Skilled Nursing Occupancy Takes Slight Dip As Labor, Inflation Pressures Continue

Skilled nursing occupancy declined slightly, reaching 77.3% at the end of June, after seemingly positive momentum over the last several months.

Prior to the nine basis point decline seen in June, the sector saw occupancy pick up 522 basis points since its low point in January 2021, according to data from the NIC MAP Data Service, powered by NIC MAP Vision.

Authors of the monthly report suggest the staffing crisis is still placing a “significant burden” on operators, in addition to inflation pressures.

Related to the industry’s labor pressures is the anticipation of the federal staffing minimum standard that is set to be proposed by the Centers for Medicare & Medicaid Services (CMS) by Spring 2023.

In the long-term, however, skilled nursing demand is expected to grow over time, according to the National Investment Center for Seniors Housing & Care (NIC) report.

Data was collected from 25 contributors across 46 states with 1,210 SNF properties represented.

Managed Medicare revenue per patient day (RPPD) grew in the month of June but is down 1.4% from the same time last year.

Medicare fee-for-service RPPD was $581 in June and managed Medicare ended at $458 — a $123 differential, report authors noted. This compares to a $98 differential in February 2020.

Report authors noted that operators and investors should keep an eye on this potential trend closely, as managed Medicare continues to grow, and adjust accordingly.

Medicare revenue mix ended June at 21.9% but that still remains below its pandemic high of 24.8% in February, the report notes. Meanwhile, Medicaid revenue mix declined 134 basis points, ending at 49.6%.