The ebbs and flows of Medicaid reimbursement rates wield a significant influence on the success and expansion of skilled nursing facilities, and regional variation in economic factors that influence business performance of organizations wanting to grow across states can be a source of frustration.
But besides identifying regional factors linked to reimbursement, any expansion strategy can benefit from avoiding geographical areas with high labor costs and inflated asset prices as well as regions where managed care providers are dominant, experts said.
Marc Zimmet, CEO of Zimmet Healthcare Services Group, put it well: the “SNF-Economy” does not adhere to traditional business principles.
