An Alarming Metric
Median Skilled Nursing Operating Margin Falls Below Zero
(Article by Alex Spanko / Oct 10, 2019, Skilled Nursing News)
New cost comparison data released for the 2018 Skilled Nursing Facility performance shows a grim picture. The SNF median Operating Margin has fallen below 0% for the first time in three decades. Skilled Nursing Facilities need to be proactive in change, fully understanding their financial strengths and weaknesses in order to remain financially viable in today’s healthcare climate.
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“After hovering at about 0 in 2017, the median figure dipped to -0.1% in 2018, consulting firm CLA announced in its 34th annual skilled nursing cost comparison report, released Thursday.
“This is an alarming metric for the industry, as this number reveals that roughly half of the SNFs in the country are not operating at a profitable level,” CLA’s Cory Rutledge, Matthew Wocken, and Seth Wilson wrote in their report. “Given the multi-year trend of declining industry margins, this calls into question the long-term financial viability of lower performing SNFs.”