While skilled nursing leaders seemingly have an appetite for risk, they’re not looking to sit at the dinner table alone, according to a new poll.
About 86% of SNF leaders are at least somewhat likely to enter into risk-based payment models, with 43% already doing so. Almost two-thirds (63%), however, believe that skilled nursing providers can no longer continue as independent players. The numbers were released Wednesday by the Greystone real estate lending and investment firm, which informally polled 20 CEOs, CFOs and other leadership types.
“This research tells us that the SNF industry is currently in flux, and we know that there are a number of market pressures impacting risk appetites and finance needs,” Steve Rosenberg, CEO of Greystone, told McKnight’s.
One surprise for Rosenberg: About 36% of leaders said they’d be willing to purchase an underperforming facility with the intent to close it to protect their own existing properties.
“This speaks to the importance to protect one’s existing assets reputationally. The focus on successful outcomes — as PDPM [the Patient Drive Payment Model] and other changes approach — will be the most critical aspect of an operating strategy.”
Managed care continues to prey on leaders’ minds, with about 54% saying they believe such plans will come to control both Medicare and Medicaid benefits for dual-eligible SNF patients within five years.
Rosenberg believes the need to provide a full continuum of care to residents is driving desires to form partnerships in skilled care. Only 27% of leaders believe SNFs can stay solo, while said they 18% felt that integration with others is a “must.” The other 55% believe integration is “likely.”
“Addressing the entire continuum of care is a growing necessity for providers,” he said. “This enables residents to age in place and move from one type of service to another within one environment. Serving a larger range of needs across the post-acute care spectrum will become more critical as the industry faces increasing cost pressures.”
