Nursing home moratorium bill makes its way through the Indiana General Assembly

INDIANAPOLIS – Legislation sponsored by State Rep. Charlie Brown (D-Gary) that proposes a three-year moratorium on building new nursing homes was approved today by members of the Indiana House. State Reps. Edward Clere (R-New Albany) and Timothy Brown (R-Crawfordsville) also sponsored the bill.

Senate Bill 460 prohibits the Indiana State Department of Health from approving the licensure of new nursing homes and care beds. The bill also would allow remodeling any existing facility, continued construction of any nursing home currently being built, and any county with a 90 percent occupancy rate to build new facilities.

“Indiana already has too many empty beds to rationalize the construction of even more facilities and beds,” Brown explained. “The moratorium is needed to cut nursing home vacancy rates and ensure better health care for Medicaid patients.

Indiana’s average occupancy rate is about 76 percent for nursing home beds, well below the national average of 83 percent. The moratorium is expected to save state Medicaid expenditures of $2.2 million.

Indiana Health Care Association President Scott Tittle says nursing homes operate more efficiently when they’re full, and building more just splits up resident numbers, increases taxpayer costs, turns staff over, and lowers health care quality.

“Just because a building is brand-new doesn’t necessarily mean they provide the best health care,” noted Brown. “Quality health care is provided by experienced staff members who build rapport with their patients, not by freshly-constructed buildings.”

House members passed SB 460 by a close vote of 52-40. The measure now returns to the Indiana Senate so members there can concur with changes made in the House.