Skilled nursing properties that are leased from real estate investment trusts are likely to have better quality measure ratings for long-stay residents compared with properties that are leased from entities that are not REITs, according to an analysis by Nareit.
The analysis of Centers for Medicare & Medicaid Services long-stay quality measure ratings found that skilled nursing providers leasing from REITs tended to have more 4- and 5-Star long-stay quality measure ratings and a smaller share of residents with negative quality outcomes related to the use of antipsychotic medication, caregivers’ leaving catheters in their bladders, or residents having one or more falls resulting in a major injury, needing increased help with activities of daily living, having a decreased ability to move independently, experiencing pressure ulcers or experiencing urinary tract infections.
According to the data for long-stay residents, REIT-owned properties had a higher share of 4- and 5-Star SNF providers than non-REIT-owned properties (65% compared with 58%) and a lower share of 1- and 2-Star SNFs (17% compared with 23%) in 2022.
In the September Skilled Nursing Facility Quality Reporting Program database from CMS, which Nareit used in its analysis, REIT-owned SNFs represented 11.5% of the 1,744 SNFs identified, Nareit said.
“For the remaining 88.5%, separate research by the National Investment Center for Seniors Housing & Care (NIC), shows that the majority (67.2%) of units in SNFs are housed in properties owned by private, for-profit entities,” according to the report.
Eighty-five percent of the REIT-owned facilities were for-profits, 11% were nonprofits and 4% were government facilities.
