Long Term Care Facilities UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Long Term Care Crisis - CORRECT ANSWER - Nursing homes face severe financial
challenges in the U.S.
Bankrupcy- late 1990s and early 2000s decimated many of the industry's largest nursing facility
companies.
22% of U.S. nursing home beds were in bankrupt facilities.
Long Term Care in America / Assisted living facilities / nursign homes - CORRECT
ANSWER - Fill too slow to be profitable
Their cost (Average up to $30,000/yrs )
90% of their business is private-pay - financially beyond the reach of many
Home health agencies and companies have suffered a fate similar to nursing homes with
hundreds of recent bankruptcies.
Changes in Medicare reimbursement policies implemented in the BBA '97 and ongoing shortfalls
in Medicaid reimbursement exacerbated financial problems for home health providers, as they
did for the institutional providers.
Because of the long-term care providers' financial struggles and low profitability, debt and equity
capital to build, operate, and maintain extended care facilities have become severely limited
Once excited by the industry's potential based on seemingly promising aging demographics, Wall
Street investors have largely abandoned long-term care.
Balanced Budget Act of 1997 - CORRECT ANSWER - was an omnibus legislative
package enacted by the United States Congress, using the budget reconciliation process, and
designed to balance the federal budget by 2002.
, According to the Congressional Budget Office, the act was to result in $160 billion in spending
reductions between 1998 and 2002. After taking into account an increase in spending on Welfare
and Children's Healthcare, the savings totaled $127 billion. Medicare cuts were responsible for
$112 billion, and hospital inpatient and outpatient payments covered $44 billion.
Medicaid and Medicare's role in long term care facilities - CORRECT ANSWER - pay for
the vast majority of all professional home health and nursing facility services in the United
States, have become notoriously expensive.
Policy makers anguish over how to control the growth of expenditures in these programs without
increasing taxes or reducing services, a seemingly hopeless dilemma.
Notoriously low Medicaid nursing home reimbursement rates, often less than the cost of
providing the care, have hampered facilities' ability to hire, train and retain quality care giving
staff.
Nurses and nurse's aides are in very short and ever-declining supply.
Low-wage workers can find more attractive, less demanding work in other businesses.
Despite the high risk and enormous cost of long-term care, the public seems indifferent to the
subject.
The average costs for long-term care in the United States (in 2010) - CORRECT
ANSWER - $205 per day or $6,235 per month or $74,820 per year for a semi-private room
in a nursing home
$229 per day or $6,965 per month or $83,580 per year for a private room in a nursing home
$3,293 per month for care in an assisted living facility (for a one-bedroom unit)
$21 per hour for a home health aide
$19 per hour for homemaker services
$67 per day for services in an adult day health care center
The average costs for long-term care in the Idaho (in 2010) - CORRECT ANSWER - year
for a semi-private room in a nursing home
$228 per day or $6,935 per month or $83,220 per year for a private room in a nursing home
$2,985 per month for care in an assisted living facility (for a one-bedroom unit)
$19 per hour for a home health aide
ACTUAL Exam Questions and CORRECT
Answers
Long Term Care Crisis - CORRECT ANSWER - Nursing homes face severe financial
challenges in the U.S.
Bankrupcy- late 1990s and early 2000s decimated many of the industry's largest nursing facility
companies.
22% of U.S. nursing home beds were in bankrupt facilities.
Long Term Care in America / Assisted living facilities / nursign homes - CORRECT
ANSWER - Fill too slow to be profitable
Their cost (Average up to $30,000/yrs )
90% of their business is private-pay - financially beyond the reach of many
Home health agencies and companies have suffered a fate similar to nursing homes with
hundreds of recent bankruptcies.
Changes in Medicare reimbursement policies implemented in the BBA '97 and ongoing shortfalls
in Medicaid reimbursement exacerbated financial problems for home health providers, as they
did for the institutional providers.
Because of the long-term care providers' financial struggles and low profitability, debt and equity
capital to build, operate, and maintain extended care facilities have become severely limited
Once excited by the industry's potential based on seemingly promising aging demographics, Wall
Street investors have largely abandoned long-term care.
Balanced Budget Act of 1997 - CORRECT ANSWER - was an omnibus legislative
package enacted by the United States Congress, using the budget reconciliation process, and
designed to balance the federal budget by 2002.
, According to the Congressional Budget Office, the act was to result in $160 billion in spending
reductions between 1998 and 2002. After taking into account an increase in spending on Welfare
and Children's Healthcare, the savings totaled $127 billion. Medicare cuts were responsible for
$112 billion, and hospital inpatient and outpatient payments covered $44 billion.
Medicaid and Medicare's role in long term care facilities - CORRECT ANSWER - pay for
the vast majority of all professional home health and nursing facility services in the United
States, have become notoriously expensive.
Policy makers anguish over how to control the growth of expenditures in these programs without
increasing taxes or reducing services, a seemingly hopeless dilemma.
Notoriously low Medicaid nursing home reimbursement rates, often less than the cost of
providing the care, have hampered facilities' ability to hire, train and retain quality care giving
staff.
Nurses and nurse's aides are in very short and ever-declining supply.
Low-wage workers can find more attractive, less demanding work in other businesses.
Despite the high risk and enormous cost of long-term care, the public seems indifferent to the
subject.
The average costs for long-term care in the United States (in 2010) - CORRECT
ANSWER - $205 per day or $6,235 per month or $74,820 per year for a semi-private room
in a nursing home
$229 per day or $6,965 per month or $83,580 per year for a private room in a nursing home
$3,293 per month for care in an assisted living facility (for a one-bedroom unit)
$21 per hour for a home health aide
$19 per hour for homemaker services
$67 per day for services in an adult day health care center
The average costs for long-term care in the Idaho (in 2010) - CORRECT ANSWER - year
for a semi-private room in a nursing home
$228 per day or $6,935 per month or $83,220 per year for a private room in a nursing home
$2,985 per month for care in an assisted living facility (for a one-bedroom unit)
$19 per hour for a home health aide
