Fitch Ratings-New York/Austin-25 September 2025: A repeal of skilled nursing facilities (SNF) minimum staffing standards would reduce the risk of potential new cost pressures on U.S. life plan communities (LPCs) with SNFs, Fitch Ratings says.
The Centers for Medicare and Medicaid Services (CMS) have drafted an interim final rule that would repeal the 2024 rule establishing minimum skilled nursing staffing ratios, although details remain unclear. Congress postponed implementation of the 2024 rule until 2034 as part of the 2025 tax and spending bill.
LPCs with significant SNF services have limited ability to raise rates given their exposure to government payors. Government reimbursement rates, particularly Medicaid rates, have not kept pace with heightened expenses related to staffing SNFs.