Marcum LLP Releases Annual 5-Year Nursing Home Statistical Analysis: Benchmarking Tool for Facility Performance and Strategic Planning
Marcum LLP today issued its third annual nursing home benchmarking study, covering the period 2015-2019. The report is produced by the Firm’s Healthcare Services Group to help long-term care providers improve both operational and financial performance and to guide strategic planning for the future.
Marcum’s new Five-Year Nursing Home Statistical Analysis is an exhaustive review of the Center for Medicare and Medicaid Services (CMS) database of CMS Form 2540-10 Medicare cost reports filed annually by the nation’s approximately 15,000 nursing homes – of which 10,000 constituted the sample for the Marcum analysis. In addition to the review of Medicare cost reports, the analysis utilized the Five-Star Quality Reporting System as well as Medicaid cost reports filed with various states. The benchmark study presents both national and regional data, and covers Departmental, Revenue, and Balance Sheet analytics as well as a catalog of data reference tables.
Key among its findings, the report reconfirms a direct correlation between staffing ratios (number of nursing hours per patient day) and quality of care, both overall and in specific categories. Metrics include health inspections, staffing, and quality measures. Regions of the country where facilities received the lowest ratings in the 5-star system also had the lowest staffing ratios; conversely, those with the highest star ratings demonstrated the greatest care hours per patient.
In a positive indicator for the health of the industry overall, the percentage of nursing homes nationwide receiving five stars (highest performance rating) increased over last year’s analysis, while the percentage of 1-star (lowest rating) facilities decreased:
- Five Stars: 4,105 homes (27.14% of total population): +5.45%
- One Star: 2,149 homes (14.21% of total population): -4.36%
Looking ahead, the report also examined demographics, occupancy, and average length of stay to reveal implications for the future outlook of the long-term care industry.
“While this is intended to be a report of trends characterizing the long-term care industry over the most recent five-year period, it is hard not to recognize the unprecedented times in which we currently find ourselves. My original intention was to highlight the positive way the industry has managed the transition from October 2019’s Medicare Prospective Payment System (PPS) to an entirely new Patient Driven Payment Model (PDPM) — almost seamlessly, I might add. Unfortunately, the world changed in March 2020,” said Matthew Bavolack, national leader of Marcum’s Healthcare Services practice.
“It is no secret that the face of long-term care will probably never be the same. We also believe that COVID-19 will give new impetus to the government’s ongoing right-sizing initiatives. If there is a silver lining to this pandemic, it comes in the form of one word…awareness. Awareness that, for far too long, the largest payor source in the long-term care industry – state reimbursement – has not kept pace with funding for the care needs of frail and elderly residents. Currently, there are numerous initiatives in play across the states to bolster the industry through increased Medicaid reimbursement. While we all can agree that providers will probably never receive from reimbursement what they truly need, it’s nice to see regulators recognize the industry as a whole is integral to the continuum of care and needs to be properly supported. Many questions remain as to what that support will look like. Will it be temporary? And what conditions will come with it? To be continued…” Bavolack said.
About Marcum LLP
Marcum LLP is a top-ranked national accounting and advisory firm dedicated to helping entrepreneurial, middle-market companies and high net worth individuals achieve their goals. Marcum’s industry-focused practices offer deep insight and specialized services to privately held and publicly registered companies, and nonprofit and social sector organizations. The Firm also provides a full complement of technology, wealth management, and executive search and staffing services. Headquartered in New York City, Marcum has offices in major business markets across the U.S. and select international locations. #AskMarcum.