Product Attributes
- The traditional “geriatric” model nursing center is not sustainable
- The SNF Sector represents a low margin business
- The SNF Sector is increasingly competing with assisted living product and other home and community based service providers
- The SNF Sector is replete with aging property interests requiring capital reinvestment
Practice Attributes
- The SNF Sector has historically been misdirected by adopting payer driven business strategies
- The SNF Sector exhibits limited progressiveness in leveraging technology
- More formalized and intensive marketing efforts are required to sustain and improve census and promote quality mix of residents.
- Managed care associations require more aggressive and targeted collaboration coupled with demonstrating performance expectations
- Limited proficiencies among direct caregivers are prevalent with respect to combining clinical and financial management capabilities
- There exists inadequate financial and clinical management systems integration in promoting combined skill sets
- Emerging technologies are proving essential to promoting progressive practice delivery
Market Considerations
- Freestanding Community Providers are threatened by the economies and progressiveness represented by emerging competition.
- The SNF Sector has been obstructed by prevalent fragmentation and competition within the industry
- Industry data is scarce and disparate as available to providers for benchmarking and lenders/investors for underwriting and credit monitoring
- SNF Providers experience heightened risk factors associated with resident claims and other contingent liabilities stemming from resident care activities
Regulatory Influence
- Government programs offer no incentive and inadequate capital reimbursement for reinvesting in asset interests as well as advanced operating systems
- There exists high disparity and growing complexities in principles of reimbursement in the SNF Sector where providers experience economic dependency on inadequate Government programs – principally Medicaid
- Government payer programs are actively migrating away from the fee-for-service model where revenue realization is increasingly driven by demonstrated cost efficiencies and outcomes achieved