A drop in occupancy rates and an increase in days cash-on-hand are among the findings in CliftonLarsonAllen’s 30th Annual Skilled Nursing Facility Cost Comparison Report.
Skilled nursing facilities saw a decrease in occupancy rates, from 91.9% in 2010 to 90.4% in 2014, according to the report, which was released in late August. This could be due to shorter stays, use of skilled nursing alternatives such as home and community services and changes in hospital referral patterns, the report’s authors wrote.
Days cash-on-hand, which refers to a facility’s liquidity, increased from 36.2 days in 2010 to 45.7 days in 2014, a boost that could be the result of increases in operating margins. Between 2010 and 2014, total earnings before interest, taxes, depreciation and amortization increased from 6.2% to 6.4%, the report found.
CliftonLarsonAllen also assembled a “to do” list for healthcare organizations, including embracing evidence-based medicine, determining IT needs and creating a culture change with an emphasis on patient choice.
From the October 01, 2015 Issue of McKnight's Long-Term Care News
