Panel: SNF care will become more of a value proposition
Long-term care operators will face additional pressure to improve, said William Shrank, Ph.D., chief scientific officer for CVS/Caremark, on Monday.
"Operators will have to demonstrate the value they deliver," Shrank noted. His comments came at the 2014 National Investment Center for the Seniors Housing and Care Industry Regional Conference in Boca Raton, FL.
"It's increasingly critical for operators to look at outcomes," added Kenneth Botsford, M.D., chief medical officer for naviHealth Inc.
All panelists agreed that coming changes would be especially difficult for smaller operators — who are likely to have fewer resources than larger chains.
Shrank added that the Centers for Medicare & Medicaid Services and larger insurers already are experimenting with new value-driven payment strategies, and more may be on the way.
Peter Martin, managing director for JMP Securities, predicted that many nursing homes that fail to adapt would likely be closed rather than purchased.
Panelists agreed that managed care penetration would continue to grow in the years to come, despite variances across states.
"States love managed care because it's more predictable,” said Dan Mendelson, CEO of Avalere Health LLC and the session's moderator.
NIC President Robert G. Kramer noted this is a time of dramatic change in the skilled care sector. He cited four catalysts: healthcare reform, consumer preferences and demands, innovation and technology, and access/affordability. The conference continues through today.