Staffing issues are a part of doing business in long-term care these days. Cambridge Realty Capital Managing Director Anthony Marino advises providers to avoid the “elephant in the room” and to be direct with lenders about staffing levels in their communities.
Ninety-eight percent of nursing homes have reported issues hiring new staff since the pandemic, according to NurseJournal.
“A seasoned lender with industry-specific experience … can work with owner/operators to identify and understand their facility-specific staffing expense numbers, what should be considered normalized labor expenses and how to anticipate future needs,” Marino wrote in an online post.
Additionally, he said, borrowers should be prepared to be direct with lenders about:
- Staffing costs from the pandemic, including post-pandemic differences.
- Effects of using nursing agencies, if applicable.
- How the operator historically has maneuvered through staffing shortages.
- Innovative ways the provider has tried to recruit and retain nurses, such as same-day pay, retention bonuses, partnering with nursing schools and hiring immigrants.
- How state staffing mandates, if applicable, have affected the organization and how they are affecting or will affect staffing-related expenses.
Being direct with lenders could influence funding eligibility and expedite closing times, according to Marino. Additionally, he said, a frank conversation could help identify areas for improvement.
“Addressing staffing issues, both current as well as what may arise in the future, can boost an operator’s chance of financial success in the long term,” Marino said.
