Skilled nursing facilities (SNFs) and assisted living centers (ALs) are an important part of today’s post-acute health care continuum and offer low cost, high acuity quality care to an important and growing demographic of Arizona’s population. Most long term care facilities serve a mix of AHCCCS, ALTCS, Veterans Affairs, Medicare and private pay residents. It is important to note that the vast majority of SNF residents and an increasing number of AL residents are funded by Medicaid, which is paid through AHCCCS and the ALTCS program.
Background
Prior to the COVID-19 pandemic, SNFs caring for Arizona Long Term Care Systems (ALTCS) members experienced a shortfall of $14.73 per patient per day, based on 2019 Uniform Accounting Reports (UARs) provided to the Arizona Department of Health Services (ADHS). Since then, costs and inflation have further skyrocketed for both SNF and AL centers due to increased infection control measures and workforce related expenses, to name just a few driving forces. Now, the current shortfall for skilled nursing facilities according to the most recent Uniform Assessment Report (UAR) is $32.47 per patient day. This shortfall impacts our ability to capably and compassionately serve Arizona’s exponentially growing elderly and physically disabled population.
Rate Increase Request
There are approximately 140 skilled nursing facilities and over 350 assisted living centers in Arizona. The network of long term care is fragile due to the limited number of facilities in operation and chronic underfunding. In order to ensure an effective system of long term care service delivery moving forward, AHCA is requesting a critically important funding increase. This request impacts both the Arizona Health Care Cost Containment System (AHCCCS) and the Department of Economic Security (DES) Elderly and Physically Disabled Programs. It is a cost to the General Fund of approximately $14.4 million, and in turn provides an enhanced federal match. This increase will provide essential support to:
- Help SNFs and ALs cover the rising cost of care to serve high acuity and medically complex ALTCS members. Many specialty services are offered in long term care settings, including ventilator care, bariatric care, dementia care and behavioral care.
- Maintain a viable rural network of SNFs throughout the state, protecting local access to care.
- Strengthen workforce development and support inflationary increases related to staff, PPE and other medically necessary items.
Skilled Nursing Facilities (SNFs) and Assisted Living centers (ALs) are lifelines for Arizona’s elderly and medically complex residents. Despite their essential role, SNFs and ALs are chronically underfunded, and the gap is growing. Facilities serving Arizona Long Term Care System (ALTCS) members now face a $32.47 per resident per day shortfall, jeopardizing their ability to care for the state’s most vulnerable.
We need your voice to urge state leaders to act now.
📞 Call or email your State Representative, Senator, and Governor Hobbs:
✅ Tell them to support the $14.4 million General Fund request for SNF and AL funding.
✅ Remind them this investment protects local access to critical care.
✅ Stress the urgency to stabilize Arizona’s long-term care system, support rural care facilities, and fund essential workforce and inflation-related costs.
Without action, more facilities will close, and Arizona families will be left without care options. Take 5 minutes to make your voice heard. Our seniors and disabled residents are counting on us.