Occupancy Rates Down, Cash-On-Hand Increases In SNFs
Posted on Tuesday, September 1, 2015 3:00 PM
According to a new report, there has been a decline in occupancy rates and an increase in days cash-on-hand in skilled nursing facilities (SNFs). SNFs saw a decrease in occupancy rates from 91.9% in 2010 to 90.4% in 2014. The decrease may be traced to shorter stays due to the increase in use of SNF alternatives, such as home and community services and changes in hospital referral patterns.
Moreover, 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 modest boost, which may be the result of increases in operating margins. The report found total earnings before interest, taxes, depreciation, and amortization increased from 6.2% to 6.4% between 2010 and 2014.
The report detailed the forces driving trends in the SNF industry, including accountable care organizations, bundled payments, and the shift from volume-based to value-based reimbursement.
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