Skip to Content

Five big trends affecting all skilled nursing facilities

March 6, 2020 Article 5 min read
Authors:
Patrick McCormick
Plante Moran’s annual “Make the Mark” benchmarking report suggests that, despite increased competition and wage pressure in the skilled nursing sector, there’s still opportunity ahead. Pat McCormick discusses the top five trends in McKnight’s.

trends affecting all skilled nursing facilitiesSkilled nursing facilities (SNFs) in the United States continue to face daunting challenges. The average SNF is only able to break even, reflecting increased competition, upward wage pressure in a tight labor market, and the prevalence of low-paying Medicaid patients. In many regions, operating margins are negative, suggesting that more facilities will soon be forced to close or raise rates.

These are some of the main findings in our third annual “Make the Mark” benchmarking report that allows around 15,000 Medicare-certified SNFs to benchmark their key operating, revenue, and expense metrics. This year’s report is our most robust yet, benefiting from a richer data set that enables it to form a more detailed profile of SNF facilities across the country.

Related Thinking

Hospital hallway
February 18, 2020

Senior living investors should avoid these temptations and pitfalls

Article 4 min read
Senior care worker walking with an elderly senior citizen nearby a lake shore.
August 21, 2023

The 6 Building Blocks of Senior Living Financial Architecture

White Paper 15 min read
Modern senior living apartment building at dusk
July 28, 2023

2023 Senior Living Industry Pulse

Article 6 min read