{"id":3959,"date":"2022-09-29T21:54:34","date_gmt":"2022-09-29T21:54:34","guid":{"rendered":"https:\/\/ltcally.com\/articles\/?p=3959"},"modified":"2022-09-29T21:54:36","modified_gmt":"2022-09-29T21:54:36","slug":"the-ltc-providers-playbook-q4-2022","status":"publish","type":"post","link":"https:\/\/ltcally.com\/articles\/the-ltc-providers-playbook-q4-2022\/","title":{"rendered":"The LTC&#8217;s Provider&#8217;s Playbook: Q4 2022 Edition"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Hope_for_Growth_Surrounds_Dismal_Workforce_Predictions\"><\/span>Hope for Growth Surrounds Dismal Workforce Predictions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Moving into 2023, we see prolonged challenges facing the industry while maintaining a positive overall outlook that occupancy will continue returning to healthy levels. There is a high likelihood that we will see a tremendous demand for skilled nursing services for many years to come, which should give operators a reason to start thinking about how\u2014and where\u2014they are preparing to scale to meet this demand.<\/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\/the-ltc-providers-playbook-q4-2022\/#Hope_for_Growth_Surrounds_Dismal_Workforce_Predictions\" >Hope for Growth Surrounds Dismal Workforce Predictions<\/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\/the-ltc-providers-playbook-q4-2022\/#CMS_Medicare_Increase_Meets_Looming_Staffing_Mandate\" >CMS\u2019 Medicare Increase Meets Looming Staffing Mandate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ltcally.com\/articles\/the-ltc-providers-playbook-q4-2022\/#Staffing_Levels_Will_Recover%E2%80%A6in_2026\" >Staffing Levels Will Recover\u2026in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ltcally.com\/articles\/the-ltc-providers-playbook-q4-2022\/#More_Behavioral_Health_Providers_Go_In-Network\" >More Behavioral Health Providers Go In-Network<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ltcally.com\/articles\/the-ltc-providers-playbook-q4-2022\/#Markets_Correct_Skilled_Nursing_Remains_Active%E2%80%94for_How_Long\" >Markets Correct, Skilled Nursing Remains Active\u2014for How Long?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ltcally.com\/articles\/the-ltc-providers-playbook-q4-2022\/#Many_Facilities_One_Back_Office_Solution\" >Many Facilities. One Back Office Solution.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ltcally.com\/articles\/the-ltc-providers-playbook-q4-2022\/#Contact_Us_Today\" >Contact Us Today<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ltcally.com\/articles\/the-ltc-providers-playbook-q4-2022\/#Follow_Us_on_LinkedIn\" >Follow Us on LinkedIn<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CMS_Medicare_Increase_Meets_Looming_Staffing_Mandate\"><\/span><strong>CMS\u2019 Medicare Increase Meets Looming Staffing Mandate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Centers for Medicaid and Medicare Services (CMS) announced it is increasing <a href=\"https:\/\/skillednursingnews.com\/2022\/07\/cms-final-rule-gives-nursing-homes-2-7-pay-bump-pdpm-related-cuts-to-be-phased-in\/\">annual reimbursement rates by 2.7% <\/a>for CY2023. The Patient-Driven Payment Model (PDPM) will see\u00a0 rates reduced by 2.3% over the next two years. While the injection of $1.7 billion more is welcome news for long-term facility operators, in the context of historic inflation and stressors on staffing\u2014including stubborn per diem rates remaining high\u2014operational costs may still eclipse reimbursements.\u00a0<\/p>\n\n\n\n<p>Awaiting finalization is CMS\u2019 rule on an Administration-led staffing mandate that seeks to improve the quality of care in nursing homes while seemingly failing to account for the existential issue of an ongoing staffing crisis. <a href=\"https:\/\/www.ahcancal.org\/News-and-Communications\/Press-Releases\/Pages\/New-Report-Projects-Without-Assistance,-Nursing-Home-Workforce-Recovery-Will-Not-Occur-Until-At-Least-2026.aspx\">AHCA\u2019s Mark Parkinson<\/a> stressed the importance of policymakers developing a strategy to help recruitment and retention in long-term care.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Staffing_Levels_Will_Recover%E2%80%A6in_2026\"><\/span><strong>Staffing Levels <em>Will<\/em> Recover\u2026in 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to AHCA\u2019s <a href=\"https:\/\/www.ahcancal.org\/News-and-Communications\/Fact-Sheets\/FactSheets\/BLS%20JULY%202022%20JOBS%20REPORT.pdf\">long-term care jobs report<\/a>, the workforce will recover to pre-pandemic levels by 2026 <em>if<\/em> the rate at which jobs are currently being filled holds. According to the report, 362,700 jobs in long-term care have been lost since February 2020, its lowest level since 1994.&nbsp;<\/p>\n\n\n\n<p>Operators should expect prolonged stress on their workforce. With no clear fix in the near-term, clinical staff, in particular, will have to continue taking on extra shifts to fill the void. Efforts to increase retention should be supported by a people-first approach to managing your workforce and <a href=\"https:\/\/hbr.org\/2019\/11\/balancing-the-companys-needs-and-employee-satisfaction\">creative solutions for retaining existing staff<\/a>.\u00a0<\/p>\n\n\n\n<p>Read more about <a href=\"https:\/\/ltcally.com\/articles\/staffing-solutions-long-term-care-workfroce\/\">proven solutions for supporting your workforce here<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"More_Behavioral_Health_Providers_Go_In-Network\"><\/span><strong>More Behavioral Health Providers Go In-Network<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>AHIP\u2014a national association of health care providers\u2014released a study showing a significant increase in the number of behavioral health providers joining health insurance plans in the last three years. The segment has seen a <a href=\"https:\/\/www.ahip.org\/news\/press-releases\/new-survey-shows-strong-action-by-health-insurance-providers-to-growing-mental-health-care-demands\">48% increase<\/a> in providers going in-network as health insurance providers look to improve services available to care for their members\u2019 mental health.&nbsp;<\/p>\n\n\n\n<p>Facility-centered providers saw relatively slower growth, with 40% more going in-network than three years ago. This increase reflects a willingness of insurance providers to help address a longstanding need for inpatient care for substance use and mental health disorders. Many networks are reportedly offering higher reimbursement rates to attract quality providers.\u00a0<\/p>\n\n\n\n<p>To learn more about how you can get your behavioral health facility in-network, <a href=\"https:\/\/ltcally.com\/contact\">talk to one of our contracting experts.<\/a> LTC Ally is one of few industry experts in the nation that helps such facilities secure contracts with managed care payers.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Markets_Correct_Skilled_Nursing_Remains_Active%E2%80%94for_How_Long\"><\/span><strong>Markets Correct, Skilled Nursing Remains Active\u2014for How Long?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The average price per bed is up this year, at around $100,000 compared to <a href=\"https:\/\/www.mcknights.com\/news\/snf-average-bed-price-hits-90k-threshold-for-second-time-ever\/\">$93,000 in 2019<\/a>. Private buyers have been the primary force driving <a href=\"https:\/\/skillednursingnews.com\/2022\/09\/inside-the-forces-driving-skilled-nursing-valuations-in-2022\/\">SNF sales<\/a>, with public REITs representing those selling.&nbsp;<\/p>\n\n\n\n<p>Amid a tremendous amount of market activity, CMS is expanding its <a href=\"https:\/\/www.mcknights.com\/news\/breaking-cms-reveals-more-nursing-home-ownership-information\/\">publication of nursing home ownership data<\/a> as the White House pushes for greater transparency in the industry. CMS officials have stated the data would help them identify common owners and understand how ownership structures impact care.<\/p>\n\n\n\n<p>The steady increase in SNF valuations shows strength in the market despite tremendous volatility in global markets (at press time) sending the Dow Jones Industrial Average, S&amp;P 500, and NASDAQ to lows not seen since pandemic-era spending, supported by an influx of free money and historic-low interest rates, shot the major indices to record highs.<\/p>\n\n\n\n<p>As central banks across the globe hike interest rates in unison, the Federal Reserve signals its intent to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-21\/fed-delivers-third-straight-big-hike-sees-more-increases-ahead?leadSource=uverify%20wall\">continue raising rates<\/a> until \u201cprice stability\u201d is restored. With the housing market being cooled by mortgage rates surpassing 6% for the first time since 2008, the question on our minds is when\u2014or whether\u2014facility acquisitions will follow suit.<br>In the long-term, demand for skilled nursing facilities is likely to outpace supply, with a <a href=\"https:\/\/www.appraisalinstitute.org\/assets\/1\/7\/Seniors_Housing_Valuation_Trends.pdf\">peak supply shortage<\/a> seen coming by 2049. Investors looking beyond market corrections will likely remain interested in skilled nursing as the industry inevitably recovers from the tumults of late.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Many_Facilities_One_Back_Office_Solution\"><\/span><strong>Many Facilities. One Back Office Solution.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While some investors are busy selling their stakes in long-term care, we at LTC Ally have been investing in the industry by building and developing a leading back office solution tailored to the needs of operators.&nbsp;<\/p>\n\n\n\n<p>In doing so, we have helped support the growth of operators of all sizes by providing exceptional financial management and back office services with unmatched industry expertise.<\/p>\n\n\n\n<p>Daily, we help clients renew their business\u2019 financial health by recouping millions in aged claims, put our financial controllers to work to streamline AP and reporting duties, and have leveraged best-in-the-industry technology to oversee AR and billing for thousands of facilities.<\/p>\n\n\n\n<p>Lift the stress of staffing your back office with proven experts off your chest. Partner with LTC Ally and enjoy greater peace of mind.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Contact_Us_Today\"><\/span><a href=\"http:\/\/www.ltcally.com\/contact\">Contact Us Today<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Follow_Us_on_LinkedIn\"><\/span><a href=\"https:\/\/www.linkedin.com\/company\/ltc-ally\/\">Follow Us on LinkedIn<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Related Articles:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><a href=\"https:\/\/ltcally.com\/articles\/q3-2022-ltc-chows\/\">Making Waves in LTC: Q3 Acquisitions and LTC Change of Ownerships<\/a><\/li><li><a href=\"https:\/\/ltcally.com\/articles\/q-a-ltc-finance-leadership-part-1\/\">Q&amp;A With LTC Ally\u2019s Finance Leadership: Part I<\/a><\/li><li><a href=\"https:\/\/ltcally.com\/articles\/ltc-rcm-case-study\/\">Case Study: Optimizing a LTC Operator\u2019s Billing + Collections<\/a><\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Read the LTC Provider\u2019s Playbook for essential analysis and insights long-term care operators need to know. Exclusively by LTC Ally.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[21],"tags":[],"class_list":["post-3959","post","type-post","status-publish","format-standard","hentry","category-newsletters"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The LTC&#039;s Provider&#039;s Playbook: Q4 2022 Edition | Articles | LTC Ally<\/title>\n<meta name=\"description\" content=\"Read the LTC Provider\u2019s Playbook for essential analysis and insights long-term care operators need to know. 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