$79 billion. Wow! That’s how much skilled nursing facilities stand to lose over the next 10 years due to the 11.1% reduction in Medicare payments, according to research from Avalere Health. Long-term care has never seen such massive cost cutting measures. Not ever. What are providers to do? What are your next steps?
Certainly controlling costs is high on your priority list. Providers have got to find a way to cut costs and operate efficiently, without sacrificing resident care. This is not something to consider or ponder. Controlling costs is a matter of survival. It’s a new age in long-term care, and those providers who take action today have the opportunity to not only survive, but thrive.
One area that we see providers addressing first and foremost is staffing. It makes sense. Labor is your number one expense. Look within your staffing strategy and practices, and chances are you’ll immediately find areas for improvement and opportunities for cost control. I’m not talking about reducing headcount, but I am talking about increasing efficiencies and getting more done with your existing staff.
More accurate staff scheduling, overtime reduction, filling open shifts more efficiently, eliminating the use of agency, and managing staffing levels more precisely can all be considered the low-hanging fruit when it comes to controlling your labor costs. These areas can provide fast improvements that will not only impact your bottom line, but will also help maintain quality care. Automating nurse scheduling and other processes will help get you there, but it takes a solid staffing strategy and daily management practices to succeed.
I understand that this is a challenging time for the industry. But providers unfortunately do not have the time to wait and figure things out. Medicare cuts take effect October 1st. What are you doing to prepare?
