We recently polled owners, administrators and chief financial offers of skilled nursing facilities (SNF) in Maryland to learn more about their top concerns. The results of the survey confirmed what our clients in the industry have been telling us. Let's take a look at the top three concerns.
What’s Keeping SNF Executives Up at Night?
1. Changes in payment and reimbursement systems
There is no surprise about the #1 concern among decision-makers at Maryland’s skilled nursing facilities. Two-thirds of nursing home owners, administrators and CFOs point to changes in the payment and reimbursement systems as their top concern.
We are in the midst of a transition from an old payment system to a new one. The changes are complicated and the new reimbursement system is more closely tied to quality of care. Changes in the payment and reimbursement systems have impacted and will continue to impact the bottom line for many skilled nursing facilities.
2. Five-Star Quality Rating System
This one is not a big surprise either. Nearly half of owners, administrators and CFOs say the CMS’s Five-Star Quality Rating System is one of their top three concerns. They know consumers rely heavily on the rating system to research and compare skilled nursing facilities. A good rating is essential as competition for business increases. And, as noted above, the new payment and reimbursement system is tied to quality of care.
3. Employee retention, controlling costs and regulatory requirements
A three-way tie points to the sheer number of issues SNF executives worry about. More than 40% of SNF executives say that controlling costs, finding and retaining qualified employees, and the level of outside regulatory requirements — such as standards of care, documentation requirements and electronic medical records — are among their top concerns. Staying on top of these issues, which often seem like moving targets, will certainly continue to be challenges for SNFs.
With all the changes and challenges in the industry, skilled nursing facility executives sure have their work cut out for them. Our recommendations are to do your best to stay on top of the changes and to keep your focus on quality of patient care, with the mindset that all else will follow. We also recommend that you work with a CPA who can help you understand how your top concerns impact your skilled nursing facility’s bottom line.
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