Funding for Wages and Benefits for Nursing Home Workers (Nursing Home Staffing Crisis Funding Act of 2024)
If enacted, SB328 would have profound implications for the state's approach to funding nursing home services. It would amend existing statutes to enforce a systematic approach whereby nursing home providers are required to submit annual cost reports to document wage disbursements. This level of oversight aims to enhance accountability among providers, ensuring that the funds earmarked for wage increases are properly allocated. Moreover, the bill introduces potential enforcement actions by the Department of Health against providers who fail to comply with these requirements, thereby instituting a regulatory framework focusing on proper fund utilization.
Senate Bill 328, titled the Nursing Home Staffing Crisis Funding Act of 2024, aims to address the pressing need for increased wages and benefits for nursing home workers in Maryland. The bill requires the Governor’s proposed budget for specific fiscal years to include a reimbursement rate increase for providers of nursing home and other healthcare services. This funding increase is intended to ensure that a significant portion is allocated directly towards the wages and benefits of staff providing direct care in nursing homes, supporting the overall staffing crisis faced by the industry. The bill specifically mandates that 75% of the funding increase for the fiscal years 2026, 2027, and 2028 be utilized for this purpose.
However, the proposed legislation may face contention from various stakeholders. Supporters argue that such measures are vital to attract and retain qualified staff in nursing homes, especially amid the current staffing challenges facing the industry. Critics, however, may raise concerns regarding the sufficiency of the proposed funding increases and how effectively they can alleviate the staffing crisis without imposing excessive financial burdens on state budgets. There may also be discussions regarding the broader implications of placing accountability on nursing homes, especially those that are already struggling financially.