Skilled Nursing Facility

Average SNF operating margin at zero for third consecutive year

A recent annual benchmark report found that SNF margins in FY 2019 remained at zero for the third year in a row.

The report also found a correlation between a SNFs star rating and its operating margin. In 2019, SNFs with an overall stat rating of 1 or 2 had margins below zero, while facilities with star ratings of 3 or higher had margins above zero.

CLA’s 35th SNF Cost Comparison and Industry Trends Report used data from CMS’ 2019 annual SNF cost report to determine the average margins.

Because of the higher cost of operating nursing homes during the pandemic, it can be expected that 2020 margins may be even lower.