There will be fewer independent post-acute providers as they struggle to raise the additional capital to comply with evolving regulatory regimes, care coordination and new payment systems, according to a new report from Welltower.
Occupancy at SNFs across the United States reached a record low of 81.7% in the second quarter of 2018, down from 83.1% over the same period last year as policy changes take hold and competition ramps up.
Private equity firms increasingly see post-acute providers as lucrative investments, buying skilled-nursing and senior-housing facilities from REITs that are willing to sell because of the sectors' financial struggles.
The CMS will give post-acute care providers more than $900 million in collective raises next year, including a 2.4% increase for skilled-nursing facilities and 1.3% for inpatient rehab centers.
ProMedica bought the bankrupt post-acute provider HCR ManorCare for about $1.4 billion through a complex deal that involves changing HCR's for-profit facilities into not-for-profit assets.
The CMS is considering paying home health agencies for remote patient monitoring. In all, the CMS is proposing a 2.1% or $400 million increase in Medicare payments for home health agencies. That's a change from the 0.4% or $80 million cut from last year.
Sanford Health will merge with Good Samaritan Society, mirroring other health systems that have made a play for long-term care providers to try to better coordinate care once patients leave the hospital.
Signature HealthCare agreed to pay more than $30 million to settle allegations that the skilled-nursing provider submitted false claims to Medicare for unnecessary rehabilitation services.
Rehabilitation hospitals say a proposed change to how the CMS will reimburse them for care could lead to underpayment because the new system pulls patient data from an untested source.
The CMS is proposing more than $1 billion in collective raises for post-acute care providers next year, including a 2.4% increase for skilled nursing facilities and 1.8% for hospices.
Chinese acquisitions in the U.S. senior-living industry dropped off after the first quarter of 2017 and haven't bounced back, according to an analysis by the firm Real Capital Analytics.
Republican lawmakers want to determine if the CMS is doing enough to prevent patient abuse at skilled-nursing facilities after a series of troubling reports.