After St. Louis nursing home closes, will others shut down?

Northview Village Nursing Home in north St. Louis abruptly closed last weekend after years of declined revenue and reduced profitability. This closure led to chaos in relocating residents and laying off workers without any prior warning. Industry insiders believe that this situation is an extreme example of the long-standing problems faced by the nursing home industry, with similar financial pressures affecting other facilities in the region.

The closure was particularly devastating for facilities that primarily serve Medicaid recipients, as these operators have always faced the most financial pressure due to lower Medicaid reimbursements. The COVID-19 pandemic only exacerbated these challenges as people who had the option to leave nursing homes did so, leading to declining resident counts and revenue.

The owner of Northview placed the blame on the government, stating that Missouri was not paying enough to keep the facility running. Records show that while the facility’s operational costs continued to rise, the number of residents steadily declined. The closure of Northview without notice raised concerns, and industry experts emphasized the need for transparency and financial accountability from nursing home owners.

Other nursing homes operated by the same company also face similarly low ratings from CMS, with three of them receiving one-star ratings and the remaining three receiving two-star ratings. The future outlook for the nursing home industry in the area remains uncertain, with concerns about more facilities facing closure in the coming years.

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