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 Maeand 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 firstname.lastname@example.org or 630-858-2501 ext. 235