{"id":3420,"date":"2021-12-22T15:08:29","date_gmt":"2021-12-22T15:08:29","guid":{"rendered":"https:\/\/www.ltccs.com\/?p=3420"},"modified":"2022-06-29T23:04:43","modified_gmt":"2022-06-29T23:04:43","slug":"long-term_care_industry_newsletter_q1_2022","status":"publish","type":"post","link":"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/","title":{"rendered":"The LTC Provider&#8217;s Playbook: Q1 2022 Edition"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Happy_New_Year\"><\/span><strong>Happy New Year<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We\u2019re looking forward to a productive 2022, helping our friends care for beloved people across the many communities we touch in the work we do. Together, we have exceptional opportunities ahead of us to make positive changes across our industry after this extended period of disruption.<\/span><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#Happy_New_Year\" >Happy New Year<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#Forecasting_2022_Outlooks_and_Outliers\" >Forecasting 2022: Outlooks and Outliers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#Acquisitions\" >Acquisitions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#Managed_Care\" >Managed Care<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#Case_Management\" >Case Management&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#Outsourcing\" >Outsourcing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#Final_Thoughts\" >Final Thoughts<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#More_Resources_from_LTCCS\" >More Resources from LTCCS<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#Articles\" >Articles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/ltcally.com\/articles\/long-term_care_industry_newsletter_q1_2022\/#Social_Media\" >Social Media<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">Over the last two decades in business, we\u2019ve learned that major changes can come quickly and out of the blue. These last two years reinforced that truth.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ve weathered a lot together and proven our resiliency. Let\u2019s reflect on our successes and enter this new year with deserved confidence.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Forecasting_2022_Outlooks_and_Outliers\"><\/span><span style=\"font-weight: 400;\"><b>Forecasting 2022: Outlooks and Outliers<\/b><br><b><\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Acquisitions\"><\/span><span style=\"font-weight: 400;\"><b>Acquisitions<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Expect the fluctuations to continue. With shake-ups across the industry\u2014from the largest names including Providence \/ Plum to small players building regional presences\u2014the industry remains subject to constant changes in ownership.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mergers and acquisitions <\/span><a href=\"https:\/\/skillednursingnews.com\/2021\/10\/ltc-deal-volume-down-slightly-in-q3-still-up-significantly-from-last-year\/\"><span style=\"font-weight: 400;\">remain strong<\/span><\/a><span style=\"font-weight: 400;\"> across the long-term care sector. In Q3 2021, 107 deals were completed, compared to 60 in Q3 of 2020. Mergers and acquisitions across the LTC sector represent the largest portion of total healthcare M&amp;A activity at 18% of the total healthcare M&amp;A spend. In addition, the value of LTC M&amp;A deals is becoming <\/span><a href=\"https:\/\/medicareadvocacy.org\/private-equity-companies-continue-buying-nursing-facilities\/\"><span style=\"font-weight: 400;\">progressively higher<\/span><\/a><span style=\"font-weight: 400;\">\u2014deals were valued 18% higher than the previous quarter. Private equity remains the highest acquirer due to the current low cost of debt.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">LTC Consulting Service\u2019s valuation and change of ownership services can assist facilities interested in growing or divesting during this time of increased market sector activity.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a market bullish for SNFs\u2014and the <\/span><a href=\"https:\/\/www.mcknights.com\/news\/price-per-nursing-home-bed-jumps-20-after-years-of-decline-survey\/\"><span style=\"font-weight: 400;\">average price per bed<\/span><\/a><span style=\"font-weight: 400;\"> in 2021 up 22% compared to Q1 of 2020\u2014valuations are proving to be unpredictable in the current atmosphere. LTCCS is a partner that combines local market insights with the latest M&amp;A data to deliver realistic valuations.<\/span><\/p>\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>In 2021 alone, LTCCS processed 189 CHOWs and Provider Enrollments nationally.<\/p><\/blockquote><\/figure>\n\n\n<p><span style=\"font-weight: 400;\">Our change of ownership (CHOW) services assist investors across the continuum of needs while completing an acquisition or merger. Nationwide, we identify and evaluate M&amp;A opportunities, provide support during the acquisition and underwriting process, and facilitate the licensing and credentialing of new facilities or entities. Our goal is to transition operational assets to new ownership with minimal friction.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Managed_Care\"><\/span><b>Managed Care<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The shift to managed care contracts presents both challenges and opportunities for SNF operators.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Across the nation, state Medicaid programs are increasingly working with managed care companies to deliver managed care long-term services and supports (MLTSS). SNF-managed care contracts provide value-based incentives for high-quality, low-cost care to decrease end-of-life spending and deliver budget predictability back to state Medicaid payers. While a few states have contracted under MLTSS for several years, there is recent momentum with state Medicaid programs to adopt this payment model.<\/span><\/p>\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>As of year-end 2020, <a href=\"https:\/\/www.macpac.gov\/subtopic\/managed-long-term-services-and-supports\/\">25 states contracted with SNF facilities<\/a> through managed care contracts, compared to 8 states in 2004.<\/p><\/blockquote><\/figure>\n\n\n<p><span style=\"font-weight: 400;\">Historically, LTC providers have resisted the shift to managed care contracts due to the challenges in transitioning and managing these contracts. At LTCCS, we leverage our breadth of experience to help leaders navigate the industry\u2019s plethora of challenges, positioning facilities in ways that let them benefit from opportunities offered by managed care contracts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We assist in the initial contract negotiation of MLTSS contracts for all provider types. During renewal periods, we provide contract re-credentialing services and renewal advisory. On an ongoing basis, our clients benefit from our advocacy on regulations and compliance changes. For facilities that need clinical support, our case management services provide utilization oversight.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Case_Management\"><\/span><b>Case Management&nbsp;<\/b><span style=\"font-weight: 400;\">&nbsp;<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Focus on patient care and outcomes to maximize reimbursements and improve resident experiences. Quality of care is becoming a prolific performance metric while time-consuming claim denials are rising.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Payer contracts hold LTC facility operators accountable for providing effective patient care with positive outcomes while monitoring the cost of care. To receive maximum reimbursements, operators must ensure that proper authorizations and standards of care are met. The implications of poor case management in these areas result in claim denials during the billing process.&nbsp;<\/span><\/p>\n<p><a href=\"https:\/\/www.kff.org\/private-insurance\/issue-brief\/claims-denials-and-appeals-in-aca-marketplace-plans\/\"><span style=\"font-weight: 400;\">Insurance denial rates are increasing<\/span><\/a><span style=\"font-weight: 400;\"> across the board. 14% of all ACA-Marketplace in-network claims were denied in 2018. In 2019, that figure rose to 17%. While a reported <\/span><a href=\"https:\/\/www.mcg.com\/blog\/2018\/01\/22\/avoiding-denials-in-the-world-of-case-management\/\"><span style=\"font-weight: 400;\">two-thirds of denials<\/span><\/a><span style=\"font-weight: 400;\"> are recoverable and 90% are preventable, this work places an increased burden on revenue cycle management teams, decreasing profit margins.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By partnering with LTCCS, facility operators can rely on a dedicated team to provide full-service case management services. We work to achieve optimal patient outcomes while managing the prerequisites to decrease denials and increase cash flow.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The LTCCS case management team includes clinicians and reimbursement experts who review your census daily, coordinating between your staff and the insurance companies to provide quality assurance on documentation and the submission of records to meet extensions. We also monitor insurer allowances and provide comprehensive reporting to drive further efficiencies and oversight.<\/span><\/p>\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>Within 3 months, LTCCS turned around a large group\u2019s referral-to-admission rate from 30% to 80%.<\/p><\/blockquote><\/figure>\n\n\n<h3><span class=\"ez-toc-section\" id=\"Outsourcing\"><\/span><b>Outsourcing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Staffing shortages continue across the board, beyond much-needed clinical staff. Securing trusted partners that integrate seamlessly with facilities increases bandwidth and streamlines access to experts. This is one of the best ways to fill clinical, administrative, and operational roles in this unprecedented labor market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">LTC industry reports estimate that 78% of nursing homes and assisted living communities are <\/span><a href=\"https:\/\/www.ahcancal.org\/News-and-Communications\/Fact-Sheets\/FactSheets\/Workforce-Survey-September2021.pdf\"><span style=\"font-weight: 400;\">at risk of closure<\/span><\/a><span style=\"font-weight: 400;\"> due to workforce challenges like staffing shortages and non-competitive wages. Forbes contributor <\/span><a href=\"https:\/\/www.forbes.com\/sites\/howardgleckman\/2021\/09\/22\/staff-shortages-are-hammering-long-term-care-facilities-home-care-agencies-and-families\/?sh=7299ff161e7a\"><span style=\"font-weight: 400;\">Howard Gleckman summarizes the ramifications<\/span><\/a><span style=\"font-weight: 400;\"> of this situation as, \u201cThe shortage of staff in long-term facilities and home care agencies has gone from a problem to a crisis.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To cope with this crisis, LTC facilities are pivoting to outsourced roles as a mechanism to mitigate immediate and future risk. Benefits to outsourcing include a stable workforce and increased access to subject matter experts. LTCCS provides modular outsourcing solutions, allowing clients to be selective in the roles and responsibilities outsourced.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By leaning on our CPA-led finance teams and dependable Revenue Cycle Management experts, facilities working with LTCCS help retain workers and preserve wages, particularly in-house clinical professionals. Outsourcing through LTCCS unburdens existing staff by coupling them with a dedicated team with broad industry expertise.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We work closely with facility partners to ensure continuity in backend services, attain financial stability, and promote growth. Above all, LTCCS invests in technologies that bolster our expertise. The result: We achieve precise, cost-effective outcomes together.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><b>Final Thoughts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The unforeseeable upside to all this disruption\u2014and the opportunities we couldn\u2019t see in 2020\u2014is that market pressures have confirmed the need for well-oiled LTC operations. Those of you with excellently managed revenue have been able to adapt to the shifting tides that did not rise all boats.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A positive reaction to the pandemic has been the waiving of impeditive authorizations\u2014telehealth in SNFs is one example\u2014that had us questioning their efficacy in the first place. Our question today is how many of these changes are here to stay?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As stakeholders in this industry, the work we do reaches far and wide into communities across our nation. We couldn\u2019t be prouder of our partners\u2019 dedication to delivering exceptional care during exceptional times.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We look forward to an exciting and profitable 2022, full of opportunities to innovate and improve. Below are additional ways to get LTC insights and connect with us.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s do more together.<\/span><\/p>\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n<h2><span class=\"ez-toc-section\" id=\"More_Resources_from_LTCCS\"><\/span><span style=\"font-weight: 400;\">More Resources from LTCCS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Articles\"><\/span>Articles<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Make sure you frequent our articles section on the website. Below are some recent insights that you may have missed.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.ltccs.com\/telemedicine-reduced-skilled-nursing-costs#.YcIYhhPML0o\"><span style=\"font-weight: 400;\">Telemedicine: LTC Operators Could Be Missing Out<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/ltcally.com\/articles\/the-top-3-causes-for-aging-ar-in-snfs\/#.Ybfr231Khqs\"><span style=\"font-weight: 400;\">The Top 3 Causes of Aging AR in SNFs<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/ltcally.com\/articles\/4-proven-tips-to-accept-referrals-quickly-in-a-snf\/#.YbfsLX1Khqs\"><span style=\"font-weight: 400;\">4 Proven Tips to Accept Referrals Quickly in a SNF<\/span><\/a><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Social_Media\"><\/span>Social Media<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">From announcements about upcoming seminars we\u2019ll be attending to must-know industry updates, <\/span><a href=\"https:\/\/www.linkedin.com\/company\/ltc-consulting-services\"><span style=\"font-weight: 400;\">follow us<\/span><\/a><span style=\"font-weight: 400;\"> on LinkedIn. We have a lively schedule planned for 2022.<\/span><\/p>\n\n\n<ul class=\"wp-block-social-links is-style-pill-shape is-layout-flex wp-block-social-links-is-layout-flex\"><li class=\"wp-social-link wp-social-link-linkedin  wp-block-social-link\"><a href=\"https:\/\/www.linkedin.com\/company\/ltc-consulting-services\" class=\"wp-block-social-link-anchor\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M19.7,3H4.3C3.582,3,3,3.582,3,4.3v15.4C3,20.418,3.582,21,4.3,21h15.4c0.718,0,1.3-0.582,1.3-1.3V4.3 C21,3.582,20.418,3,19.7,3z M8.339,18.338H5.667v-8.59h2.672V18.338z M7.004,8.574c-0.857,0-1.549-0.694-1.549-1.548 c0-0.855,0.691-1.548,1.549-1.548c0.854,0,1.547,0.694,1.547,1.548C8.551,7.881,7.858,8.574,7.004,8.574z M18.339,18.338h-2.669 v-4.177c0-0.996-0.017-2.278-1.387-2.278c-1.389,0-1.601,1.086-1.601,2.206v4.249h-2.667v-8.59h2.559v1.174h0.037 c0.356-0.675,1.227-1.387,2.526-1.387c2.703,0,3.203,1.779,3.203,4.092V18.338z\"><\/path><\/svg><span class=\"wp-block-social-link-label screen-reader-text\">LinkedIn<\/span><\/a><\/li><\/ul>\n\n\n<p><span style=\"font-weight: 400;\">Join us next quarter for another industry run-down with priceless analysis, trends and projections, and announcements about what\u2019s new with LTCCS.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Telemedicine solutions give LTC facilities new opportunities to maximize revenue by reducing staffing hours, preventing hospital readmissions, and improving quality care.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[21],"tags":[27,28,37,30,31],"class_list":["post-3420","post","type-post","status-publish","format-standard","hentry","category-newsletters","tag-back-office-solutions","tag-growth-advisory-services","tag-ltc-providers-playbook","tag-newsletters","tag-thought-leadership"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The LTC Provider&#039;s Playbook: Q1 2022 Edition | LTC Consulting Blog<\/title>\n<meta name=\"description\" content=\"LTC Consulting Services reviews long-term care and skilled nursing industry news for 2022. 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