WHITEHALL, PA − April 10, 2026 − Senate Democratic Policy Committee Chair Nick Miller held a hearing on the sustainability of nursing homes, statewide and regional aging demographics, projected needs for the aging community, effects on the labor force, and actions we can take to keep these vital organizations open.
“We heard a clear message: we must urgently protect our most vulnerable residents with stronger, lasting infrastructure,” said Senator Miller. “As Pennsylvania’s nursing homes face staffing shortages, rising deficiencies, and increased pressure, we cannot fall behind other states. Thank you to our testifiers 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 substantial retirement-aged population, and I’m committed to working with my colleagues to ensure they have access to the quality care and housing they need to age with dignity,” said Senator Malone. “My district is home to 30 senior living facilities, and it is one of my priorities to ensure that these, and facilities across the Commonwealth, can sustain themselves while providing housing our seniors can afford.”
“Ensuring our seniors can age with dignity means making sure they have access to safe, affordable, and high-quality housing and care,” said Senator Kane. “In the 9th District, we are home to dozens of senior living communities and nursing homes that families rely on every day. Our seniors deserve stability, respect, and access to the essential resources they need to live with dignity, and I will continue fighting to make that a reality here in Pennsylvania.”
“Our seniors and those with disabilities deserve quality care that provides them with support and dignity during some of the most vulnerable times in their lives,” said Senator Kim. “But when nursing homes and care facilities are underfunded, they bear the brunt of the consequences. Their quality-of-care wanes, they lose caregiving staff, and their facilities close, leaving them without the care they desperately need. With our aging population on the rise, we must do more to meet their growing needs as well as those of the family members, staff, and nursing home facilities that care for them.”
Michael Jacobs, President & CEO of Pennsylvania Healthcare Association testified the reimbursement challenges confronting our members and the impact those challenges are having on their ability to deliver high-quality care.
“When nursing homes are underfunded, the consequences are borne by residents, families, and workers,” said Jacobs. “Facilities delay capital improvements. Staffing remains strained. Admissions can become harder. In some communities, providers close, and families are left scrambling to find care farther from home.”
Rhea Goodwin, Regional Director of Operations of Eden East Healthcare Management, spoke on the burnout the industry is facing.
“Over the past six years, I have seen strong, committed leaders, people I would trust, leading the care for my own family, reach a point where they simply cannot do it anymore,” said Goodwin. “Not because they don’t care, but because the system they are working in pushing them beyond what is reasonable. When we lose those individuals, we lose administrators, stability, and leadership that our residents and employees depend on.”
Chuck Quinnan, Senior Vice President and Chief Government Affairs Officer at LeadingAge PA, spoke on the urgent need for predictable and sustainable Medicaid reimbursement for Pennsylvania’s nursing homes.
“A key driver of this instability is the Budget Adjustment Factor (BAF), an outdated funding mechanism implemented by the Pennsylvania General Assembly 20 years ago, intended as a temporary tool to help curb rising nursing home costs,” said Quinnan. “Fast forward to 2026, and the BAF is still reducing actual Medicaid reimbursement rates well below the Department of Human Services’ own calculated costs of care.”
Joe DeMattos, Senior VP of Public Affairs of Marquis Healthcare Consulting testified today to raise awareness of a crisis in our healthcare system.
“Given the increased demand for healthcare workers 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,” said DeMattos. “Despite increasing wages and benefits, we are struggling to recruit and retain staff, especially registered nurses. At centers like Cedar Crest Post Acute and Riverton Rehabilitation and Healthcare Center, these challenges are not theoretical (they are real) and are daily operational pressures.”
Mary Kay McMahon, President & CEO of Fellowship Community, highlighted three major challenges facing providers statewide: unstable and inadequate Medicaid reimbursement especially the impact of the Budget Adjustment Factor (BAF); ongoing workforce shortages and the need for flexibility in care delivery; and administrative delays in Medicaid eligibility and “MA Pending” that create financial risk for providers and uncertainty for families.
“Pennsylvania is facing a growing long-term care crisis. Our population age 85 and older continues to grow, while the availability of nursing home beds continues to decline,” said McMahon. “Although Fellowship Community has not yet been forced to cap admissions or close beds, the challenges we face are real and increasingly difficult to manage. The root cause of this crisis is the persistent underfunding and unpredictability of Medicaid reimbursement.”
Nichole Peardon, Ombudsman Supervisor for Lehigh, Northampton and Berks Counties of Catholic Charities at Diocese of Allentown spoke on the residents being aware of the stress.
“Residents also are aware of the stress and tension among staff who are trying to accomplish more with less,” said Peardon. “Dignity issues, disrespect and verbal abuse are on the rise; residents report staff being on their phones while they give care, being short tempered, distracted, and retaliatory when they are reported. Residents express they feel facilities are less likely to discipline or fire staff who are verbally abusive because it is so difficult to find employees.”
Louise Santee, CNA and Med Tech of Phoebe Allentown & SEIU, spoke on people staying at home longer because they cannot afford to come to the facility.
“People live their lives without receiving the care they should because they cannot afford healthcare,” said Santee. “This means by the time our patients arrive at the facility, it takes more staff and more supplies to care for them properly.”
Testifiers for the hearing included:
- Michael Jacobs, President & CEO – Pennsylvania Healthcare Association
- Joe DeMattos, Senior VP of Public Affairs – Marquis Health Consulting
- Rhea Goodwin, Regional Director of Operations – Eden East Healthcare Management
- Charles Quinnan, Senior V.P. of Government Affairs – LeadingAge PA
- Mary Kay McMahon, President & CEO – Fellowship Community
- Louise Santee, CNA and Med Tech – Phoebe Allentown & SEIU
- Nichole Peardon, Ombudsman Supervisor 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 Policy Chair of the Senate Democratic Caucus in December 2024.
Footage of the hearing, as well as the written testimony of the panel, is available at PASenatorMiller.com/Policy. Photographs and downloadable videos are available upon request.
Learn more about the PA Senate Democrats commitment to protecting our commonwealth’s healthcare needs and other legislative priorities at www.pasenate.com.
Testimony
A Complete Picture
- Michael Jacobs, President & CEO – Pennsylvania Healthcare Association
- Michael Smith, RN, LNHA, Division President – Marquis Health Consulting
Providing a Community
- Rhea Goodwin, Regional Director of Operations – Eden East Healthcare Management
- Charles Quinnan, Senior V.P. of Government Affairs – LeadingAge PA
- Mary Kay McMahon, President & CEO – Fellowship Community
Investing in People