Current State of the Sector Mark Parkinson, AHCA President and CEO
Sector Background
The Numbers Supply of Investment-Grade* Seniors Housing and Care Properties in the U.S. (as of Q4 2013**) ***One nursing bed is equivalent to one unit. Source: NIC Research
How We’re Doing
Short-Stay vs. Long-Stay
Key Factors: How People are Doing State in which they operate Payor mix Debt structure
Opportunities
Aging Population
Challenges
Federal Government is Broke
Risks That We Face Have Changed 2010 The Hill CMS Changing Payment Models 2016
Changing Payment Models
Population Growth – 80-84 Years
More People Will Need Our Post-Acute Services Source: SNF Volume from Avalere projection model; Medicare enrollment from 2015 Trustees’ Report
Some Providers Will Win
What CMS Wants
CMS Support of Health Care Delivery System Reform will Result in Better Care, Smarter Spending, and Healthier People Key characteristics Producer-centered Incentives for volume Unsustainable Fragmented Care Systems and Policies Fee-For-Service Payment Systems Key characteristics Patient-centered Incentives for outcomes Sustainable Coordinated care Systems and Policies Value-based purchasing Accountable Care Organizations Episode-based payments Medical Homes Quality/cost transparency
During January 2015, HHS Announced Goals for Value-Based Payments Within the Medicare FFS System
Implications of Changing Payment Models to Law Incentive for therapy is eradicated Pressure on length of stay New theories of liability
2016 Election
2016 Election House – Unlikely to change Senate – In Play 246 Republicans 188 Democrats Senate – In Play Republicans defending 24 seats Democrats defending 10 seats Presidency – In Play
Likely Result Senate will go to whoever wins the presidency
All Republican Line-Up Medicaid at risk Reduction of provider tax Block grant proposal Per capita cap Other supplemental payments
All Democrat Line-Up Congressional gridlock continues CMS still very active
Tort Liability
2015 Aon Report: Key Findings
2015 Aon Report: State by State