Operators know from experience that the delivery of high quality care to residents usually leads to robust referrals and strong occupancies. Reputations count. And investors understand that properties with a focus on quality care typically generate solid cash flows and high returns.
The shift from fee-for-service to fee-for-outcome payments will have an enormous impact on the financial success of providers. And it’s becoming more and more apparent that skilled nursing and post-acute providers risk being left behind unless they move quickly to adjust to the new payor landscape.