If you are new to the industry, it won’t be long before you
have a conversation that includes an unfamiliar acronym or abbreviation. “Why does everybody keep saying Sniff?” (skilled
nursing facility). Here are some common acronyms
that will help strengthen your vocabulary:
GSEs: Government Sponsored Enterprises (such
as Fannie Mae
and Freddie Mac). Established
with the purpose of improving the efficiency of capital markets.
TPA: Transfer of Physical
Assets- In reference to the application used for a property sales transaction
involving the assumption of a HUD-insured loan.
ACOs: Accountable
Care Organizations. Providers such as
hospital systems or physician groups take on responsibility for groups of
patients. Medicare and participating
insurers will generally offer financial rewards for ACOs that save money and meet quality goals for these patients.
RUGs: Resource Utilization
Groups. Nursing homes have a daily base rate of reimbursement that is adjusted
based on the grouping of nursing or therapy service for each patient.
CHOW: Change of
Ownership. When you buy a facility, you
will need to go through the CHOW process to get the approval of the State
licensing department. This process can
vary from 30-365+ days depending on the state.
For other questions surrounding the sale of nursing homes or
sale of assisted living facilities, please contact Toby Siefert at siefert@slibinc.com or 630-858-2501 ext. 235
