Nursing homes are facing increasingly severe financial disruption, with revenue per patient day down more than 14% from pre-Covid levels as of 2021.
That’s according to analysts at Marcum LLP, a national accounting and advisory services firm, which on Tuesday released its 2023 annual nursing home statistical analysis. In addition to painting a picture of financial challenges, the report was more upbeat on potential staff and census improvements.
The analysis was divided into three categories — the pre-COVID environment, the “heart of COVID,” and the beginning of COVID recovery.
“This year’s analysis will illustrate how changes in people have dramatically impacted overall spending and continues to this day,” Matthew Bavolack, principal of the national healthcare group said.
Analysts also explored the impact of the 2019 conversion of the Medicare payment model from Resource Utilization Groups (RUGS) to the Patient Driven Payment Model (PDPM).
Every region saw an increase in their average Medicare gross reimbursement after the conversion, with the pandemic likely having an impact on rates. The Midwest region saw the largest percentage increase of 9.30%, or an average increase of $47.15 PPD. Meanwhile, the Southwest region saw the smallest increase of 6.86%, with the average daily increase still being $35.90 PPD.