The ongoing coronavirus pandemic has the “skilled nursing industry in a challenging state right now,” one expert noted after new data revealed occupancy at SNFs dropped to 78.9% by the end of April.
In March, SNF occupancy had dropped to 83.4%, which were the lowest levels since 2012.
“Some operators that were operating at relatively higher occupancies are able to maybe navigate [through the crisis] better than some of those [who] were already operating at lower occupancies relative to the industry before the pandemic,” Bill Kauffman, senior principal at the National Investment Center for Senior Housing & Care, told McKnight’s.
“That said, regardless, even if you were one of those operators that were operating at a higher level occupancy, you’re still challenged right now,” he added.
Skilled nursing occupancy had reached 84.7% two months earlier, and 84.4% during April of last year, according to NIC. Kauffman noted that April is typically down month for occupancy after an uptick during the flow season, but the industry hasn’t “seen anything like this in recent memory.”
“Some of that was due, of course, to the impact of elective surgery suspension around the country in the month of April, along with many other state and local restrictions that took place and really had a major toll on patient admissions,” Kauffman said.
The findings also revealed that Medicaid revenue patient per day increased by $10.53, or 4.9%, when compared to April 2019. Even with increased reimbursements, operators must figure out how they’re going to balance occupancy challenges, additional costs for labor, personal protective equipment and testing, all while trying to remain profitable.
“That’s what operators have to think about,” Kauffman said. “That’s really a priority.”
Kauffman added that it’s still too early to tell exactly how the pandemic will play out but that it will continue to challenge operators for a while. He did give operators some hope that current challenges won’t last forever, noting that even if elective surgeries are on hold, patients with multiple comorbidities are eventually going to need nursing home care.
“You can potentially hold off on that for a while, but certain segments of the [aging] population will require some care at a [skilled nursing] property,” he said.
