CLA Report Ties SNF Profit Growth to Quality, Managed Care Mix
CliftonLarsonAllen's 41st Annual SNF Cost Comparison and Industry Trends Report, released Friday, finds nursing home occupancy growth slowing even as managed care reshapes admissions and reimbursement. The report includes managed care data for the first time, showing managed care accounted for 42.3% of 2025 skilled nursing admissions, split between Medicare Advantage (32.4%) and Medicaid managed care (9.4%). Medicare Advantage residents have shorter stays (25 days versus 41 for fee-for-service) and lower daily charges, requiring facilities to turn over MA beds roughly 64% more often to match census from traditional Medicare. CLA concludes that quality ratings are increasingly tied to financial performance, with five-star facilities showing higher occupancy, lower contract labor use, and operating margins of 4.7% versus 1.8% at one-star facilities, suggesting quality functions as an "economic flywheel" for referrals and payer access.