NIC’s new ‘Skilled Nursing Data Initiative’ Energizes Lending and Catalyzes Needed Capital

Are the rates investors are quoting competitive?
Ever wonder if you’re getting the best rate you can on capital?  It’s a challenging question with a data-driven answer.  In a perfect world, skilled operators would be able to benchmark their performance against others, enabling those with the best performance to prove they are worthy of the best rates on capital.  In a perfect world, investors would have access to current performance data on every skilled nursing building in the country, and be able to set attractive rates for those with a positive and predictable track record of success.   That perfect world is in the process of being created.

NIC to flex muscle…again
NIC is ideally positioned to take on this challenge. Years ago visionaries at NIC set about to change the world of investing in senior housing by creating access for investors to a huge library of regional demographic data.  With confidence, today investors can easily size up markets in which to invest.  Over the years, this transparency has catalyzed development of many senior living products across the nation.

In a recent bold move, NIC announced a new initiative to create transparency with a new data set for investors and operators, dubbed the “NIC Skilled Nursing Data Initiative.”  This visionary program will help answer two strategic questions asked by:

• Operators:  are you getting the right rates?
• Investors:  are you setting the rates?

Today capital is flowing into senior housing, but the challenge is much of it goes to organizations focused on private-pay.  For those serving other segments, it’s an uphill battle to find capital at competitive rates. 

Timing could not be better
Nationwide, skilled nursing properties are aging.  The industry urgently needs capital to modernize physical plants, update mechanicals, and upgrade technologies that are the hallmarks of well-run operations in demand.  According to NIC, “The average age of skilled nursing properties in the top 99 markets is 36 years, making many buildings functionally obsolete.” 

Old data is useless
As new payment models across the skilled sector unfold, operators are flexing business models fast. What used to take years is getting done in weeks.  To lend capital, investors rely on historical government data that is 12-18 months old. As a result, the capital rate an operator is quoted may not reflect today’s operating reality. Current data is needed by investors to set the right rate. They need census, revenue by payer source, and much more.

NIC’s Grand Plan
NIC created a clearinghouse for current skilled data and is making it available to operators and investors.  For investors, this innovation will boost confidence in setting rates for capital that are more closely aligned with performance.  For operators, this innovation will boost confidence that the rates they get are competitive.

The data set
NIC is encouraging operators to submit monthly data in the following categories:

• Occupancy
• ADR by Payor Class
• Overall Revenue Trends
• Total Operating Expenses
• Skilled Mix
• Quality Mix
• Patient Day Mix
• Profit Margin/EBITDAR/EBITDARM (profit margin data is sensitive so it is not a requirement)

In return, subscribers get a monthly summary that de-identifies and aggregates data from all contributors.  Subscribers will be able to compare their performance with national benchmarks. As the database grows, subscribers will over time be able to see regional benchmarks.  Operators will not be able to see the specific data of peer operators for confidentiality. 

How Prime Care Technologies helps
NIC turned to Prime Care Technologies (PCT) to help operators submit data. NIC clients do not have to be current clients of Prime Care Technologies in order to participate.  For these operators, PCT will set up and automate data delivery directly to NIC.  For PCT clients using the primeVIEW business intelligence solution, the data feeds are already in place and the automation required for sending data to NIC is simple and straightforward. 

Ready to opt in?
Take the first step toward fair, competitive rates on capital for your skilled nursing portfolio of properties. Visit the NIC Skilled Nursing Data Initiative and complete the form at the bottom of the page.