Are negative margins sustainable?

As Hopforce Summer School wraps up, I want to spotlight what matters most in today’s environment: accuracy and optimization in PDPM coding for Medicare Part A reimbursement.

Skilled nursing facilities are under historic pressure — rising staffing costs, supply chain strains, and Medicare payment reductions are squeezing margins.

The average SNF operating margin has fallen to -17% nationwide.

Here’s why accuracy matters more than ever:
* Turnover is draining resources. CNA turnover remains at 42%, driving up costs and risk.
* Margins are razor-thin. Even after a 4.2% Medicare rate increase, most facilities remain unprofitable.
* Errors are expensive. Minor coding mistakes can drain thousands per month in missed reimbursement.

The path forward is clear: facilities that prioritize coding accuracy are positioning themselves for resilience. Those that don’t risk falling further behind.

Thank you for being part of Hopforce Summer School. We hope these insights help your team not just survive, but thrive.

Want to code smarter? Click here to generate a HIPPS code in 60s.