Nursing home occupancy showed its first year-over-year increase since January 2015, hitting 83.7% in the first quarter of 2019, the National Investment Center for Seniors Housing & Care said in June.
The upward trend likely relates to more than flu cases and other seasonal factors, said Bill Kauffman, senior principal at NIC.
“The real key here is not just quarter-to-quarter but the year over year,” he told McKnight’s. The increase is a “trend that is significant, especially in light of occupancy pressures,” he added. “Occupancy has been steady since spring of last year. That’s a good sign for stabilization.”
Additionally, those entering nursing homes now are in their 80s, and not baby boomers. The latter group is expected to further boost skilled nursing’s fortunes.
However, facilities continue to struggle with case mix and should pay attention to their managed Medicare mix, Kauffman said.
“Managed Medicare, aka Medicare Advantage plans, continue to be a growing part of the pie in terms of the revenue mix,” he explained.
