The future for a 40-year old skilled nursing facility is not rosy, as we have discussed recently, and with every passing year, it becomes bleaker. These facilities face new competition in the form of short-term rehab and transitional care facilities, which feature nearly all private rooms and take a majority of the Medicare patients. And with lengths of stay decreasing, reimbursement tightening and wages increasing, an older SNF has fewer options to remain profitable while still providing quality care.
There are potential solutions, however, which the experienced owner/operators of a skilled nursing facility in Gresham, Oregon (Portland MSA) are putting into practice. The 128-bed facility was built in 1960, with an addition in 1976, and featured a number of four-bed wards and semiprivate rooms. In order to stay competitive, the owners decided to renovate the facility and convert rooms to private and semiprivate units. Now, they are refinancing their debt with the help of a $12 million HUD loan originated by Joshua Rosen of Capital One.
The financing, which comes out to $93,750 per bed, also provided funds to invest in the facility’s infrastructure, improve the common areas and expand its therapy services. That should brighten its future prospects.
