Flexibility and efficiency will fuel skilled nursing success
Though occupancy has been declining in skilled nursing facilities, falling from 87% in 2015 to 82% in 2016, the report from accounting and consulting firm Plante Moran projected a growth in occupancy over the next five to 10 years. Plante Moran’s analysis specifically pointed to the year 2030, when the entire baby boom population will be aged 65 and older — a segment that will account for 20% of the U.S. population, according to Skilled Nursing News.
Facilities that can provide cost-efficient, high-quality care have the best outlook in the face of this demographic trend, the report said. It listed two key attributes for success: Cost-effective management of an episode of care, and labor models that let providers move nimbly in response to occupancy changes.
“In any given year, you’re going to have peaks in your census and you’re going to have a lot of valleys,” Betsy Rust, partner at Plante Moran and one of the report’s authors, told Skilled Nursing News. “Owners and operators have to be looking at ways to manage the volatility better, with different staffing solutions primarily.”
The report included breakdowns of Medicare profitability, occupancy and payor mix, resource utilization group (RUG) concentrations, departmental cost per day and staffing cost per day — discussing each by region.
The Pacific region had by far the greatest Medicare profitability, defined as the operating results of caring for a Medicare Part A resident at a SNF, at $179 per patient day. This was double the national average of $89 in 2016.
The report included managed care payors in its “private” category for occupancy and payor mix. The West North Central region had the highest private pay concentration at 42%, and the lowest Medicare and Medicaid utilization at 47%.
The data represented more than 14,000 SNFs in the U.S.
Read the full story at Skilled Nursing News.
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Topics: Executive Leadership , Leadership , Staffing , Uncategorized