ANNAPOLIS, Md. — Occupancy at U.S. skilled nursing facilities was up marginally between the second and third quarter of 2020 to 74 percent, but remained significantly below levels reported in February (84.9 percent) and March (83.5 percent) when COVID-19 began impacting the country, according to data from the National Investment Center for Seniors Housing & Care (NIC).
The decline has been more severe in urban areas, as occupancy fell 11.8 percentage points since February versus the 8 percentage point decline in rural areas in that same period.
The data comes from over 1,500 skilled nursing facilities in 48 states that report data to NIC, an Annapolis-based data and analytics organization serving the seniors housing industry. The report includes information through September 2020.
“Significantly lower occupancy and greater operating expenses have created unprecedented challenges for skilled nursing operators,” says Bill Kaufman, senior principal at NIC. “They are bracing for a difficult winter, given the latest surge in COVID-19 cases and no immediate additional government intervention. Due to COVID-19, NIC expects occupancy to remain dangerously low in the fourth quarter before vaccines become available to healthcare workers and skilled nursing residents.”
Congress enacted the CARES Act and Paycheck Protection Program earlier this year, which helped keep major sectors of the economy afloat during the pandemic. Skilled nursing was also aided by the Centers for Medicare and Medicaid Services waiving its three-day hospital stay requirement, which extended coverage to more people impacted by COVID-19.
“Many skilled nursing facilities survived the spring and summer because Congress authorized unprecedented financial aid,” says Beth Burnham Mace, NIC’s chief economist. “But as funds become exhausted and COVID-19 cases rise with little likelihood of immediate government intervention, it will be difficult for many facilities to continue sustainable operations.”
In a recent survey by the American Health Care Association, 72 percent of nursing home operators said they will not be able to maintain operations for a year under current conditions. Forty percent said they would be unable to last six months.
To view the complete NIC report, click here.