‘Operating Pressures Are Very Intense’—Ohio Living CEO on Skilled Nursing Strategy and Mega-Trends
‘Operating Pressures Are Very Intense’—Ohio Living CEO on Skilled Nursing Strategy and Mega-Trends
Skilled Nursing News
November 29, 2023
Operational pressures continue to shape the landscape of the skilled nursing sector as many organizations with assets across the care continuum are divesting nursing homes in favor of other service lines. Responding to pressures from staffing and low reimbursements, Ohio Living decided to act “proactively” and downsize its skilling nursing segment while growing its services in other areas. The move has also allowed the organization to achieve a scale large enough to accommodate some good sense value-based care measures, according to its CEO, Larry Gumina. Ohio Living cut its skilled nursing beds by 350 this year alone, Gumina said. ... Currently, Ohio Living offers skilled and rehabilitative nursing care as well as assisted living facilities, independent living, home health care and hospice—including continuing care retirement communities with multiple service lines—across 48 Ohio counties. ...
Skilled Nursing News: Can you share more about Ohio Living reducing its skilled nursing facility assets?
Gumina: Three years ago, we had over 1,000 skilled nursing beds. And now we’re going to be operating just over 500 of those beds. This was a proactive move for us because we were spending exorbitant amounts of dollars on agency staffing. And so now our commitment continues to be caring for the existing resident base. And again, it’s [because] costs of operating that very important segment of our delivery system are just getting increasingly expensive and the staffing mandate will just promote that expense. ...
Skilled Nursing News: What are some of the other trends that you are following?
Gumina: Part of the mega trends that are taking place with respect to operational complexities are [related to] leadership turnover, access to capital and the scaling within our industry segments. These are going to continue ... for Ohio Living and other providers.