by Senior Care Centers LLC. Caring for over 10,000 patients and employing over 11,000 employees, this unfortunate announcement will have impact across the state and across the long term care sector. Jobs may be lost, local economies will be impacted, and most importantly, senior Texans and their families will be affected by the uncertainty and anxiety this creates.
“Chronic underfunding of long term care has become the norm in Texas. Seventy-five percent of Texas nursing homes report the state’s reimbursement does not cover the cost of care. Funding challenges are making it difficult for nursing homes to compete in the job market, leading to annual staff turnover rates that exceed 90 percent.
“This has reached a crisis level, and the timing could not be worse. The over-65 population in Texas is set to double by 2030. Fewer family caregivers are available to provide care for their loved ones. Increasingly complex medical conditions such as Alzheimer’s, Parkinson’s and other dementia require a different level of care in Texas nursing homes.
“We know that other nursing homes are struggling. We’ve already seen two other national nursing home companies leave Texas, and others are waiting to see if relief will come this upcoming legislative session before making future business decisions. We’re hoping this isn’t just a wake-up call for our state leaders, but a call to action to address this before this becomes widespread across the state.”
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