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. leadingageny.org 26