Occupancy continued to grow through the month of June for nursing homes — five months in a row — according to NIC MAP data released Thursday by NIC MAP Vision.
That’s 297 basis points up from the industry’s low of 71.2% in January. June’s occupancy percentage was 74.2%.
Investors are optimistic for the future of skilled nursing, NIC MAP Vision said, but stressed the second half of the year will be “crucial” in determining the overall occupancy trend for the year.
“The expectation is that admissions will continue to increase with rising demand and elective surgeries will continue to provide support for additional admissions to skilled nursing properties,” NIC MAP Vision said in its report, while cautioning that occupancy levels are still low compared to pre-pandemic levels, and that cash flow and liquidity continue to be a challenge for some SNFs.
The delta variant threatens to dampen these levels too, in states with lower vaccinated populations.
Overall, occupancy is down 11.2 percentage points compared to February 2020, which had an occupancy level of 85.4%.
Managed Medicare revenue per patient day (RPPD) was steady through June but was 4.2% less than what properties saw during the same month last year; the decline is tied to the widening reimbursement differential between Medicare fee-for-service and managed Medicare, the report stated.
Medicare fee-for-service RPPD was $560 for June compared to $453 for managed Medicare, a differential of $107. In February 2020, the differential was $92. NIC MAP Vision said operators should view this trend and “adjust accordingly.”
As fewer COVID-19 cases in properties led to less utilization of the 3-day rule waiver, revenue mix and RPPD for Medicare continued to decline in June from what NIC MAP Vision calls the “pandemic high” of 24.8% set in January of this year for revenue mix — June’s Medicare revenue mix was 20%.
Medicaid patient day mix saw a slow increase throughout the month, ending at 66.5%. Data show an increase of 292 basis points from the pandemic low of 63.6% in January. Medicaid revenue mix remained relatively flat from the prior month, with the exception of RPPD declining 1.4% due to less reimbursement support from states as COVID cases decline.
The number of NIC MAP Vision report contributors declined from 28 to 27 between May and June, with a drop in total SNF properties from 1,364 to 1,316. Data still represents 47 states.
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