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New Brunswick Nursing Homes Not Immune to Weak Economy
Posted on Fri, March 20, 2009 at 5:16 pm
Nursing home residents in New Brunswick have been on a roller coaster ride with nursing home fees; recently which had been rising, only to be drastically cut, now only to rise by nearly 20% again. Prior to January 1, 2007 the average fee for nursing home care in the province hit $143 per day per resident, which covered accommodations (room and board) and operational costs, including staff, services, administration, supply, equipment, infrastructure, and mortgage expenses. In an effort to improve care and services to older adults, and according to then Family and Community Services Minister Carmel Robichaud, “to recognize the important role seniors have played in building our province” the government cut the per diem rate that residents had to pay to from $143 all the way down to a maximum of $70 per day, a whopping 51% reduction. Further, individuals who could not afford to pay this rate were eligible for a rate reduction. The new rate, effective at January 1, 2007 covered the accommodation portion of nursing homes costs, while the government subsidized the remaining fees.
In light of the ailing economy, and in an effort to balance provincial books, Finance Minister Victor Boudreau just announced (March 17) new measures that New Brunswick will be taking to deal with the challenges of a weak economy and a fiscal deficit. Although New Brunswick residents may have been pleasantly surprised to learn of pending income and corporate tax cuts, they were tempered by the introduction of service fees. Of particular importance to nursing home residents, ambulance rides, as of July 1, 2009, will now cost $130.60. This will affect both seniors living in the community and nursing home residents who need to be transferred to hospital due to sickness or injury.
Also of interest to those with family members in a nursing home is the announced increase in nursing home costs to $83 per day per resident. An increase of $13 per day equates to an additional $4,745 per year, which, for many older adults on a fixed income, will cut deeply into their static annual budgets. No question the government will defend this action by noting that $83/day is a far cry from the recent fees of $143/day, but that will be of little comfort to those who just got accustomed to a new rate that was 18.5% lower than the one announced on St. Patrick’s Day of 2009.
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