Fault Lines And Frontiers In Person-Centered, Long Term Care | https://www.providermagazine.com/Issues/2017/April/Pages/Fault-Lines-And-Frontiers-In-Person-Centered-Long-Term-Care-Part-3.aspx | Fault Lines And Frontiers In Person-Centered, Long Term Care | <p class="ms-rteElement-P">Robert Murray sat at the desk with three octogenarian fellow residents; they had an air of authority. Across the desk, the young, shy, but confident Angelica Riviera took her seat. </p>
<p class="ms-rteElement-P">At the Bethel Health and Rehabilitation Center, a meeting of the ages was about to begin: knowledge developed over 300 cumulative years, arrayed against the untested idealism of the 19-year-old Angelica. This was the final meeting where this team of seniors would declare whether Angelica measured up to the certified nurse assistant (CNA) job she was seeking. </p>
<p class="ms-rteElement-P">Elders in skilled nursing centers recruiting their own caregivers is something you would expect Diane Judson, director of nursing, to initiate. She has a cultivated way of relating to residents. She connects with the person concealed within an aging body; she recognizes the human spirit yearning to be whole, to reach its potential, and to rise above selfishness and to serve others.</p>
<p class="ms-rteElement-P">The four residents who interviewed Angelica are the Recruiting Council Judson installed over a year ago. As recruiters, they take over after the routine preliminaries and paperwork. They have the final say in CNA hiring. Robert Murray, a victim of Lou Gehrig’s disease, is an active member. He led the interview with Angelica. His amplifier headset muffled his labored words, but Angelica sensed the pathos in the question Murray directed toward her. </p>
<h2 class="ms-rteElement-H2">Compassion Over Competence</h2>
<p class="ms-rteElement-P">Murray asked her, “Angelica, you see, I am only 42, but I am not a whole person anymore. ALS has crippled me. I can barely move around. I cannot talk with you without this amplifier headset. I was a full person once. I am not anymore. Angelica, as my caregiver, what can you do to make me feel whole again?”</p>
<p class="ms-rteElement-P">Angelica could not stop the gush of tears. “That is not what I had expected,” Angelica says. “I thought they would ask me about my training, my skills, and my experience. Bob’s question cut through all that I anticipated, it went deep inside me. It told me that what they were looking for was not a CNA. They wanted a caregiver that made them feel like a whole person. I cried.”</p>
<p class="ms-rteElement-P">Angelica is now a caregiver at Bethel—a happy one. She has a special bond with Murray. </p>
<p class="ms-rteElement-P">The recruiting elders are uncanny in detecting the kindness an applicant brings to the job. Not all applicants pass the test. Of the 40 or so prospective students or CNAs thus screened by the residents and recruited in the past year, only two have left Bethel: One was hired by Judson against the team’s recommendation—she soon discovered they were right—and the other, although big in heart, fell short on competence. </p>
<p class="ms-rteElement-P">The “Residents Recruit CNAs” story is as much a tribute to Judson as it is a warning about the gaping lacuna in the person-centered approach in long term care. Not all well-regarded programs that preach or practice humanistic principles capture all the essential elements that make the human person.</p>
<h2 class="ms-rteElement-H2">Service Is Joy</h2>
<p class="ms-rteElement-P">A history written in blood, sweat, and tears finally brought the world to agree on a lofty vision of the human person; it is now shared by nations, religions, and cultures. That model posits that five innate yearnings define our goals, endow us our inalienable rights, and confer on us our humanity. We have distilled these primal needs and birthright as: to be, to become, to belong, to be your best, to reach beyond.</p>
<p class="ms-rteElement-P">To reach beyond selfishness and to lift those in need are tendencies to be compassionate etched in our DNA. Adam Smith, the widely misquoted godfather of economists, refers to compassion as a “principle of human nature, the most exquisite sensibility to feel for others.”</p>
<p class="ms-rteElement-P">Compassion is the most divine of human virtues. It brings blessings not only to the receiver and the giver, but also to the bystanding observer. The science of compassion has documented the beneficial changes in brain, body, mind, and soul. </p>
<p class="ms-rteElement-P">As a Nobel Prize laureate put it, </p>
<p class="ms-rteElement-P">“I slept and dreamt that life was joy. </p>
<p class="ms-rteElement-P">I awoke and saw that life was service. </p>
<p class="ms-rteElement-P">I acted and behold, service was joy.” </p>
<p class="ms-rteElement-P">—Rabindranath Tagore </p>
<h2 class="ms-rteElement-H2">Compassion Spreads Its Blessings</h2>
<p class="ms-rteElement-P">The residents in nursing centers know much about the rewards of selfless sacrifice. They were parents, teachers, doctors, lawyers; they volunteered and were good neighbors; they gave. Why should we presume that in their ripe years they desire to disregard life’s lesson, to become self-absorbed and egocentric? </p>
<p class="ms-rteElement-P">It is rare that the person-centered agenda specifically caters to the noblest human instinct that yearns to transcend, to serve, and to give. Ironically, this is a glaring deficiency in many well-funded programs. However, compassion thrives in innovative practices at many nursing centers. </p>
<p class="ms-rteElement-P">At Bethel, Judson opened one route to attain fulfillment via compassion. Other people like Judson at other sites have opened different pathways to compassion:</p>
<p class="ms-rteElement-P">Residents partner with hospice staff; they bring comfort and peace to their dying friends and co-residents.</p>
<p class="ms-rteElement-P">Residents serve on advisory groups that plan menus and improve layout, décor, and furnishings.</p>
<p class="ms-rteElement-P">They serve as ambassadors-at-large that facilitate communication, troubleshoot, and spread cheer and smiles.</p>
<p class="ms-rteElement-P">One nursing center in New Jersey reinstated a resident’s past career role as a judge. She arbitrates disputes and grievances that residents and staff bring to her. </p>
<p class="ms-rteElement-P">At another Eastern site, a resident with a distinguished career on the stage was helped to turn residents and staff into actors; they put on stage shows for their families, friends, and neighbors.</p>
<p class="ms-rteElement-P">In a California nursing center, residents make fancy colored soap, market it at fairs and online, and spend the profit feeding the homeless.</p>
<p class="ms-rteElement-P">Many nursing centers across the nation connect with churches and schools. They host children; encourage intergenerational play; do foster-grandparenting and baby-sitting; and help with homework, writing letters, and so on.</p>
<p class="ms-rteElement-P">At other sites, residents pass on their skills and wisdom to the younger generation. They teach, mentor, and counsel. </p>
<p class="ms-rteElement-P">Kindness and compassion are deeply felt urges that seek fulfilment even as our body ages. Compassion spreads its blessings all around. As Judson says, “Seeing residents hire their caregivers is rewarding enough. Sitting on the sidelines, I listen to residents, I understand what they really want. At each session, I learn something new. It has made me a better leader. It has blessed us all, made each of us a better person.” </p>
<p class="ms-rteElement-P"><em>V. Tellis-Nayak, PhD, is senior research advisor at NRC Health, Lincoln, Neb. He has been a university professor, whose scholarly work has been published in national and international professional journals. He and his wife, Mary Tellis-Nayak, have co-authored a book, “Return of Compassion to Healthcare,” which upholds humanity as the ultimate measure of success. He can be contacted at vtellisn@gmail.com.</em></p> | At the Bethel Health and Rehabilitation Center, a meeting of the ages was about to begin: knowledge developed over 300 cumulative years, arrayed against the untested idealism of the 19-year-old Angelica. This was the final meeting where this team of seniors would declare whether Angelica measured up to the certified nurse assistant (CNA) job she was seeking. | 2017-04-01T04:00:00Z | <img alt="" src="/Issues/2017/April/PublishingImages/blog3_t.jpg" style="BORDER:0px solid;" /> | Caregiving | Column |
Marijuana Laws Create Haze Around Policies | https://www.providermagazine.com/Issues/2017/April/Pages/Marijuana-Laws-Create-Haze-Around-Policies-.aspx | Marijuana Laws Create Haze Around Policies | <div></div>Support for the legalization of marijuana has grown exponentially over recent years. Consequently, a majority of states have legalized medical and/or recreational use of marijuana. Yet marijuana remains illegal under federal law.
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<div>Despite many attempts to decriminalize the drug, the federal U.S. Controlled Substances Act of 1970 (CSA) continues to maintain marijuana as a Schedule I substance.</div>
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<div>The conflicting intersection between state and federal law has made it challenging for employers to carry out their legal obligations. Now, more than ever, it is crucial for employers to be vigilant about this developing area of the law in order to navigate various employment issues carefully.</div>
<h2 class="ms-rteElement-H2">Current Marijuana Landscape </h2>
<div>Marijuana use is illegal under the federal CSA. As a Schedule I substance, marijuana is considered to be a substance that: 1.) possesses a high potential for abuse; 2.) has no currently accepted medical use in the United States; and 3.) lacks accepted safety standards for use under medical supervision.</div>
<div><br>In contradiction to the federal law, a total of 29 states and the District of Columbia have legalized marijuana use to varying degrees. Of these states, Alaska, Colorado, Oregon, Washington, California, Maine, <br>Massachusetts, Nevada, and the District of Columbia have legalized marijuana for recreational use.</div>
<div><br>Despite legalization, many of these state laws do not require employers to accommodate marijuana users, <br>or are otherwise silent on the issue. As an example, Ohio’s marijuana law says that employers are not required “to permit or accommodate an employee’s use, possession, or distribution of medical marijuana.” </div>
<div><br>Challenges arise for those employers in the handful of states that provide marijuana users with employee protections that prohibit discrimination against marijuana users and/or require workplace accommodations for medical marijuana users. Employers operating in these states, including Arkansas, Arizona, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New York, Pennsylvania, and Rhode Island, must be particularly vigilant to ensure their policies comport with the law. </div>
<h2 class="ms-rteElement-H2">Maintaining Compliance With Drug-Testing Laws</h2>
<div>While a majority of states allow marijuana use, employers have a legitimate interest in keeping marijuana out of the workplace due to workplace productivity and safety concerns. To this end, employers institute drug-free workplace policies. </div>
<div><br>But in the haze of marijuana laws, employers must heed state laws in order to maintain compliant drug-free policies. </div>
<div><br>Employers located in the minority states that continue to treat marijuana as an illegal controlled substance in line with federal law can continue implementing such drug-free policies, so long as such policies comply with applicable state and local laws within its jurisdiction. Similarly, states with marijuana laws that explicitly state that employers have no duty to accommodate medical marijuana users are also free to take adverse action (such as discipline or termination) against applicants and employees who test positive for marijuana in accordance with a drug-free workplace policy. Employers face the most challenges in states with marijuana laws that place restrictions on drug testing. </div>
<h2 class="ms-rteElement-H2">Not Automatic Grounds For Termination </h2>
<div>States such as Arizona, Delaware, and Minnesota do not allow employers to take adverse action against an individual for off-duty marijuana use. If an employer wants to take adverse employment action, it must be able to show that the individual was impaired by marijuana during work hours. This is due to the fact that common methods of drug testing show recent marijuana use but cannot differentiate between off-duty use versus an impairment at the time of testing.</div>
<div><br>For example, a urinalysis tests for the presence of tetrahydrocannabinol (THC) metabolites. THC remains in a person’s system for days and even weeks after marijuana consumption. This means that a urinalysis does not provide any level of certainty as to whether an individual who tests positive for marijuana is impaired on the job or if the use was off-duty. </div>
<div><br>While an exception may exist for safety-sensitive positions (such as operating machinery or motor vehicles), health care positions, for the most part, do not fall into this category.</div>
<div><br>Therefore, a failed drug test alone is not grounds for a negative employment action in states with strict drug-testing requirements. Instead, these employers must take additional due diligence steps before taking adverse employment action, such as documenting evidence of actual on-the-job impairment and determining whether the individual is a registered marijuana cardholder, which will largely depend on the employer’s state. </div>
<h2 class="ms-rteElement-H2">Disabilities Law Enters The Picture</h2>
<div>The federal Americans with Disabilities Act (ADA) applies to employers with 15 or more employees and prohibits employers from discriminating against a qualified individual with a disability and are generally required to provide reasonable accommodations (unless an undue hardship or direct threat exception applies). The ADA clearly states that it does not protect individuals using illegal drugs, which is defined as the possession or distribution of drugs that are unlawful under the CSA (such as marijuana), but does not include drugs taken under the supervision of a licensed health professional. </div>
<div><br>Although an employer is not required to accommodate the use of marijuana by itself, employers must be careful in such situations where an individual is using marijuana for a qualifying disability under the ADA. In that case, the individual has the right to be free from discrimination and the right to reasonable accommodations for the underlying disability.</div>
<div><br>The fact that an employee is using marijuana for treatment purposes does not restrict his or her rights under the ADA. Otherwise, an employer that takes adverse action against an individual for marijuana use risks a claim that the individual was fired for the underlying disability. </div>
<div><br>The ADA aside, an employer’s responsibilities are further complicated in states that have marijuana laws that explicitly provide protections for medical marijuana users through antidiscrimination or reasonable accommodation provisions. States with such employment protections include Arkansas, Arizona, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New York, Pennsylvania, and Rhode Island. In these states, employers are prohibited from taking adverse action against an employee who is a medical <br>marijuana cardholder.</div>
<div><br>However, case law is still developing in this area, which presents a challenge to employers dealing with these workplace issues. At a minimum, employers need to be aware if they reside in a state that provides heightened accommodations for medical marijuana users and engage in the interactive process of determining whether a suitable accommodation exists.</div>
<div><br>As is apparent, marijuana laws vary widely from state to state. Since this continues to be a developing area of the law, employers need to regularly review and revise their drug-testing and disability accommodation policies while keeping an eye on marijuana law developments. This is especially challenging for employers with multistate operations. Understanding an employers’ legal rights and responsibilities is paramount to mitigating risk when dealing with these kinds of workplace issues, along with up-to-date policies and careful documentation. </div>
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<div><em>Sheba E. Vine, Esq., CPCO, is the senior director of regulatory compliance at First Healthcare Compliance, a company that offers a comprehensive “turnkey” compliance program management solution to health care providers and others involved in managing health care compliance. Vine has practiced as a litigation and employment attorney. She can be reached at shebavine@1shcc.com.</em></div> | Support for the legalization of marijuana has grown exponentially over recent years. | 2017-04-01T04:00:00Z | <img alt="" src="/Issues/2017/April/PublishingImages/legal_t.jpg" style="BORDER:0px solid;" /> | Legal | Legal Advisor |
Research Project Takes Personal Turn For Phoenix Symphony | https://www.providermagazine.com/Issues/2017/April/Pages/Research-Project-Takes-Personal-Turn-For-Phoenix-Symphony.aspx | Research Project Takes Personal Turn For Phoenix Symphony | <div id="__publishingReusableFragmentIdSection"><a href="/ReusableContent/4_.000">a</a></div><div></div>
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<div>The words symphony and saliva testing are not usually found in the same sentence. But through an innovative research project by Arizona State University (ASU) in conjunction with the Maravilla Care Center and the Phoenix Symphony, they do go together. </div>
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<div><br><img src="/Issues/2017/April/PublishingImages/symphony1.jpg" class="ms-rtePosition-1" width="179" height="204" alt="" style="margin:5px 15px;" /><br>By bringing music—from Neil Diamond’s “Sweet Caroline” to classical compositions—to the Phoenix-based nursing care center’s patients with Alzheimer’s disease (AD), or neighbors, as Maravilla calls residents, researchers are learning how the power of the symphony’s playing affects persons with cognitive and behavioral impairments.</div>
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<p class="ms-rteElement-P">And to do this, saliva testing is performed to compare anxiety levels of selected neighbors when listening to the music versus their most stressful regular activity: bathing. </p></div>
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<h2 class="ms-rteElement-H2">A Community Experiment</h2>
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<div>David Coon, PhD, associate dean and professor of nursing and health innovation at ASU, says the question driving the research is clear.</div>
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<div><br>“What is the impact of a community-level, music-based intervention offered by an interdisciplinary team (symphony musicians, music therapists, nurses, and behavioral scientists) on the mood and behavior of residents with dementia residing in long term care communities?” he says. “Is such an approach feasible for and acceptable to the community?”</div>
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<div><br>Initial results of nurse ratings suggest there have been positive changes in resident mood (for example, increases in positive affect) and behavior (increases in interaction).</div>
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<div><br>Nurse ratings of the environment in the evenings during baths, on the days that morning music events had occurred, “were more positive in terms of levels of resident cooperation and mood, in comparison to evenings without morning music events,” Coon says. </div>
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<div><br>“Finally, the intervention was rated highly by musicians, facility staff, and family caregivers in terms of its overall benefit to residents and themselves.”</div>
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<h2 class="ms-rteElement-H2">Symphony Reaches Out</h2>
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<div>Jim Ward, president and chief executive officer (CEO) of The Phoenix Symphony Association and a key proponent of the program, says the idea to bring musicians to the nursing care center went hand in hand with the organization’s mission, which is in part to give back to the community and align the symphony’s needs with the needs of the community.</div>
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<div><br>The fact that Arizona has a healthy number of elderly residents helped point the symphony to the nursing care setting, and specifically to the AD community. </div>
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<div><br>“One of the key issues around AD is quality of life. And the key driver for quality of life is stress levels, not only the stress level of patients themselves but also of the caregivers of the facilities who have the difficult task of dealing with AD and family members who are going through the grieving process because of the loss,” Ward says.</div>
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<div><br>“So we asked, is there a way that we could affect those stress levels and enhance quality of life?” </div>
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<div><h2 class="ms-rteElement-H2">Nursing Center Welcomes The Research</h2></div>
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<div>But to make the Phoenix Symphony’s outreach come to life, a willing nursing center was needed, and in Maravilla, under the stewardship of CEO Jeffreys Barrett, they found one.</div>
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<div><br><img src="/Issues/2017/April/PublishingImages/symphony2.jpg" class="ms-rtePosition-2" width="305" height="267" alt="" style="margin:10px;" /><br>Barrett says the ASU research team, working with the symphony, approached him about its effort to look at music and memory by utilizing not only standard research protocols of observation, but also through the saliva testing procedures as they relate to stressors in the brain. “And what this also took us into wasn’t just the encounters with the musicians but also bathing. Now, how could bathing potentially be looked at from a music standpoint? Well, it is an intriguing program,” Barrett says.</div>
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<div><br>To explain further, he notes that the program, which concluded in December, started with a concert for the entire Maravilla community, followed by seven encounters lasting around 30 minutes, matching musicians with smaller subsets of neighbors with AD. </div>
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How Program Played Out
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<div>“We broke the musicians into two groups, and we broke our neighbors down into groups, so the musicians and the neighbors were assigned to each other over the next seven Mondays,” he says. The saliva measurements took place following the seven encounters, and were compared with levels taken separately following a neighbor’s regular bathing. </div>
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<h2 class="ms-rteElement-H2">Staff Help Researchers</h2>
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<div>To prepare for the events, facility staff also took preparations. “Several of our [certified nurse assistants] went through training to be research assistants, as well as our licensed nurses. So the entire intent was to see music and memory and throw it in on how it all relates to bathing,” Barrett says.</div>
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<div><br>Valerie Bontrager, director of education and community engagement for the Phoenix Symphony, says Maravilla actually marked the second round of collecting research, with the first round happening at another facility. “But we needed to look at a larger group of data to verify some of the initial findings,” she says.</div>
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<div><br>Bontrager notes that the ASU team also included the musicians in the research by taking their saliva measurements as well to collect data on how performing outside of the regular symphony space and in the community impacted them. </div>
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<div><br>“Some really interesting larger questions started to emerge,” she says, like how does a symphony and art community provide information for other art communities and other long term care facilities.</div>
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<h2 class="ms-rteElement-H2">Musicians, Neighbors Form Bonds</h2>
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<div>To get ready for the experience at Maravilla, Bontrager says, the 20 musicians selected went through mandatory training on AD and dementia and the specifics of the research. “We did these interventions on Mondays because those are the dark days for our musicians. It is the only day they are not scheduled for their regular rehearsal and bigger concert contracts,” she says. “So, they are opting to do this project on their own time and on a day off.”</div>
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<div>And in doing so, in going to Maravilla, something more than research took place, Barrett says, as the entire community of musicians and their matched AD neighbors formed not only a bond via the research, but also personal connections. </div>
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<div>“They made close attachments to neighbors,” he says, and in turn the neighbors also are now missing their new friends. “One of the most amazing developments was the relationships that were built over this period of time. The musicians developed relationships with special and unique people and crossed that bridge of humanness that is very often overlooked in our profession,” Barrett says.</div>
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<div>The nursing care center profession, he explains, is seen as something less than what it is. “And when you have a group come in like the Phoenix Symphony, it validates processes as well. And celebrates work and what we do as a profession,” Barrett adds. </div> | By bringing music to a Phoenix-based nursing care center’s patients with Alzheimer’s disease, researchers are learning how the power of the symphony’s playing affects persons with cognitive and behavioral impairments. | 2017-04-01T04:00:00Z | <img alt="" src="/Issues/2017/April/PublishingImages/symphony_t.jpg" style="BORDER:0px solid;" /> | Caregiving | Column |
Skilled Nursing Center Data In For 2016 | https://www.providermagazine.com/Issues/2017/April/Pages/Skilled-Nursing-Center-Data-In-For-2016.aspx | Skilled Nursing Center Data In For 2016 | <div id="__publishingReusableFragmentIdSection"><a href="/ReusableContent/4_.000">a</a></div><div>There continued to be much discussion last year about uncertainty within the skilled nursing sector as the business model continued to transition from a fee-for-service business model to a value-based model. Uncertainty is likely to persist through 2017 with a new administration to embrace. Although no one can say for sure what the future holds, it is always a good idea to know where the profession stands in the present.</div>
<div><br>The following will take a look at the most recent occupancy, revenue, and sales transactions data. The sales transactions data will include some data on both skilled nursing (nursing care) and seniors housing (assisted living, independent living, and memory care).</div>
<h2 class="ms-rteElement-H2">2016 Transactions: Volume Down but Deal Flow Strong</h2>
<div>Last year marked a significant change in the property sales transactions market for seniors housing and care. Over the past few years, public buyers, dominated by public real estate investment trusts (REITs), have been the main players in driving large transaction volume. However, as the cost of capital challenged public REITs in 2016, the institutional and private buyers (including private REITs and partnerships) together accounted for the majority of dollar volume. <br></div>
<div><img src="/Issues/2017/April/PublishingImages/mgmt_volumewithText.jpg" width="482" height="292" alt="" style="margin:5px;" /><br><br>Although the institutional and private buyers stayed active, they were not able to make up for the dollar volume typically produced by public REIT transactions. In turn, volume dropped significantly from 2015. The number of transactions closed was still strong, but the deals were smaller in 2016.</div>
<h2 class="ms-rteElement-H2">Dollar Volume Trending Down</h2>
<div>Transaction volume for seniors housing and nursing care in 2016 registered $14.4 billion, with $7.8 billion in seniors housing and $6.6 billion in nursing care. Total annual volume was down 34 percent from 2015’s $21.8 billion and down 25 percent from 2014, when volume totaled $19 billion.</div>
<div><br>Last year started out as a tumultuous year in the capital markets. Usually, the first quarter of a year starts off slow given the rush to close deals at the end of the previous year, which effectively empties the pipeline of deals. Then volume picks back up in the second quarter.</div>
<div><br>In 2016, however, the significant increase in cost of capital most likely delayed the finalization of some deals, and a strong bounce back for deal volume in the second quarter failed to materialize like it had in the past couple of years. Only $2.6 billion closed in the second quarter of 2016 after a relatively strong first quarter of $4.3 billion. </div>
<div><br>Digging deeper to look at seniors housing and nursing care separately, the decrease in volume from year to year was really driven by seniors housing volume, as volume decreased significantly by 46 percent, from $14.4 billion in 2015 to only $7.8 billion in 2016. Nursing care volume was down but not as much: Its volume decreased by 11 percent in 2016, from $7.4 billion in 2015. </div>
<div><br>Although dollar volume dropped significantly, the number of transactions was still relatively strong in 2016, as 513 deals closed in 2016. Transaction deal count was down 9 percent from 2015, when 563 deals closed—a record high for this database, which dates back to 2008. In further comparison, 414 transactions closed in 2013 and 556 in 2014.</div>
<h2 class="ms-rteElement-H2">Costs of Capital Higher for Public REITs</h2>
<div>One primary reason for the decrease in public buyer volume was the changing cost of the capital landscape. The Green Street Advisors graph above shows the premium at which public REIT stocks were trading relative to their gross asset value, which is based on the private market capitalization rates and the REITs’ portfolio holdings.</div>
<div><br>When REITs trade at a premium-to-asset value, they can buy properties by raising equity and debt and will get an instant increase in value because the private market value is lower than their publicly traded equity value. In other words, their cost of capital is low when the premiums are high, and they can make an arbitrage play when these stocks are trading at high premiums.</div>
<div><br>Starting in 2013, the premiums started to trend down, which in turn effectively raised the REITs’ costs of capital, making it harder to pay up for properties. The premiums fell again in 2015, which was reflected in transaction volume, as activity by public REITs started to decrease dramatically after the second quarter of 2015 and continuing through 2016.</div>
<div><br>The premiums dropped at the start of 2016 but bounced back rather quickly; however, the premiums were certainly not anywhere as close to where they had been in 2013 and 2014.</div>
<div><br><img src="/Issues/2017/April/PublishingImages/mgmt_CostofCapital.jpg" width="421" height="245" alt="" style="margin:5px;" /><br><br>Considering this cost-of-capital trend for the public REITs will most likely continue if interest rates rise (both short-term and longer-term rates), it will be tough for other capital players to make up the difference in terms of dollar volume.</div>
<div><br>However, smaller owner/operators looking to grow, the private and institutional buyers, and possibly international buyers, will continue to play a role in the number of transactions, barring any major capital market headwinds. </div>
<h2 class="ms-rteElement-H2">Skilled Nursing Price Per Bed Up 25 percent in 2016</h2>
<div>The pricing for nursing care in 2016 saw significant increases in the price per bed. The price for nursing care ended at $95,200 for 2016, which is up 25 percent from last year’s $76,300. Several high-priced transactions that closed in 2016 contributed to the increase, including the Welltower sale to a Chinese life insurance company and its investment manager, Cindat. The 28 nursing care properties in that transaction traded north of the $200,000 price-per-bed mark. In addition, there have been numerous smaller transactions and one-off transactions trading over $100,000. </div>
<div><br>There are several reasons for the higher prices for skilled nursing beds. First, interest rates remain relatively low, especially in developed markets around the world. In addition, there have been some acquisitions in which the buyers increase the acuity level of patients, which in turn can provide higher cash flow per bed.</div>
<div><br>Some of these properties have been built out as high-end transitional care businesses, as well. Other buyers are bidding up the price of properties in hopes to increase the Medicare census, which in turn can increase the cash flow at the property.</div>
<div><br>Seniors housing price per unit ended 2016 at $170,600. It has oscillated around $170,000 to $180,000 for the past couple of years. As volume has decreased, the bid for properties has remained relatively strong, but decreased from the peak of $181,700 in the second quarter of 2015, and has decreased in the latest year-over-year comparison.</div>
<div><br>On a year-over-year comparison, seniors housing price per unit dropped 4 percent, from $178,500, and 3 percent from the previous quarter. However, it has increased over 200 percent from its cyclical low of $58,500 in 2010.<br><span id="__publishingReusableFragment"></span></div>
<h2 class="ms-rteElement-H2">Occupancy Continues to Trend Down in 2016</h2>
<div>Occupancy fell to 81.8 percent in fourth quarter (4Q) 2016, a new low over the past five years, marking the third consecutive quarter in which occupancy reached its lowest point in the series. Unlike in recent quarters, the decline in occupancy was not driven by declines in quality and skilled mix, which both saw modest increases in 4Q 2016.</div>
<div><br><img src="/Issues/2017/April/PublishingImages/mgmt_Quality-Skilled-Mix-YY.jpg" width="484" height="269" alt="" style="margin:5px;" /><br><br>Occupancy was down over 150 basis points year-over-year from 83.3 percent, which was the largest year-over-year decline for the fourth quarter in the data series. It is worth noting that the profession has seen accelerated pressure over the past couple of years as the transition has taken hold within 2015 and 2016. </div>
<div><br>When looking at occupancy, be careful about drawing a complete conclusion as far as the total economics of the business. Occupancy historically has been an important metric to follow, and it still is, but understanding the relationship between occupancy and the true economics of the operating business is just as important.</div>
<div><br>For example, with some operators transitioning into higher-acuity patient care, it is possible that an operating business captures lower patient days because of the lower length of stay for a greater number of Medicare rehab patients. That will cause occupancy to decline.</div>
<div><br>However, it is also possible, all else being equal, the higher reimbursement rates for higher-acuity patients will mitigate some of the pressure on cash flow from lower occupancy, as long as the volume of patient admissions is strong and expenses (such as labor expenses) do not increase more than the incremental revenue. In stating that, the continued pressure on occupancy in 2016 does seem significant for the operating businesses.</div>
<h2 class="ms-rteElement-H2">Skilled Mix Holds Steady </h2>
<div>Skilled mix held steady in the fourth quarter of 2016, which could have been in part due to an early and significant flu season (see chart below). However, it fell by 0.8 percent year-over-year to 24.3 percent, which was only slightly higher than the lowest point in the series, reached in September 2012. The rate of year-over-year change in both skilled and quality mix has been negative since 2Q 2015, with the skilled mix decline slightly greater than the quality mix decline. </div>
<div><br>The skilled mix decline has been driven by pressure on Medicare mix, which reached its lowest level in the data series in 4Q 2016.</div>
<h2 class="ms-rteElement-H2">The Importance of Medicaid</h2>
<div>These days with all of the conversation surrounding value-based purchasing on the Medicare side of the business, it might seem strange to discuss the importance of Medicaid. However, with at least 50 percent of most operator’s revenue coming from Medicaid, it is not only important but vital to survival, especially with the pressure on skilled mix. </div>
<div><br>Although Medicaid reimburses at a lower rate than Medicare or managed Medicare, it still represents a relatively reliable revenue stream for operators. </div>
<div><br>Taking it a bit further, just think about the next couple decades when the long-term-stay Medicaid population/demand increases significantly. If not making the national headlines now, it most likely will at some point.</div>
<div><br>The latest data show Medicaid representing 66.2 percent of patient days as it continues to supply a steady stream of patients. Year-over-year, Medicaid patient-day mix grew 1.3 percent, from 64.9 percent in 2015. Furthermore, Medicaid patient-day mix also grew 3.6 percent over the data time series since 2012. </div>
<div><br>In addition, the 4Q 2016 data demonstrated the constant increase of Medicaid revenue per patient day (RPPD) as the rate rose to more than $200 for the first time in the five-year series. Medicaid RPPD was up 0.9 percent quarter-over-quarter, and 1.8 percent year-over-year. Over this five-year series, Medicaid RPPD experienced a 1.4 percent compound annual growth rate.</div>
<h2 class="ms-rteElement-H2">Managed Medicare Revenue Per Patient Day</h2>
<div>Managed Medicare has grown in importance, as about one-third of Medicare beneficiaries are enrolled in managed care today. And with the narrowing of networks, coupled with the pricing power these plans possess, it has brought some challenges on the revenue side to operators. However, recent data show that revenue per patient day is showing signs of stabilizing. </div>
<div><br><img src="/Issues/2017/April/PublishingImages/mgmt_Managed-RPPD-Slide.jpg" width="492" height="273" alt="" style="margin:5px;" /><br><br>The decrease in managed Medicare RPPD was under $9, year-over-year, compared with a $19 decrease between 4Q 2014 and 4Q 2015. While revenue per patient day for managed Medicare reached its lowest point in the data set at $421.84 in 4Q 2016, the 2.1 percent decrease over 2016 was considerably less than the prior year’s 4.3 percent decline.</div>
<div><br>The decline quarter-over-quarter was also notably less than in previous quarters, at 0.1 percent, which was the smallest decrease in the past six quarters, portending that the year-over-year decreases may continue to shrink as time progresses.</div>
<div><br>Managed Medicare will become an even more pressing topic as nearly half of all seniors are expected to be enrolled in managed care over the next 10 years. This data trend certainly warrants attention.</div>
<div><br>NIC released its latest Skilled Nursing Data Report on March 15, 2017. This latest report and future reports can be downloaded at: http://info.nic.org/skilled_data_report_pr. </div>
<div> </div>
<div><em>Bill Kauffman V, CFA, is senior principal at the National Investment Center for Seniors Housing and Care. He can be reached at bkauffman@</em><em>NIC.org or (443) 837-2429. </em></div> | There continued to be much discussion last year about uncertainty within the skilled nursing sector as the business model continued to transition from a fee-for-service business model to a value-based model. Uncertainty is likely to persist through 2017 with a new administration to embrace. Although no one can say for sure what the future holds, it is always a good idea to know where the profession stands in the present. | 2017-04-01T04:00:00Z | <img alt="" src="/Issues/2017/April/PublishingImages/mgmt_t.jpg" style="BORDER:0px solid;" /> | Management | Column |
Navigating The New Rule: Infection Prevention And Control Program | https://www.providermagazine.com/Issues/2017/April/Pages/Navigating-The-New-Rule-Infection-Prevention-And-Control-Program.aspx | Navigating The New Rule: Infection Prevention And Control Program |
<p class="ms-rteElement-P">The addition of the word “prevention” into the previous regulation for a nursing center’s infection control program signals an important evolution in the regulations aimed at the new challenges nursing centers face in reducing morbidity and mortality from infection. <br></p>
<p class="ms-rteElement-P">These new requirements, recently outlined by the Centers for Medicare & Medicaid Services in the revised appendix PP of the SOM for regulation 483.80, are the topic of this second installment in the series. </p>
<p class="ms-rteElement-P">This emphasis on prevention has come about in all health care settings because of the challenges we face in effectively treating many acute infections, and controlling transmission of communicable diseases. Two challenges make this harder to achieve today in nursing centers. </p>
<p class="ms-rteElement-P">First, infections in today’s health care institutions are increasingly caused by organisms that are resistant to standard antibiotic therapy (MRSA, for example). Second, in today’s nursing centers, we care for frailer elders who are at greater risk for infection in many cases, and when they have a severe infectious disease, they are less able to overcome the sustained physiological consequences.</p>
<p class="ms-rteElement-P">Thus, it is not surprising that recently published work has shown that sepsis is the major cause of hospital admissions for elderly nursing center residents and hospital discharges, and is associated with high mortality rates.</p>
<p class="ms-rteElement-P">The Centers for Disease Control and Prevention (CDC) has been focused on this challenge in recent years, with numerous publications, tools, and pathways related to prevention and antibiotic stewardship in all health care settings. </p>
<p class="ms-rteElement-P">While regulations for nursing centers have always addressed these topics, the current updates represent a more aggressive and proactive approach to infection. For example, new regulations are provided about the need for a surveillance system designed to both report and minimize spread of communicable disease, alcohol-based hand rub and handwashing policies, and other standard and transmission-based precautions. </p>
<p class="ms-rteElement-P">In addition, policies are required on restricting employees with a communicable disease or infected lesions from direct contact with residents or food, and documenting how such risk to residents is minimized. </p>
<p class="ms-rteElement-P">CDC also highlights the importance of restrictions on visitors with potentially communicable diseases. </p>
<p class="ms-rteElement-P">Influenza and pneumococcal vaccination are also highlighted in the new regulations. The regulation includes education of residents and their representatives about the benefits and risks of vaccination. At the same time, the regulation acknowledges resident or resident representative choice, as well as situations when immunizations are contraindicated, and includes a requirement for documentation of vaccinations given or refused.</p>
<p class="ms-rteElement-P">According to CDC, studies have found that less than 50 percent of health care workers and organizations consistently meet the known best-practice guidelines. This is consistent with a point I made in a last year’s column: F441, Infection Control, was the most frequently cited F tag in close to 50 percent of surveys. </p>
<p class="ms-rteElement-P">While the fully developed infection prevention and control program, along with antibiotic stewardship regulations, are included in Phase 2 of the new rule, starting now to ensure you are developing and implementing the compliant and effective policies and procedures will ensure you are on track.</p>
<p class="ms-rteElement-P"> </p>
<p class="ms-rteElement-P"><em>Andy Kramer, MD, is a long term care researcher and professor of medicine who was instrumental in the design and development of the Quality Indicator Survey.</em></p>
<div> </div> | These new requirements, recently outlined by the Centers for Medicare & Medicaid Services in the revised appendix PP of the SOM for regulation 483.80, are the topic of this second installment in the series. | 2017-04-01T04:00:00Z | <img alt="" src="/Issues/2019/December/PublishingImages/AndyKramer_2015.jpg" style="BORDER:0px solid;" /> | | Column |