SIOUX FALLS, S.D. (AP) – A Sioux Falls nursing home will be the seventh one to close in South Dakota in the last three years.

Covington Care and Rehab told residents this week that the facility will be closing later this summer.

The South Dakota Health Care Association says Covington is the latest in a string of closures due to the state’s low Medicaid reimbursement rate. Nursing home leaders recently warned legislators the industry was on the verge of collapse because of the state’s low Medicaid reimbursement rate, which leaves nursing homes with a $42 million annual funding shortfall.

The Legislature passed a 10 percent increase in the state’s Medicaid reimbursement rate for nursing homes in the state’s 2020 budget and also revised its 2019 budget to begin the increase April 1.

AP-WF-06-05-19 1157GMT

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