Aging Services Financial Implications of COVID 19...Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC‐registered investment advisor
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WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTINGInvestment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC‐registered investment advisor
SNF Highlights ‐ National• CLA estimates $6‐9 billion of liquidity could be needed for US skilled
nursing facilities by late June before the impact of interventions• CLA simulations of liquidity need includes a 10% SNF Facility Infection
Rate which could result in a liquidity loss of $1.2b• CLA simulations indicate that 70% of US SNFs could be in a negative cash
position by mid May• SNFs could have an important role to play in assisting hospitals in
management of a “past peak” surge with potential to reduce health care system costs by $4.5b to $5.0b during peak surge
• While SNFs could play a role, CLA estimates that currentMedicare PDPM and Medicare Advantage rates are a minimum of $1.3b+ short of funding surge related costs for SNFs over the next 90 days
The analyses included herein were based hypothetical assumptions concerning the potential effects of COVID 19 on the near term liquidity of selected health care segments. Our analysis was limited to available public data and high level assumptions regarding near term revenue losses. Our analysis is intended to provide insights into the size of the liquidity problem faced by these industries during the critical next 90 day time period as of March 30, 2020. It does not attempt to include the impact of the various actions being taken to solve this liquidity problem. As such, we did not perform an examination, review, or compilation on any of the underlying data and provide no assurance of any kind on the results of these analyses.