Health care reform and skilled nursing facilities: a financial perspective

Health care reform and skilled nursing facilities: a financial perspective

In our last post, we discussed how the newly upheld health care reform law might affect seniors moving forward.  

What about skilled nursing facilities? As the plan goes into effect in the coming years, surely these businesses will undergo change.

While seniors will benefit from the law through better Medicare and prescription-drug coverage, [1] some worry that skilled nursing facilities will experience difficulty as Medicare cuts used to finance the law hack into their budget.

“Medicare and Medicaid are two very important revenue sources for skilled nursing facilities, and the government’s willingness to pay that tab, pay that bill or not is very important to the business,” says Jim Sullivan, Managing Director of REIT Research at Green Street Advisors. [2]

In other opinions, a Forbes article published yesterday explained the benefits of the new law for senior care [3]. It was noted that skilled nursing facilities, in addition to doctors, hospitals and other providers, would receive incentives under a new integrated care program. This program would be aimed at improving the way care is delivered to those suffering from chronic illnesses, and most seniors do.  

As professionals working in this field, we want your opinion. Are you concerned about the financial future of skilled nursing facilities as the new health care reform law is implemented?


[1] Sherman, Mark. “Health care law survives with Roberts’ help.” The Charlotte Observer. Web. 29 June 2012.

[2] Olick, Diana. “How Obamacare Ruling May Affect Some REIT Investors.” CNBC. Web. 29 June 2012.

[3] Gleckman, Howard. “Supreme Court Ruling on Health Reform Upholds Key Benefits for Seniors.” Forbes. Web. 29 June 2012.


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