A CMS Study Not “Common Sense” Checked
Last week the Centers for Medicare and Medicaid Services released a study comparing Medicare beneficiaries in nursing homes (about 1.4 million of them) to those Medicare beneficiaries in the general community at large (60.6 million) between March and December of 2020. They were trying to see if there was a difference between the two groups in terms of becoming infected with COVID-19, hospitalized as a result, and then death from it. One article about the story was titled “Medicare nursing home residents more likely to be diagnosed, hospitalized and die from COVID-19 than beneficiaries not in facilities.” Thank you, Captain Obvious. And surprisingly, this did not come from The New York... Read More »
The Consistency of Skilled Nursing Facility Expense Ratios
Just like the average cap rate, the average expense ratio in the skilled nursing market for facilities sold has been very consistent. For the past five years, it has had a low of 88.2% and a high of 88.7%, for a very small 50 basis point spread, according to the 2017 Senior Care Acquisition Report. It was 88.5% in 2015 and 88.6% in 2016, just to show the consistency. Obviously, this excludes expenses such as interest, depreciation, amortization, taxes and rent. When these are all included, it is clear to see why the skilled nursing industry complains to their elected representatives as well as CMS that it is difficult to make money. And future cuts to Medicaid (as promised by both the... Read More »Changes to the 5-star rating system?
David Friend is a Managing Director and CTO at BDO Center for Healthcare Excellence & Innovation. He has more than 35 years of global healthcare experience and provides advice on mergers and acquisitions, strategy, clinical integration, physician engagement, and enhancing shareholder value. He received his BA from Brandeis University, his MBA from The Wharton School of The University of Pennsylvania and his PhD from The University of Connecticut. Steve Monroe I’m lucky to have here with us David Friend. He’s a managing director and chief transformational officer for BDO. David, we all know, and you’re obviously on top of all this, that the skilled nursing facilities... Read More »Schedule a demo
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