Industry Update

Staffing

Staffing shortages are still a major problem for skilled nursing operations, especially as the acuity level of patients has risen. The National Institutes of Health notes unsafe staffing at hospitals leads to more errors in care and even more burnout among overworked nurses. A recent survey by AMN Healthcare found nearly 1 in 3 nurses in America may leave nursing for another career due to burnout.

It is even worse in nursing homes that rely on certified nurse aides to provide 95% of the direct care. Skilled nursing facility shortages of nurses and aides were averaging just above the 17% mark, down from a high of about 29% in January 2022. Bureau of Labor report found 8,000 added jobs for nursing and residential care facilities in April.

Occupancy

Medicaid revenue per patient day (RPPD) hit an all-time high of $269 in January. That was up 2.79% year over year. Medicaid revenue mix in January was at 49.8%, up 91 basis points from a year earlier. The new proposed nursing home pay rule provides operators a 3.7% Medicare Part A raise for fiscal 2024. That is a  $1.2 billion increase.