A leaked budget document from the White House shows nursing home-related changes, notably potential elimination of health care workforce programs focused on geriatrics and other aging services, and a prioritization of survey and certification funding. The “pre-decisional” document titled, “The Department of Health and Human Services (HHS) 2026 Discretionary Budget Passback,” released by Inside Medicine, […]
An analysis of payor mix across 16,600 U.S. skilled nursing facilities (SNFs) shows that almost 60% of patient days at nursing homes on average were covered by Medicaid, compared to only 10% at hospitals. According to Definitive Healthcare’s data review of SNF payor mix by total patient days, on average, Medicaid accounts for 59.1%, with […]
Financial leaders were generally more optimistic at the beginning of the year in terms of a capital market forecast. Now, however, that outlook has changed due to perceptions of economic instability and the threat of potential federal Medicaid cuts. Now, for facilities to succeed at raising funds for additions or improvements, possession of liquidity and […]
Nursing homes owned by eight county-owned hospitals in Indiana generated roughly $2 billion in supplemental Medicaid payments between 2018 and 2023, but only two-thirds of that amount actually went to the nursing homes. The other third, about $649 million, was made available to the hospitals instead, according to an investigative report published on Tuesday in […]
Razor thin margins have been a hallmark of operators in the nursing home industry for some time, but lackluster Medicaid rates and the possibility of Congressional cuts to Medicaid may push some over the edge. The spectre of closures, and in turn access issues for residents and their family members, has been haunting the industry […]
The Medicare Payment Advisory Commission (MedPAC) has recommended that Congress reduce nursing home Medicare base payment rates by 3% for 2026. The Commission tempered their cut, they said, acknowledging uncertainty around the impact of the new nurse staffing requirements on costs to the sector next year. While many in the sector expect the mandate to […]
American Healthcare REIT (NYSE: AHR) executives highlighted the strong performance of its Trilogy assets, praising Trilogy’s model for its diversity and flexibility in adjusting to changing market conditions, including possible cuts to Medicaid, and reimbursement for skilled nursing services. Additionally, the executives said that if the proposed Medicaid cuts were to be enacted, Trilogy would […]
As Congress moves forward with a Republican budget resolution, Medicaid may be on the chopping block, with state governments expected to bear the cost. Nursing home leaders are warning that the cuts, if enacted, could hit the sector hard. On Tuesday night, the House narrowly passed a budget resolution, 217-215, losing only one Republican vote. […]
Executives for National Healthcare Investors (NYSE: NHI) shared optimism about the financial performance of its skilled nursing holdings and plans to expand that part of the portfolio. However, they deemed the nursing home assets too expensive at the moment, with few opportunities at reasonable pricing that meet the real estate investment trust’s (REIT) underwriting criteria. […]
LTC Properties (NYSE: LTC) continues to reduce its exposure to skilled nursing in the year ahead, with one of its top 10 operators opting not to renew its lease, which is set to mature in January 2026. Moreover, the REIT is actively negotiating offers to sell seven skilled nursing facilities from that operator, based on […]
Skilled nursing deals are plentiful, and private equity has a large role to play in their abundance, according to leaders at Sabra Health Care REIT (Nasdaq: SBRA). This trend comes amid the possibility of Medicaid cuts, which could be watered down eventually from the current package presented by House Republicans, they noted. Speaking during Sabra’s […]
CareTrust REIT (NYSE: CTRE) executives said Thursday that they have no plans to slow down dealmaking in 2025, noting that the fundamentals for skilled nursing remain strong. They anticipate no major disruptions from potential Medicaid or Medicare changes under the new administration, high interest rates, and exposure to PACS Group (NYSE: PACS) holdings. “Financial markets, […]
Nursing home leaders are hoping that the Department of Health and Human Services’ (HHS) new chief, Robert F. Kennedy Jr., who was sworn in on Thursday, will commit to protecting Medicare and Medicaid and undoing the federal staffing mandate. Republican lawmakers are pushing for potential Medicaid cuts in their spending bill due to be finalized […]
As Republican lawmakers’ push for potential Medicaid cuts have gained more attention in recent weeks, claims that older adults, including those in nursing homes, will likely be insulated from the financial fallout have also surfaced. However, experts are now suggesting that this may not be the case after all. Executives in the skilled nursing sector […]
Some nursing homes in New York may be forced to close their doors without an increase in Medicaid funding, a dire warning as the state legislature starts its budget hearings. Elemental Management Group, which owns and operates eight nursing homes in Upstate New York, is losing about $2 million annually as costs rise and operators […]
Days after the Trump administration issued an executive order to freeze federal aid, it has been rescinded. The order affected Medicaid funding, with at least 20 states on Tuesday unable to draw funds. More than six out of 10 nursing home residents rely on Medicaid to cover their daily care; it’s a critical safety net […]
During a heated first confirmation hearing on Wednesday, Robert F. Kennedy Jr. raised concerns over the practicality of the nursing home staffing mandate, acknowledging the risks it poses to access of care, especially in rural communities. He also shared his vision for lowering overall health care costs. Kennedy is seeking to lead the $1.7 trillion […]
Potential Medicaid cuts under President Donald Trump, amounting to more than $2.3 trillion over the span of a decade, are likely amid Republican leadership’s reluctance to trim Medicare and Social Security, with the nursing home sector expected to face deep impacts. In total, House Republicans are exploring over $5 trillion in potential cuts to offset […]
Nursing home residents that receive Medicaid benefits may be affected by a change in federal poverty level standards, which are applied to eligibility requirements. To match inflationary costs, the Centers for Medicare & Medicaid Services (CMS) on Friday announced a 2.9% increase in price between 2023 and 2024. With the exception of Alaska and Hawaii, […]
Ninety-two nursing homes have filed a federal lawsuit against the New York State Department of Health (DOH), as the agency approved no reimbursement for older facilities needing capital improvements in 2025. This is an addendum to the state’s 10% reduction for the industry approved in April. The cost-cutting amendment adopted by the state DOH and […]
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