Repositioning Nursing Homes For Acuity, More Closures, Less Deal Making Expected in 2024

As the skilled nursing industry heads toward a new year with continued labor shortages and reimbursement gaps, service repositioning and closures among operators are expected trends for the space. And although there are signs of positivity in the form of increased Medicaid reimbursement in some states, extensive rural closures are creating “nursing home deserts” and […]

Dealmaking In Nursing Homes: Bubble Will Burst As States Aim for Budget Neutrality During Medicaid Recalibration

In adjusting to new case-mix systems under the Patient Driven Payment Model (PDPM), the changes to reimbursement rates might be more widespread and large-scale than anticipated, posing financing threats to the nursing home sector because lenders are basing loans on rate projections that are expected to be scaled back. The goal of budget neutrality – […]

Nursing Homes Must Advocate for Medicaid Increases, as States Work En Masse to Rebase Rates

The past year or two have seen big wins in terms of increased Medicaid funding for nursing homes – a welcome relief as the sector faces staffing shortages amid a looming minimum staffing proposal, higher inflationary costs and rising acuity of resident needs. The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) […]

How Medicaid Waivers Have Affected Nursing Home Utilization – And Why the Staffing Proposal May Further This Trend

One of the unintended consequences of the minimum staffing proposal may mean less utilization of nursing homes as residents are shifted to other means of care – a trend spurred by an expanded use of Medicaid waivers. Policymakers may opt for these as a safety net for access issues among seniors, especially in rural settings, […]

Nursing Home Construction Dwindles As Operators Downsize – But a Lack of Medicaid Beds is Most Concerning

As nursing home operators continue to decry staffing shortages as a contributor to access issues for residents, new construction of facilities to meet demand appear to be lagging as well. New construction has become especially difficult for operators trying to add Medicaid beds for low income residents, given notoriously low reimbursement rates – which are […]

‘Sirens Going Off’: Providers Warn of Mass Closures, Vast Nursing Home Deserts Due to Staffing Mandate

As nursing homes closures continue across the country, “nursing home deserts” are expanding, and the proposed federal staffing mandate is expected to exacerbate the problem. This is despite attempts to make the potential policy change easier for providers in rural markets, which are especially vulnerable to access issues. Operators in these areas point to the […]

Resident Voice Remains Main Focus of MDS Changes, As Nursing Home Providers Adjust and Educate

More than a week after updates to the Minimum Data Set (MDS) went into effect, each section change seems to be emphasizing focus on the resident’s voice, which along with substantial coding changes – four years in the making – will require time to incorporate, experts said. Kevin Cezat, director of clinical excellence for Therapy […]

AHCA: Staffing Proposal to Cost $6.8B Per Year, Create Access Issues for Nearly One Quarter of Nursing Home Residents

More than 280,000 residents, or nearly a quarter of all residents, could be impacted by the staffing mandate – if nursing home operators have no choice but to reduce their census in order to meet hourly requirements. The proposed federal mandate would require an estimated 102,154 additional full-time employees. That’s 80,077 certified nursing assistants (CNAs) […]

Sabra CEO: Reimbursement Hikes May Be Even Bigger Next Year to Account for Inflation 

Nursing home occupancy continues to slowly improve, a trend that along with higher reimbursement rates going forward, will improve the bottom line for Sabra Healthcare REIT (Nasdaq: SBRA), according to executives. Rick Matros, CEO of Sabra, said during the company’s second quarter earnings call on Tuesday that he expects a large increase to next year’s […]

Nursing Home Occupancy Creeps Up to Hover at 81%, While Admission Roadblocks Persist

While staffing shortages continue to create admission roadblocks, the demand for skilled nursing care is recovering. From April to May, SNF occupancy decreased 3 basis points to end at 81%, according to the latest skilled nursing monthly report released by NIC MAP Vision. Pre-pandemic occupancy was 88.9%. Still, occupancy is up 97 basis points compared […]

Ensign CEO Expects a Long Comment Period for Potential Minimum Staffing Mandate as Company Focuses on Deals, Retention

Nursing home operators can expect a long comment period once the federal minimum staffing mandate comes out, potentially drawing out into the following year before anything is finalized. Barry Port, CEO of the Ensign Group (Nasdaq: ENSG), said during the company’s second quarter conference call on Friday, that this is the tiniest bit of clarity […]

A Payor Mindset, Population Health Focus Are Key to Success as the SNF Industry Evolves

Leaders at nursing homes could create long-term value for their organizations if they adopted a population health focus, empowered local leaders and pursued actively value-based purchasing models. That’s according to a report published by CliftonLarsonAllen (CLA) earlier this month. In an industry facing seismic changes, SNF operators should seize strategic opportunities, empower local leadership, and […]