5 things to know about finances at skilled nursing facilities

Modern Healthcare analyzed skilled nursing facility cost reports from fiscal 2018 through fiscal 2021, the latest years for which complete data were available from the Centers for Medicare and Medicaid Services.

Here are five things to know about the finances at more than 13,000 nursing homes over that time period.

1) Most skilled nursing facilities were for-profit in 2021.

CMS divides skilled nursing facility ownership types into three categories: for-profit, nonprofit and government. Individuals, partnerships or corporations may all own and operate for-profit nursing homes.

2) Median net patient revenue increased the most at for-profits.

Since for-profit homes make up the bulk of ownership, they are further divided here into corporation-owned, partnership-owned, individual-owned and other types of facilities. Nursing homes owned by corporations and partnerships fared the best when it came to net patient revenue increases.

3) Nursing homes owned by individuals saw the largest increase in median operating expenses.

However, they make up a small percentage of nursing homes: Fewer than 70 skilled nursing facilities out of more than 13,000 analyzed identify themselves as for-profit homes owned by individuals.

4) Overall, for-profit homes had larger increases in median net margin.

But skilled nursing facilities of all types saw their margins improve.

5) COVID-19 relief funding made up a large percentage of net income in 2020.

Relief benefited all home types, especially for-profit homes owned by individuals and corporations, but facilities in some states got more relief funding than those in others. Click here for median funding per state for 2020 and 2021.

Note: Data are self-reported by the nursing homes and systems.