Occupancy at skilled nursing facilities has continued to stabilize over the last year, despite dipping slightly in the second quarter, new data from the National Investment Center for Seniors Housing & Care (NIC) reveals.
NIC reported that occupancy at U.S. facilities was 83.3% in the second quarter of 2019 — a 0.5% decrease when compared to the first quarter. It was, however, a 0.5% increase when compared to a year earlier.
“The slight decrease from the first quarter likely does not foreshadow a broader trend, because seasonal flu-related admissions that typically spike in late fall through winter trail off later in the year,” said Bill Kaufmann, senior principal at NIC.
Average Medicaid revenue per patient day (RPPD) was $215 for the second quarter — a 2.7% increase from last year when it was $209. NIC experts touted Medicaid as the “fastest growing payer in the (SNF) facility sector by revenue patient per day” and said that growth was also evident in both urban and rural areas. Medicaid RRPD ended the second quarter at $219 in urban areas and $198 in rural areas.
Revenue from Medicare Advantage plans dipped significantly in the second quarter, findings revealed. It was down 2.3% in urban areas, yet remained the same at 5.2% in rural areas, according to NIC.
“It’s too early to say if the noticeable decline in skilled nursing revenue from Medicare Advantage will continue,” said NIC Chief Economist Beth Mace.
“On the one hand, Medicare Advantage is becoming an increasingly prominent player. However, like all payers, Medicare Advantage isn’t immune to constant cost containment pressure,” she explained. “The decline in Medicare Advantage revenue this quarter might be attributed to private plans bypassing skilled nursing due to its expense, declining patient length of stay, or lower reimbursement rates. We will need data from subsequent NIC reports to help us better pinpoint contributing factors.”
