Operators under healthcare real estate investment trust Invesque are seeing increases in reimbursements six months after the implementation of the Patient Driven Payment Model, executives touted Thursday.
“While it’s still early, our operators are telling us that the PDPM implementation has provided at least the minimum 2.4 percent payment increase that was budgeted for Medicaid patients,” Invesque Chairman and CEO Scott White said during a fourth-quarter earnings call. “In some cases, the improvement in reimbursements has been even more favorable.”
White acknowledged that the Carmel, IN-based REIT, which holds 124 properties and recorded $440 million of acquisitions for 2019, isn’t alone with such good fortune. Other SNF owners and operators have noted similar positive results, he noted.
“We remain cautiously optimistic about the ability for our sophisticated operators to thrive under the new payment model,” White said. “We believe that the transitional care assets in our portfolio are uniquely positioned for success under PDPM.”
He said the company expects its portfolio coverage ratios to increase over time as a result of PDPM and the further stabilization across its SNF portfolio.
“With that said, we note that coverages are assessed on a trailing basis and there will be a delay in assessing the full impact,” he said.
Invesque executives stated they’ve been in constant communication with their local operators regarding the coronavirus outbreak.
None of its communities had any confirmed or suspected cases of the virus as of Wednesday, according to Bryan Hickman, senior vice president of investments.
“Because we own a wide array of assists, covering really the whole healthcare spectrum, from lower-acuity seniors housing to high-acuity post-acute skilled nursing care, our operators are approaching this differently based upon the risk profile of the residents,” Hickman said.
“We are very aware of the potential risks associated with it. Our operators have been very proactive in terms of determining the best course of action to mitigate and minimize the risk of spread in the communities,” he added.
Some providers have limited visitor access, while others are requiring visitors to answer questions about their travel and health history before entering their facilities. They’ve also been working to ensure their facilities are equipped with enough supplies.
“At Invesque, we believe that it is vital for our operators to keep their staff, residents and family members aware of this fluid situation and to ensure their team is informed and following [Centers for Disease Control and Prevention] guidelines to reduce the possibility of infection,” White said.
One major healthcare real estate investment trust saw its stock take a steep tumble following an COVID-10 outbreak. Sabra Health Care REIT’s stock took a 14% hit Wednesday after one resident died and seven other positive tests were reported at its Seattle-area facility.