LeadingAge New York Adviser Fall 2015 Vol. 1 | Page 27
Post-Acute Care: Challenge,
Opportunity or Both?
H
ow do you turn a challenge into an opportunity? You change your mindset.
Showing that you can reduce re-hospitalizations will be your value, maybe even
your brand. Partnering and securing a network of providers will build the infrastructure
you need to improve your revenue and case mix. All of this comes under the umbrella
of increased quality and decreased cost. That is the golden formula for the future.
Partnering with other like-minded facilities can broaden your services and increase
your case mix. Merging offers savings in many areas of operation, and early retirement
incentives can provide that long-term relief you need. Don’t be afraid of initial costs
to offset future expenses. Only the best and strongest partnerships will survive the
unavoidable post-acute healthcare challenges. Value-based payment will represent
tremendous opportunity if you know how to show that you are the gold standard.
One way to build value is to increase capital. Where will the capital come from? There
is equity on one end of the spectrum and liquidity on the other. Your ability to fundraise
can give you the equity; but for liquidity, you need to strategically review your assets.
Do you have real estate that you can sell, develop yourself or allow someone else to
develop then pay you rent? No matter which you choose, you can offset your taxes
with rent or an outright sale of the property. Regional banks are willing to work with
you and HUD financing can be a great option for property development.
Based on the
conference program
entitled:
CHALLENGES AND
OPPORTUNITIES
IN POST-ACUTE
CARE IN THE
NEXT THREE TO
FIVE YEARS
The demographics are in your favor if you are able to negotiate with Medicaid
managed care and have an informed conversation. Don’t think you have negotiating
power – yes you do! When you recognize the need to backfill shorter lengths of
stay with increased admissions, and do it efficiently, you provide value. Look at the
benchmark rates for the State and for your competitors, they are out there. Talk to
LeadingAge New York staff. Your membership provides you with access to our staff
and free resources. Start your negotiations and gather the facts, but don’t be late to
the party. One-third of the industry’s facilities are in transition but by the end of 2016
the “easing into” this transition ends.
Be aggressive in your pursuit of value, do a better job and turn the inevitable into an
opportunity for your facility.
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