WHITEHALL, PA − April 10, 2026 − Senate Democratic Policy Committee Chairman Nick Miller held a hearing on nursing home sustainability, the aging population across the state and region, the anticipated needs of the aging community, impacts on the workforce, and actions we can take to keep these imperative organizations open.
“We heard a clear message: we must urgently protect our most vulnerable residents with stronger and more sustainable infrastructure,” he said. Senator Miller. “As Pennsylvania nursing homes struggle with staffing shortages, growing shortages and increased pressures, we cannot fall behind other states. I thank our witnesses for their time. I look forward to bringing these solutions back to Harrisburg to advocate for policies that allow all seniors to age with dignity.”
“Lancaster has a significant retirement age population and I am committed to working with my colleagues to ensure they have access to the high-quality care and housing they need to age with dignity,” she said Senator Malone. “There are 30 senior housing units in my district and one of my priorities is to ensure that these and facilities across the commonwealth can be maintained while providing housing that our seniors can afford.”
“Ensuring seniors can age with dignity means ensuring they have access to safe, affordable and high-quality housing and care,” she said. Senator Kane. “The 9th District is home to dozens of senior living communities and assisted living facilities that families rely on every day. Our seniors deserve the stability, respect and access to the vital resources they need to live with dignity, and I will continue to fight to make this a reality here in Pennsylvania.”
“Our seniors and people with disabilities deserve high-quality care that provides them with support and dignity at the most vulnerable moments of their lives,” she said. Senator Kim. “But when nursing homes and care facilities are underfunded, they bear the brunt of the consequences. The quality of care declines, they lose care staff and facilities close, leaving them without the care they desperately need. With an increasingly aging population, we must do more to meet their growing needs, as well as the family members, staff and care home facilities who care for them.”
Michael Jacobs, president and CEO of the Pennsylvania Healthcare Association, testified about the reimbursement challenges our members face and the impact these challenges have on their ability to provide high-quality care.
“When nursing homes are underfunded, residents, families and workers suffer the consequences,” Jacobs said. “Facilities are delaying capital improvements. Staffing remains stretched. Admissions may become more difficult. In some communities, providers are close at hand and families are forced to seek care further from home.”
Rhea Goodwin, regional director of operations for Eden East Healthcare Management, spoke about the burnout the industry is struggling with.
“Over the last six years, I have seen strong, committed leaders, people I would trust taking care of my family, reach a point where they just couldn’t do it anymore,” Goodwin said. “Not because they don’t care, but because the system they work in pushes them beyond what is reasonable. When we lose these individuals, we lose the administrators, stability and leadership that our residents and staff depend on.”
Chuck Quinnan, senior vice president and chief government affairs officer at LeadingAge PA, spoke about the urgent need for predictable and sustainable Medicaid reimbursement for Pennsylvania nursing homes.
“A major factor in this instability is the Budget Adjustment Factor (BAF), an outdated funding mechanism implemented by the Pennsylvania General Assembly 20 years ago to serve as a temporary tool to help contain rising nursing home costs,” Quinnan said. “Fast forward to 2026, and BAF continues to reduce actual Medicaid reimbursement rates well below the cost of care calculated by the Department of Human Services.”
Joe DeMattos, Senior Vice President of Public Affairs at Marquis Healthcare Consulting, testified today to raise awareness of the crisis in our healthcare system.
“Given the increased demand for health care professionals across all settings, the specialized nature of the care we provide, and the growing needs of an aging population, we continue to face significant workforce challenges,” DeMattos said. “Despite rising wages and benefits, we are having difficulty recruiting and retaining staff, especially registered nurses. At facilities like Cedar Crest Post Acute and Riverton Rehabilitation and Healthcare Center, these challenges are not theoretical (they are real) and represent daily operational pressures.”
Mary Kay McMahon, president and CEO of Fellowship Community, highlighted three major challenges facing providers across the state: unstable and inadequate Medicaid reimbursement, especially the impact of the Budget Adjustment Factor (BAF); ongoing labor shortages and the need for flexibility in care delivery; and administrative delays in Medicaid eligibility and “waiting for MA” that create financial risks for providers and uncertainty for families.
“Pennsylvania faces a growing long-term care crisis. Our population of people aged 85 and over continues to grow, while the availability of nursing home beds continues to decline,” McMahon said. “While the Fellowship community has not yet been forced to limit admissions or close beds, the challenges we face are real and increasingly difficult to overcome. The root cause of this crisis is persistent underfunding and unpredictability of Medicaid reimbursement.”
Nichole Peardon, supervisor of the Ombudsman for Lehigh, Northampton and Berks Counties for Catholic Charities in the Diocese of Allentown, mentioned residents’ awareness of stress.
“Residents are also aware of the stress and strain on workers trying to do more with less,” Peardon said. “Issues of dignity, disrespect and verbal abuse are on the rise, with residents reporting staff talking on the phone while providing care, being short-tempered, distracted and retaliating when reported. Residents express the impression that facilities are less likely to discipline or fire staff who are verbally aggressive because it is so difficult to find staff.”
Louise Santee, CNA and Med Tech of Phoebe Allentown & SEIU, spoke about people staying home longer because they cannot afford to come to the facility.
“People are living without proper care because they can’t afford health care,” Santee said. “This means that by the time our patients arrive at the facility, more staff and resources are needed to provide them with the care they need.”
Testimony at the hearing were:
- Michael Jacobs, president and CEO – Pennsylvania Healthcare Association
- Joe DeMattos, senior vice president of public affairs at Marquis Health Consulting
- Rhea Goodwin, Regional Director of Operations – Eden East Healthcare Management
- Charles Quinnan, Senior Vice President of Government Affairs – LeadingAge PA
- Mary Kay McMahon, President and CEO – Fellowship Community
- Louise Santee, CNA and Med Tech – Phoebe Allentown and SEIU
- Nichole Peardon, Supervisor Ombudsman for Lehigh, Northampton and Berks Counties, Catholic Charities – Diocese of Allentown
- Mary Jo Julian, Ombudsman, Lehigh and Northampton Counties, Catholic Charities – Diocese of Allentown
Senator Nick Miller was elected political chair of the Senate Democratic Caucus in December 2024.
Footage of the hearing and written testimony from the panel are available at: PASenatorMiller.com/Policy. Downloadable photos and videos are available upon request.
Learn more about AP Senate Democrats’ commitment to protecting our Commonwealth’s health care needs and other legislative priorities at www.pasenate.com.
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