DataPoint: Skilled Nursing Facility Cost and Efficiency

Skilled Nursing Facilities (SNF) considered “relatively efficient” by the Medicare Payment Advisory Commission (MEDPAC) showed better utilization and financial results than other SNFs during a 2015 study. SNFs were considered relatively efficient based on their cost per day (2012-2014) and their community discharge and readmission rates. Daily cost was standardized for differences in case mix. Nine percent of SNFs qualified as relatively efficient. Both cost per day and Medicare revenue were stronger in the highly ranked SNFs. Relatively efficient SNFs treated more complex patients and had a higher share of ultra-high therapy days. Not-for-profits accounted for 21 percent of the relatively efficient SNFs. MEDPAC’s complete Health Care Spending and the Medicare Program, June 2017 report is available here.

Contact: Ken Allison, kallison@leadingageny.org, 518-867-8820