With all the talk of impending acquisitions lately, it’s hard not to think of skilled nursing facilities as commodities to be bandied about for the right price — or shuttered if they don’t produce enough “value.”
But providers shouldn’t see themselves in that light, given the thousands of medically complex patients who depend on them.The best protection for operators who don’t want to be scavenged for parts and raw materials? Get some skin in the game.
That was the message across the board at the Synergy Summit, where executive leaders from some of the nation’s largest and most innovative LTC providers gathered in June.
During the final session, Ensign Services Vice President Jess Dalton hosted some of the very people putting the squeeze on long-term care: payer executives. But instead of blaming them for increasing pressures on a struggling industry, he positioned creative payer organizations as a possible lifeline.
“If you continue to go down the trail or the track of simply being a commodity service in the healthcare sector, that may be a surefire way to see a quick end to what you’re trying to achieve,” Dalton said. “The answer to getting beyond a commodity within the healthcare industry is of course to own and to take on risk and … to own those lives.”
It can be hard to envision how alignments in which you share responsibilities with other provider types will pay off in the long run.
After all, alternative payment models haven’t been helpful to most skilled nursing providers. Hospitals notoriously save money by reducing SNF referrals in favor of home health or requiring shorter stays. Still, partners who have shared values are proving creativity can pay off. But just as providers shouldn’t be seen as commodities, patients won’t want to be seen as “lives” providers can somehow own.
In the struggle for limited dollars, don’t lose sight of who you’re looking to protect. Is it your bottom line, or is it your patients and the communities that depend on your long-term viability? The answer must be “both.” So when you’re ready to dive into risk-sharing, make sure it’s your own skin you’re risking.
Losing sight of individual patient lives under pressure from a new partner can only lead to dissatisfaction and reputational damage — factors that will put you squarely back at risk of becoming an entity to be bought and sold.
From the July/August 2021 Issue of McKnight's Long-Term Care News
