Study finds half of SNFs to be unprofitable


Approximately half of SNFs are not operating at a profitable level, according to the 34th SNF Cost Comparison and Industry Trends Report, released on October 10 by consulting firm CLA.

The report found that the 75th percentile of SNFs had an operating margin of 4.5% in 2018, while the bottom 25th percentile had margins of -6.5%. For the first time in the 34-year history of the report, the yearly median operating margin was negative, at -0.1% for 2018.

The report also cited a correlation between profit margins and the five-star rating system, as SNFs with lower ratings often had lower occupancy rates, causing them to struggle financially. The report found that SNFs with an overall rating of three or more stars experienced median operating margins and occupancy rates greater than the overall average for all facilities.

Quarterly Member Calls

Members-only calls

Enjoy upcoming and past Quarterly Calls with your AMBR Membership! Click here!

Access sample white papers, tools, analysis, and resources.

Featured Event

Tuesday, October 6, 2020 - 07:00

2019 Revenue Integrity Symposium

The 2020 Revenue Integrity Symposium covers topics essential to revenue integrity, Medicare compliance, and the revenue cycle in acute care and long-term care settings.