“Skilled Nursing Occupancy to Keep Falling in 2018,” by Alex Spanko, Skilled Nursing News
“Skilled nursing occupancy rates, already sitting at record lows, will continue to plummet in 2018 according to the most recent projections from Marcus & Millichap. The commercial real estate brokerage predicts that skilled nursing occupancy will fall to 85.3%, a dip of 80 basis points and a new low for the decade. ‘The skilled nursing segment is undergoing many changes, and health care reform specifically related to Medicare and Medicaid reimbursements is causing some facilities to shift focus from long-stay custodial-care residents to focus on short-term, post-acute care patients to improve profit margins,’ the Calabasas, Calif.-based Marcus & Millichap observed in its first half 2018 analysis.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform): Skilled nursing facilities were never the appropriate venue for long-term custodial care, but it was Medicaid that created that systematic institutional bias. Government interventions to change the system may create more problems than they solve. Until consumers can vote with their own or their insurers’ money for the care they prefer, the system will remain driven by perverse crony-capitalist incentives.