Financial analysis and considerations for transforming long-term care with single-resident rooms
Economic considerations are an important factor in converting to single-resident rooms in nursing homes. Robert Long estimates new costs and summarize other transition considerations via Health Management Associates.
Michigan has 430 licensed skilled nursing facilities (SNFs) with a total bed capacity of 45,621. SNFs in Michigan provide short-term rehabilitation and recovery services as well as long-term custodial and chronic care. Ninety-five percent of facilities offer some single-resident rooms, but 9% of available beds exist as three- or four-bed wards. Fifty-five facilities reported having at least one four-person room.There is one licensure category for skilled nursing in Michigan, but there are two designations of SNFs for reimbursement purposes. Class I facilities are freestanding. Class III facilities may be freestanding and owned by a county government or may be physically attached to a hospital and considered a hospital long-term care unit (HLTCU). Medicaid payment limits for the two classes are established separately by aggregating cost and utilization data. Class I and Class III facilities also have different Medicaid reimbursement mechanisms for capital costs.
