As Zach Cattell, the newly appointed president and CEO of CarDon & Associates, celebrates wins, he is mindful of several challenges stemming from both federal and state policies, with the biggest one currently being Indiana’s shift to managed Medicaid. Managed Medicaid is only currently implemented in a few states such as Illinois, Iowa, Ohio and […]
A new bill introduced by Connecticut’s legislature could upend nursing home financing, especially those facilities that opt to be financed by a real estate investment trust (REIT) or private equity group. A surge of last-minute deals in the state is underway, as owners seek to lock in grandfathered Medicaid eligibility, according to a report from […]
Proposed Medicaid cuts are spurring widespread concern among nursing home providers, as reductions would severely impact care quality, staffing, and facility operations. Activity on the Hill and a new report puts the spotlight on potential impact to stakeholders. About 92% of providers are concerned about further Medicaid cuts, according to a May report from the […]
Legislators in Minnesota are debating deep cuts to the state’s human services budget, largely impacting nursing homes, to make up for a $6 billion budget deficit. The state’s House and Senate have until May 19 to agree on final cuts. The Senate’s version of the budget has $47 million in nursing home payment system changes, […]
In a bid to maintain operational strength for years to come, CareTrust REIT Inc. (CTRE) made some bold moves during the first quarter, including a $856 million strategic acquisition of U.K.-based Care REIT. CEO and President Dave Sedgwick cited the deal as an example of his company’s desire to seize a window of opportunity to […]
Congress may cut Medicaid provider taxes for nursing homes as a part of budget reconciliation, significantly impacting the sector as many providers rely on this avenue of reimbursement for crucial services and resident resources. These taxes are a key funding tool: providers pay a fee, matched by federal dollars, to support state Medicaid programs. But […]
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 […]
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