Occupancy, revenue optimization, staffing and expense efficiency should be fundamental areas of focus for long-term care operators, experts at the CliftonLarsonAllen accounting and consulting firm said during a webinar Wednesday. Providers must look for opportunities that will help them navigate challenging times, they advised.

“Healthcare was already a challenging industry to be in before COVID happened, and once COVID happened and we’re dealing with the pandemic, it really only increased the complexity of the world we operate in,” said Deb Emerson, a principal in the healthcare division at CLA.

From her marketing point of view, she said, organizations should look at where they are spending their dollars and how their facilities compare with those in their peer groups.

“You need to look at all of the information in total and figure out what are those opportunities for you,” Emerson said.

From an occupancy standpoint, she said, try to determine when occupancy is going to level out. Is it possible to get back to pre-pandemic levels, and how long will it take? Answers to those questions will affect decisions on payer mix and staffing.

From a strategic marketing perspective, Emerson said, take a look at where referrals come from.

“We have the ability to look at a particular hospital as a referring source and say, ‘Where in your markets is that hospital sending patients? Where are they discharging patients to?’ ” she said. “So what other peer groups is the hospital sending patients to?”

From there, Emerson said, determine whether your organization derives enough revenue from the types of residents and patients it accepts.  

In looking to optimize revenue, examine whether what the organization offers matches the needs of residents served, she advised. Also, consider whether labor challenges can be managed without using outside staff and whether the Patient Driven Payment Model parity adjustment will affect the contribution margin, Emerson said.

Providers should focus on capturing all of the quality care services provided to residents in their facilities and review the details of rate calculations for both Medicare and Medicaid billings, according to the experts.

“Direct care staffing is just the most critical function at your facility,” said Data Analyst Manager Seth Wilson, CPA, MST. Here, too, he said, it is important to benchmark your organization against its peers and competitors.

Recruiting and maintaining staff members continue to be difficult, Wilson noted, so more skilled nursing facilities are finding themselves needing to use contract labor. “Those that had been using it are using it more,” he said.

Staffing agencies are costly, so it might be more cost effective to increase wages (10% to 20% higher, Wilson said) to recruit and retain staff at a facility. The net expense might be the same, he said, but the move could put an operator in a better position overall.

For more coverage of the webinar, visit McKnight’s Long-Term Care News.