Reinvesting Your Resources in Patient Care

cut expenses

The Alliance for Quality Nursing Home Care recently released a report that shared some sobering statistics about the financial health of the country’s skilled nursing facilities. While a majority of the factors contributing to this challenge are beyond the control of the SNFs, the good news is that there are some things you can control that can make a significant and positive impact on your organization.

With skilled nursing’s profit margins growing ever slimmer, it’s increasingly important for administrators to look for ways to achieve cost savings and direct resources to where they matter most—rather than to cover litigation expenses.

The Alliance for Quality Nursing Home Care recently released a report that shared some sobering statistics about the financial health of the country’s skilled nursing facilities (SNFs):

One-third of SNFs surveyed reported either a zero total income margin, or a net loss, for the years 2010 to 2012. SNFs’ median net income margin at the end of 2012 stood at 0.99%, about half of what it was in 2010.

Importantly, the 2% Medicare reimbursement reduction due to take effect in 2013—a result of government sequestration—is not yet reflected in these statistics. Put simply, the negative impact on margins is going to continue for some time.

While a majority of the factors contributing to this challenge are beyond the control of skilled nursing facilities and their administrators, the good news is that there are some things that SNF administrators can control that can make a significant and positive impact on their organizations.

One of the most considerable expenses that many SNFs face is the handling of claims and litigation—a substantial and unavoidable vulnerability in long-term care. That’s why the ability to dramatically reduce spending in this area—thereby keeping resources invested where they matter most, in patient care, is a reality that SNF administrators should strive to achieve.

SNF administrators should take advantage of businesses whose specialty is achieving cost-effective medical-legal solutions that can significantly reduce spending on litigation and shorten the lifecycle (and cost) of claims. This can enable SNFs to redirect their savings back into staffing and quality initiatives that directly serve residents and support the mission of caregiving.

Fortunately, there is a way to positively impact how healthcare is delivered while controlling expenses on the litigation front, allowing for greater reinvestment in patient care. Learn more by watching the below video, or by getting in touch.

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