Nursing Home Reimbursement Pressure ‘Flat Out Profound,’ Necessitating Innovative Models

In the long term, nursing homes may need to explore entirely new models of care, Brown assistant professor Elizabeth White added, pointing to the Green House model, which establishes smaller scale facilities and emphasizes self-sufficiency and community, as an example. “There’s work around really innovative solutions out there.”

“Knowing how community ties can help providers obtain capital, and what type of loan is most industry-friendly can be successful steps towards garnering capital for senior care projects. Taking steps to minimize risk for the lender is another huge factor in attracting capital, according to experienced lenders and those involved in nursing home projects said during a recent webinar hosted by the Green House Project.”

“She calls it the Einstein option, and includes in her standards for innovation commitments to person-directed care, especially training; small home models; alternative payment policies; and development of a stronger direct care workforce. Even a $600 million investment to kick off such catalytic change, she said, would cost just one-tenth of 1% of SNF spending over the next three years.”

“There is always going to be a portion of people who require maybe a more intensive level of care and also always a proportion of people who would prefer to receive care in a communal setting. How are you setting yourself up to be that provider of choice in a market where maybe there’s less global demand for nursing home beds, but people want privacy, people want to really know their caregivers?”