Operators Bearish On Future Of Standalone Skilled Nursing Facilities

February 13, 2018, Alex Spanko, Skilled Nursing News - Of the 4,000 leaders who answered a survey in December, 34% said they had a poor outlook for the economic viability of standalone SNFs over the next three years, with an additional 33% assessing the future as “fair” for the asset class.  Just 19% saw a good few years ahead, while the remaining 15% said the question didn’t apply to them

Just 19% of senior housing operators think the future for standalone skilled nursing facilities looks “good” over the coming three years — while a plurality see a “poor” path ahead..

That’s a stark contrast from the outlook for stand-alone assisted living facilities — with 58% of respondents classifying the future as good — and continuing care retirement communities (CCRCs), which 55% of leaders thought would have a good three years to 2021.

For-profit providers accounted for 62% of responses, but the results closely mirror a recent poll of non-profits from Chicago-based specialty investment bank Ziegler — which revealed that pressures on skilled nursing and post-acute care ranked as the third most common worry among executives for 2018.

“Licensed care is our biggest area, increasing requirements with pressure on reimbursement and workforce issues — perfect storm,” one anonymous non-profit leader told Ziegler.

Among the respondents, 39% said they had fewer than 250 skilled nursing beds, with just 4% logging more than 3,000 and a full third saying they had none at all.  Top worries for the leaders included the ongoing workforce shortage, which 82% of respondents named, along with occupancy levels (51%), regulatory enforcement (42%), and Medicaid reimbursements (39%).