August 30, 2015, Emily Mongan, McKnights - A decline in occupancy rates and an increase in days cash-on-hand are among the findings included in CliftonLarsonAllen's sweeping Skilled Nursing Facility Cost Comparison Report. Skilled nursing facilities saw a decrease in occupancy rates from 91.9% in 2010 to 90.4% in 2014, according to the report, released last Thursday.
This decrease could be traced to shorter stays, use of SNF alternatives like home and community services and changes in hospital referral patterns, the report's authors wrote.
Days cash-on-hand, which refers to a facility's liquidity, increased from 36.2 days in 2010 to 45.7 days in 2014, a modest boost that could be the result of increases in operating margins. Between 2010 and 2014, total earnings before interest, taxes, depreciation, and amortization increased from 6.2% to 6.4%, the report found.
The report also detailed the forces driving trends in the SNF industry, such as accountable care organizations, bundled payments and the shift from volume-based to value-based reimbursement. CliftonLarsonAllen also assembled a "to-do" list for healthcare organizations, including embracing evidence-based medicine, determining IT needs and creating a culture change with an emphasis on patient choice.
Click here for more on the 30th Annual Skilled Nursing Facility Cost Comparison Report.