The Biden Administration is implementing a final rule requiring nursing homes to disclose additional ownership and management information. This transparency initiative aims to empower residents and families to make informed decisions about care and enhance accountability. While many aspects of the rule are promising, LTCCC has several concerns, including:
CMS has delegated substantive aspects of the rule to sub-regulatory guidance, which do not carry the weight of regulation and could easily be weakened by future administrations and
CMS has not required annual disclosures or, importantly, instituted penalties for failure to report accurately.
LTC BY THE NUMBERS
Vaccine Impact. Nationwide, only 31% of nursing home residents are up to date with their COVID-19 vaccines as of December 3. Meanwhile, a new analysis led by researchers from Michigan Medicine reveals that older adults in nursing homes who survived COVID-19 experience lasting effects, including increased dependence on staff and a decline in brain function. On average, residents’ effects lasted about nine months. During the study follow-up period, 30% of those confirmed with COVID-19 died, which was more than twice the percentage of those in the comparison group.
Nursing homes are facing significant barriers in obtaining enough doses of the COVID-19 vaccine for nursing home residents. Some of these barriers include difficulty finding on-site vaccination services, lack of availability, backorders, and issues with reimbursement processes, resulting in delays for residents.
GET THE FACTS
LTC Properties, a REIT based in California, has made significant progress in advancing its financial goals during 2023, according to its Chairman and CEO Wendy Simpson. Simpson expressed optimism for the remainder of the year, noting positive signs of “continued industry recovery.” She also noted challenges such as bank lending fluctuations but told McKnight’s that LTC Properties aims to benefit from this environment.
Welltower, a REIT which owns hundreds of assisted living and nursing home facilities, announced net operating income growth exceeding 20% for the fourth consecutive quarter. Welltower’s CEO reported the “second highest level of growth in the company’s recorded history.”
OWNERSHIP TRENDS IN LTC
Who isn’t benefiting from REIT trends in long-term care? The residents. A new report found that private equity (PE) and real estate investment trust (REIT) facilities appear to be lower quality on average compared to other for-profit facilities. Specifically, PE investment is associated with a 12% decrease in RN hours per resident day (HPRD) and a 14% increase (i.e. worsening) in deficiency score index compared to other for-profits. Similarly, REIT investment shows a 7% decrease in RN HPRD and a 14% increase in deficiency score index. Chart via report by D. Stevenson etal.