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Southwestern University Nursing Homes Face Medicaid Risks

A calm nursing home in Southwestern Pennsylvania showcasing the care environment for elderly residents.

Southwestern Pennsylvania, August 5, 2025

News Summary

Four nursing homes in Southwestern Pennsylvania are at risk due to a federal spending plan affecting Medicaid funding, as per a Brown University study. The study identifies that nearly 600 nursing homes nationwide are impacted, including 15 in Pennsylvania. These facilities often have low occupancy rates and rely heavily on Medicaid. Recent closures in the area highlight the ongoing crisis. The implications of funding changes could lead to increased operational struggles and diminished care quality in nursing homes, raising concerns about the overall healthcare system.

Pittsburgh, PA – Four nursing homes in Southwestern Pennsylvania are facing potential risks due to a federal spending plan, known as the “One Big Beautiful Bill,” recently approved by President Donald Trump. A Brown University study indicates that nearly 600 nursing homes nationwide may be impacted by changes in Medicaid funding, with 15 facilities specifically identified in Pennsylvania.

The study highlights that at-risk nursing homes typically have occupancy rates below 80%, while over 85% of their residents rely on Medicaid for their care. Among the facilities recognized in the study are two located in Allegheny County, one in Westmoreland County, and another in Somerset County. These nursing homes face increased vulnerability as funding changes could severely affect their operational capabilities.

Since 2019, over 30 nursing homes across Pennsylvania have closed, including several in the Southwestern region. A recent closure of the Pittsburgh Skilled Nursing and Rehabilitation Center in Shadyside in August 2024 left 140 residents without a home, underscoring the urgent issues facing these facilities.

The study was led by Professor Vincent Mor of Brown University, utilizing data from the Centers for Medicare and Medicaid Services for the year 2023. The Westmoreland Manor, a county-owned nursing home also highlighted in the study, currently does not anticipate any concerns regarding its operations, with about 95% of its residents depending on Medicaid.

Other mentioned facilities, including Cheswick Rehabilitation and Wellness Center and Meadow View Nursing Center, did not respond to inquiries regarding their status. The Pennsylvania Coalition of Affiliated Healthcare and Living Communities noted that nonprofit nursing homes should face less severe impacts from Medicaid adjustments compared to privately-owned or hospital-based facilities.

Executive Director Chase Cannon forecasts minimal negative repercussions for Medicaid residents in nonprofit county-owned homes, attributing this to different funding models. The provider fee system, implemented by states to tax hospitals, matches federal contributions and strengthens Medicaid funding.

Nonetheless, any changes to funding may significantly affect Pennsylvania’s Medicaid program, with estimates suggesting losses exceeding $53 billion over the next decade. These funding changes could lead to a rise in uninsured populations and degrade the overall healthcare systems, manifesting in greater demand for care amidst fewer resources.

Moreover, new legislation set for implementation by December 31, 2026, imposes stricter work requirements on Medicaid recipients, further straining healthcare providers. The potential decrease in Medicaid reimbursement rates may force nursing homes into exceeding their operational capacities, alongside raising care costs for non-Medicaid patients, which could result in increased medical debt for families.

Although the Trump administration asserts that the legislation does not cut Medicaid funding for eligible recipients, nursing homes in Pennsylvania currently receive some of the lowest reimbursement rates compared to neighboring states. As predictions suggest a decrease in the number of Medicaid expansion recipients due to the new work requirements, healthcare providers may encounter budgetary restrictions, thereby intensifying the challenges facing nursing home operations.

The ongoing evolution of regulations and funding models is set to significantly influence both the stability and the quality of care provided in nursing homes throughout Southwestern Pennsylvania.

FAQ

What does the “One Big Beautiful Bill” entail for nursing homes?

The “One Big Beautiful Bill”, approved by President Trump, includes significant changes to Medicaid funding that may affect numerous nursing homes across the country, particularly those with high Medicaid-dependent residents.

How many nursing homes in Pennsylvania are at risk?

The Brown University study identifies 15 nursing homes in Pennsylvania that are at risk due to the changes in Medicaid funding.

Why are some nursing homes more vulnerable than others?

Nursing homes with occupancy rates below 80% and a large percentage of residents relying on Medicaid are deemed more vulnerable to funding changes.

What has been the impact of Medicaid cuts in Pennsylvania?

Changes in Medicaid funding have already led to the closure of over 30 nursing homes in Pennsylvania since 2019, highlighting an ongoing crisis in the local care infrastructure.


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Author: STAFF HERE GEORGETOWN

The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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