“Operators Bearish on Future of Standalone Skilled Nursing Facilities,” by Alex Spanko, Skilled Nursing News

“Investment banking and advisory firm Lancaster Pollard on Tuesday released the results of its expansive senior housing and care survey, which collected the opinions of executives at facilities across the United States. And the numbers were not upbeat for skilled nursing providers. Of the 4,000 leaders who answered Lancaster Pollard’s call 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.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

Medicaid supercharged the standalone SNF business starting in the 1960s, but clamped down with regs and low reimbursement until quality deteriorated. The free market responded by offering assisted living as a preferable and successful, but private-pay alternative. Now Medicaid is moving increasingly into ALFs. Time will tell if they follow the same primrose path as nursing homes.

Operators Bearish on Future of Standalone Skilled Nursing Facilities

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