Skilled nursing occupancy begins year with ‘positive momentum’

Skilled nursing occupancy increased 49 basis points from December to January, to end the month at 81%, according to the National Investment Center for Seniors Housing & Care’s most recent skilled nursing monthly report, released Thursday. 

“There was positive momentum in occupancy throughout 2022, and it is up 643 basis points since the low point (74.5%) reached in January 2021,” NIC Senior Principal Bill Kauffman wrote in a blog post.

Kauffman noted that although skilled nursing occupancy was relatively flat from May through September 2022, it increases 274 basis points from January 2022 to January 2023.

The numbers show that demand is growing for skilled nursing, but staffing challenges, wage growth and persistent general inflation pressures still are burdensome for operators, according to the report. 

According to the data, Medicaid revenue mix was unchanged from December to January at 49.8%; in January 2022, Medicaid revenue mix was 91 basis points lower than January 2023, at 48.8%. 

“Medicaid reimbursement has increased more than usual, as many states embraced measures to increase reimbursement related to the number of COVID-19 cases throughout the pandemic, but many states have continued to increase reimbursement,” Kauffman wrote.

Medicare revenue per patient day dipped slightly from December 2022 to end in January at $592. The figure was $594 in December, which was its highest level since June 2020, when the federal government began implementing many initiatives to aid operators for COVID-19 cases.

Managed Medicare revenue mix increased 85 basis points from December to end January at 11.2%. This amount is up 254 basis points from the pandemic of 8.7% low set in May 2020. Managed Medicare revenue per patient day increased from $467 in December to $468 in January; it is down $117 (20%) from a year ago.

“It continues to create pressure on operators’ revenue as managed Medicare enrollment continues to expand its reach and coverage around the country. However, some operators see an opportunity to capture patient volume with the growth of managed care,” Kauffman wrote. “The persistent decline in managed Medicare revenue per patient day continues to result in an expanded reimbursement differential between Medicare fee-for-service and managed Medicare.”