State-by-state comparison metrics are now available for operators to compare and evaluate performance.
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.
State-by-state financial and operational key performance indicators have also been developed, which allow SNF operators and investors to benchmark their facility against the median metrics of the state in which they operate. The metrics, accessible through an online dashboard, serve as a complement to the annual report.
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. Combined with the state-by-state metrics, SNFs can gain a better understanding of benchmarks that are helpful in creating performance expectations, a stronger handle on their competitive landscape, and relevant knowledge about their local market conditions.
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 and online dashboard, the ultimate goal is to help you weather the current storm.
Access the 35th annual SNF Cost Comparison Report and state metrics
Access both the SNF Cost Comparison and Industry Trends Report and state metrics online dashboard by filling out the short form below. After the form is submitted, you will receive an email with links to access the content.