Wednesday, May 14, 2014

"Some military veterans are being forced to leave their nursing home. It’s an unintended consequence of President Obama’s executive order in February to raise the minimum wage for new federal contract workers from $7.25 to $10.10 an hour."

Vets Forced From Nursing Home by Obama Exec. Order - DML Daily

...Sandy Franks, public affairs officer at Shreveport’s Overton Brooks V. A. Medical Center, explains that nursing homes that have contracts for subsidized care from the Veterans Administration become federal contractors. If they cannot afford to raise their wages, their contracts will not be renewed....

In a statement, Gamble COO Matt Machen said, in part, “The additional labor expenses are simply unaffordable. As such, long term care providers have indicated that they will no longer seek or renew V.A. contracts.”

The V.A. agrees that this has the potential to be a national problem as more V.A. contracts with nursing homes expire.