Managed Medicare Rates Decreased 5.6% Year-over-Year
National Investment Center (NIC) for Seniors Housing and Care released its 1Q2016 NIC Skilled Nursing Data Report, which provides operators and investors with time-series data through March 31, 2016, on key metrics such as occupancy and revenue per patient day by payor source. The newest report highlights an increase in occupancy and also the continued impact that Medicare Advantage plans are having on revenue.
“This report shows an increase in occupancy from the December 2015 low, which could be attributed to an increase in volume due to the flu season and other factors attributable to occupancy in the winter months, such as an increase in slips and falls and elective surgeries. We will have to see how the next quarter plays out as occupancy seems to have leveled off in March 2016,” said Bill Kauffman, senior principal at NIC. “The report also showed the continued pressure from Medicare Advantage plans as rates decreased 1.2% quarter-over-quarter.”
The 1Q2016 report provides monthly data collected by NIC from October 2011 through March 2016 on select metrics, including: occupancy, quality mix, skilled mix, patient day mix, and revenue per patient day by payor source. During this time period:
- Occupancy increased in January and February of 2016 but leveled off in March to end at 83.4%. Occupancy is down 108 basis points from October 2011 as the decline in length of stay continues to be a challenge.
- Skilled mix and quality mix increased to 26% and 35.5%, respectively, in the first quarter 2016 as seasonality continued to play a role at this time of year. However, the effect of seasonality was not as strong this year compared to the last couple of years, which could be attributed to the late flu season.
- Managed Care (Managed Medicare) rates decreased 1.2% quarter-over-quarter and decreased 5.6% year-over-year.
- Medicaid rates were flat quarter-over-quarter but increased .44% month-over-month and .72% year-over-year.
The NIC Skilled Nursing Data Report is available at NIC’s website at the link below. There is no charge for this report. https://info.nic.org/skilled_data_report_pr
Currently the report provides aggregate data at the national level from a sampling of skilled nursing operators with multiple properties in the United States. NIC will grow its base of participating operators in order to provide data at localized levels in the future. Operators who are interested in participating can complete a participation form using the link below. NIC maintains strict confidentiality of all data it receives. https://www.nic.org/analytics/nic-initiatives/skilled-nursing-data-initiative