Focus on PDPM Could Distract Skilled Nursing Operators from Current Risks

With a new payment model just eight months away, the skilled nursing industry has trained a laser-guided focus on maximizing patient outcomes and reimbursements under the system. But smart providers would be wise not to let the Patient-Driven Payment Model (PDPM) distract them from the pressing issues facing them between now and October 1. “Any […]

ICD-10 Coding Will Be Crucial Under PDPM — But SNFs Don’t Need to Become Experts

The Medicare payment model taking effect on October 1 this year represents a sea change for skilled nursing providers in that patient condition, rather than therapy minutes, will drive reimbursement. It also represents a sea change in the mechanics of reimbursement. Under the Patient-Driven Payment Model, ICD-10 codes will form the basis of reimbursements, making […]

MedPAC Unanimously Calls for $2 Billion in Skilled Nursing Payment Cuts in 2020

After floating a proposed recommendation to slash nursing homes’ Medicare reimbursements for fiscal 2020, a leading legislative voice on health care issues made it final last week. The Medicare Payment Advisory Commission (MedPAC) called on Congress to reduce funding for skilled nursing facilities by up to $2 billion in the next fiscal year, citing sufficient […]

Predicting Skilled Nursing Winners, Losers Has Never Been Tougher for Lenders

Despite optimism about the Patient-Driven Payment Model (PDPM) and demographic trends, there’s never been a more difficult time for investors to determine which operators will win and lose in the skilled nursing space — at least according to the leader of a major lender in the industry. Capital One Healthcare Real Estate closed 95 deals […]

NHI Sees Rehab-Heavy Skilled Nursing Development as ‘Home Run’

National Health Investors (NYSE: NHI) has made multiple pushes into skilled nursing as the calendar shifted from 2018 to 2019, with a specific eye toward higher-end rehab — and new construction. Before announcing its $50.3 million pickup of a Massachusetts senior housing complex with 164 skilled nursing beds this week, the real estate investment trust […]

Skilled Nursing Industry Split on Whether PDPM Will Boost or Cut Revenues

Leaders from multiple segments of the post-acute and long-term care industry have expressed optimism about increased reimbursements under the new Patient-Driven Payment Model (PDPM), but a survey of Skilled Nursing News readers revealed a much murkier picture. In the month of December, SNN asked our readership — which includes executives and other leaders at operators, […]

Despite Speech Push, Physical and Occupational Therapy Have Key Role Under PDPM

Speech therapy has taken center stage in discussions about the new Medicare payment system for skilled nursing facilities, but therapists and operators say providers can’t ignore physical and occupational therapy services as they adapt. In the months after the Centers for Medicare & Medicaid Services (CMS) announced the new Patient-Driven Payment Model (PDPM), speech therapy […]

Federal Shutdown Halts $3.6B HUD Loan Program for SNFs, and Backlog Will Linger

The partial government shutdown has brought a multi-billion-dollar program for skilled nursing facility acquisitions and refinances to a halt, and the backlog could complicate deals long after the impasse eventually ends. The Department of Housing and Urban Development (HUD) has stopped endorsing loans, the final step toward closing deals through the Federal Housing Administration’s (FHA) […]

Skilled Nursing Rents 10% Too High, Analysts Say

Skilled nursing rents must decline by about 10% across the board in order to ensure the facilities’ long-term stability, a Wednesday report from Green Street Advisors has concluded. Real estate investment trusts (REITs) must achieve rent coverage of around 1.9 times to achieve stability for their tenants, the real estate research firm’s analysts Lukas Hartwich […]

Sabra’s Matros: Vertical Integration Tough to Pull Off in Skilled Nursing

Few voices in the skilled nursing world have been as outspoken as Rick Matros, CEO of Sabra Health Care REIT (Nasdaq: SBRA). That’s why we thought he’d make the perfect subject for our inaugural episode of “Rethink: The Future of Skilled Nursing,” a new podcast from Skilled Nursing News. During our 30-minute conversation, Matros offered […]

Skilled Nursing Turnaround Specialist Sees ‘Continued Distress’ in 2019

The skilled nursing industry was roiled on several fronts in 2018. The new Medicare payment model from the Centers for Medicare & Medicaid Services was a major headline, but the year was also marked by several high-profile bankruptcies, receiverships, and general distress among SNFs. And the leader of a Connecticut-based operator that specializes in managing […]

Looking Ahead to the Top Skilled Nursing Trends of 2019

We’ve made it to the end of 2018, which will likely go down as one of the most eventful years in the history of the long-term and post-acute care industry. Between the first round of Value-Based Purchasing penalties taking effect and the rapid rollout of the Patient-Driven Payment Model (PDPM), it’s probably a safe bet […]

Private Equity Must Be Nimble, Innovative to Succeed in Skilled Nursing

Tempted by demographic trends and a new reimbursement system, private equity has taken a keen interest in the skilled nursing industry over the past year. But executives at these investment vehicles would be foolish to think they can plug their existing models into nursing home business and expect the same kind of success they may […]

Avamere Announces a ‘Micro CCRC’ with No Skilled Nursing

A regional senior care provider is looking to transform the traditional continuing care retirement community (CCRC) model by removing skilled nursing entirely — mirroring industry trends elsewhere. The Wilsonville, Ore.-based Avamere Family of Companies recently announced plans to open a “micro CCRC” in St. George, Utah. The development, which is part of the Sienna Hills master-planned […]

Provider Battles for Skilled Nursing Innovations in New High-Rise

With skilled nursing besieged from all sides, there is a pressing need for fresh designs and improved services. Recognizing this, a non-profit provider in Wisconsin has gone to great lengths to bring an innovative offering to the Milwaukee market, highlighting that it’s possible — but often difficult — to push the envelope in skilled nursing. Less than a decade […]

Using Community Colleges to Fight the Nursing Shortage

A shortage of well-qualified nurses and other frontline staff remains one of the major headaches for nursing home operators and investors around the country. Earlier this month, one state came up with a solution that’s getting bipartisan support: allowing community colleges to offer bachelor’s of science in nursing degrees (BSN). “There’s such a severe shortage […]

Could Trump’s Religious Objection Guidance Create SNF Turmoil?

On first glance, the Department of Health and Human Services’ new guidance on personal religious beliefs might not appear to affect the long-term care industry. Years from now, however, it could play an integral role in the way SNFs operate and staff facilities. When the government rolled out its two-pronged approach last week — establishing […]

How Skilled Nursing Can Ride Out a Wave of Bad Press

For some, any press is good press. But this phrase isn’t true for the skilled nursing and senior care space, which is facing a wave of negative media attention — including a damning article in Time Magazine that brought to light major concerns of abusive behavior toward residents and binding arbitration contracts that left some […]

Skilled Nursing M&A Crystal Ball 2018: Top Players’ Predictions

After a 2017 that saw a change in presidential administrations, continuing occupancy pressures, declarations that the industry is in a historic downward spiral, and the most sweeping tax overhaul in a generation, players in the skilled nursing mergers-and-acquisitions world might be wondering if 2018 could possibly bring even more turmoil. Earlier this week, Skilled Nursing […]