The impact of COVID-19 on skilled nursing facility (SNF) operators all across the country has made for a tough 2020. However, there is good news: the fundamentals of the SNF business continue to be relevant. While the pandemic has strained operators’ ability to establish priorities, our top-level guidance is to execute on the fundamentals.
Due to the pandemic, emphasis has appropriately been placed on Provider Relief Funds (PRF), personal protective equipment (PPE), and the Paycheck Protection Program (PPP). While focus has shifted, keep sight on per patient day costs (PPDs), staffing levels, and reimbursement opportunities as well. For SNF operators and investors, a thorough review of national operating and financial metrics can help you determine how a facility is performing overall.
This year’s SNF Cost Comparison and Industry Trends Report takes a closer look at a year full of challenges, but also looks to the future with a sense of optimism.
This year’s prevailing trends
While it’s easy to get bogged down in the here and now, focus on how to respond to current SNF trends to help position your organization for the future. Right now, there are five trends impacting the industry:
- Cash burn has caused great concern — The current liquidity crisis is unprecedented, in part due to a decrease in elective procedures and hospital discharges.
- Occupancy is way, way down — It’s difficult to know when levels will recover to pre-pandemic levels, but some speculation suggests it may take up to 18 months.
- Operators can’t afford a PDPM misstep — The Patient-Driven Payment Model (PDPM) can’t be overlooked in the current environment.
- Telehealth isn’t going anywhere — The potential for telehealth has the attention of SNF operators, but enthusiasm is tempered by the complexity involved in effectively utilizing the opportunity.
- SNF M&A activity continues to flourish — Though merger and acquisition transactions have slowed, some investors still view SNFs as a viable investment option.
Our report discusses these trends and more in greater detail to help you understand the fundamentals of SNF finance and operations. As a professional services firm serving 1,500+ SNFs, we strive to equip our clients and the industry at large with fresh insights and ideas. For this year’s report, the ultimate goal is to help you weather the current storm.
Download our 35th annual SNF Cost Comparison and Industry Trends Report
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