The Patient-Drive Payment Model, with its rewards for higher-acuity patients and group therapy, is expected to be a boon for healthcare real estate company Invesque, executives said Thursday.

During a second quarter earnings conference call Thursday, Chairman and Chief Executive Officer Scott White said the 100-plus property company believes PDPM will help “drive profitability for sophisticated operators that are focused on high-acuity patients.” 

“PDPM will shift payment incentives away from the volume of therapy provided and more toward patient acuity,” White said. “Skilled nursing providers, particularly those in our portfolio who focus on group therapy, will be able to capitalize on both cost savings and improved patient outcomes.”

“We believe the increased CMS market rates, the increased Medicaid funding in Illinois and the implementation of PDPM provide for a favorable backdrop for increased profitability over the next few years.”

He touted Illinois’ $240 million increase in Medicaid funding to skilled nursing facilities, along with a federal 2.4% increase in Medicare payments ($851 million) to SNFs in fiscal year 2020.  White said the “market rate update will be an important step in improving the environment for SNF operators.” 

“Skilled nursing facilities remain the lowest-cost setting of care for a large subset of patients, and the Final Rule strengthens the Medicare program by better aligning payment rates with the cost of providing care,” White said. 

Invesque is a healthcare real estate investment company based in Carmel, IN. The company develops skilled nursing and other senior-care facilities and has more than 100 properties in its portfolio.