Problem:
|
Industry Name
|
5-Day
|
YTD
|
1-Month
|
3-Month
|
1-Year
|
3-Year
|
5-Year
|
|
Long-Term Care Facilities
|
-0.30
|
36.14
|
5.74
|
5.91
|
47.19
|
13.21
|
-4.27
|
As the Baby Boomer generation ages, the long term care industry is positioned to boom if it can keep up with quickly changing regulations and migration to a less institutional and more home-like approach to its format. From Morningstar’s returns, one can see the gains being made. My company, however has never posted a profit and has several large obstacles precluding it from even turning a profit. We are part of a larger health system and have historically existed to alleviate the main hospital as it costs more per day to keep a patient in a hospital bed than a nursing home bed. Primarily, the unfunded indigent population that it must serve as a government entity is saved in the trauma room (and miraculously so), but is discharged to the nursing home a vegetable for the rest of their life. Secondly, the majority of its workforce is unionized and highly educated in union rules. The shining light on our nursing homes and our greatest value is the 5-star quality of care provided. The healthcare industry is highly competitive and new options are presented regularly. As home health options build steam, the nursing home industry will have to redefine its role – perhaps from long term care to short term rehabilitation.