Nursing Home Closures Surge in Iowa, Linked to Workforce Shortage and Regulatory Violations

SIOUX CITY, Iowa – Three nursing homes in Iowa are in the process of closing, including a Sioux City facility that has faced regulatory violations related to resident injuries and deaths. Countryside Health Care Center, one of Iowa’s larger nursing homes, announced on Thursday that it will be closing within the next 60 days due to financial pressures. This brings the total number of Iowa nursing homes to announce closure since June 2022 to 26.

State inspectors previously cited Countryside for violations related to four resident deaths earlier this year. The facility, with a maximum occupancy of 101 residents, had a dwindling population, with only 54 residents living there in May. In addition to Countryside, Valley View Community Home in Butler County and Pocahontas Manor in Pocahontas County are also in the process of closing, contributing to an ongoing wave of nursing home closures in Iowa.

The closure of several nursing homes prompted the Iowa Legislature and governor to place a moratorium on the licensing of any new nursing homes, in an effort to protect industry players from added competition. However, this move could also result in fewer options for residents when forced to relocate due to a closure.

Furthermore, the Legislature passed a $15 million increase in Medicaid reimbursement rates for Iowa nursing homes, which combined with federal matching dollars, will generate a total of $47 million in added reimbursements. Workforce shortage is cited as a key factor behind the closures, with rural nursing homes facing significant challenges in maintaining qualified staff.

The federal government is considering a proposed rule to establish the first-ever federal staffing standards for nursing homes, a move that has received mixed reactions from industry players and advocacy groups. A staffing mandate is supported by some, believing it will improve the quality of care, while others oppose it, citing concerns about the impact of such a rule on rural healthcare.

State and county records show that Countryside Health Care Center is owned by a New York-based real estate company, with federal regulators levying fines against its owners and the facility being added to the federal government’s list of the nation’s worst nursing homes.

In summary, the closure of multiple nursing homes in Iowa has raised concerns about the availability of care options for residents, the impact of workforce shortages, and the need for federal staffing standards to improve the quality of care. These developments have brought attention to the challenges faced by the nursing home industry and the potential consequences for residents and their families.