The rising cost of construction and tighter competition make it imperative for skilled nursing developers to look more closely at their next investment. Here are five things SNF operators should consider before renovating or building a facility.
The rising cost of construction and tighter competition make it imperative for skilled nursing developers to look closely at their next investment. If a renovation or expansion could be in your future, the first step in planning for a renovation or expansion to your skilled nursing facility (SNF) is a thorough analysis of the surrounding senior living market in relation to your business model.
Balancing market trends and business needs
In a recent article with Skilled Nursing News, Plante Moran Living Forward Vice President Jamie Timoteo provides advice on five points SNF operators should consider before building or renovating their facility:
- Trends in penetration rates.
It's important to look at the penetration over time to see where the trend is headed before investing.
- Relationships with local hospitals.
Establishing relationships with local hospitals prior to taking on a project is imperative to guaranteeing occupancy.
- Averages in expected length of stay.
Facilities with high turnaround, like short-term rehab, will need efficient operations in place prior to opening to sustain occupancy.
- Alignment of core business and new operations.
Your organization's focus is a key element to consider before investing in new capital projects.
- Due diligence prior to breaking ground.
Take time to compare your mission, financial realities, and market trends before making a "go" or "no go" decision.
Get the whole story
Learn more about what SNF operators should consider before renovating or building by reading the full article at skillednursingnews.com >>
If you'd like help thinking through your market's trends in relation to your business model and strategic plan, let's have a conversation today.