Data Analytics

A Comprehensive Guide to Data and Analytics in Skilled Nursing

October 16, 2024
10min

Are you using data to its full potential in your skilled nursing organization?

If the answer is no—or even maybe—you’re missing out on one of the most powerful tools at your disposal.

At a well-run skilled nursing organization, success isn’t just about providing exceptional care; it’s about making data-driven decisions that can optimize every aspect of your operations. From staffing and clinical outcomes to reimbursement and financial performance, data can transform how you manage your facilities.

But it’s not just about having data—it’s about using it effectively. In this guide, we’ll show operations, clinical, and finance leaders how to tap into the full power of data and analytics in skilled nursing to drive better outcomes, cut costs, and set their organization up for long-term success.

In this guide, we'll cover every core aspect to understanding data and analytics in skilled nursing, as well as include an action step you can take to improve your data and analytics practices at your organization today.

Ready to unlock the true potential of your facilities data? Let’s dive in.

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1. Reviewing Existing Software in Skilled Nursing

The foundation of any data-driven approach is ensuring that the software tools used across your organization are robust and aligned with your objectives. Skilled nursing facilities typically use a wide range of software for managing essential functions, with some larger organizations boasting over 40+ different platforms!

Those platforms can include but are not limited to:

  • MDS (Minimum Data Set): Software like PointClickCare or SimpleLTC helps facilities manage MDS assessments and submissions, a crucial component for reimbursement and regulatory compliance.
  • Staffing and Scheduling: Empeon and OnShift are popular solutions for managing staff schedules, overtime, and payroll data.
  • Recruiting: Apploi streamlines the hiring process by providing analytics to track recruiting efforts and onboarding. (Check out Megadata's direct integration with Apploi for staffing analytics!)
  • Clinical, Reimbursement, and Census Management: PCC (PointClickCare) and MatrixCare are widely used platforms for clinical, reimbursement, and census management.
  • Financial & Billing: SageIntacct and NetSuite serve as comprehensive financial management platforms. Megadata also integrates with billing data to provide detailed financial reports.
  • Purchasing: Software and partners like TwinMed or Procurement Partners allows facilities to track purchasing and spending trends to control costs.

By analyzing the software landscape across your organization, you can assess how well these tools integrate, where redundancies exist, and where gaps can be filled.

Actionable Step:

Conduct a software audit to identify which platforms are used across different departments, ensuring all essential functions are covered and fully integrated. Consider upgrading software that can communicate with other systems, reducing manual data entry and improving overall efficiency.

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2. Understanding How Your Skilled Nursing Organization is Structured Around Data

Every skilled nursing organization is structured differently, from how teams are organized to how data is collected and utilized. Some facilities may rely heavily on spreadsheets and manual data entry, while others use more sophisticated (or unsophisticated) tools.

  • Manual Data Collection (Spreadsheets): This can be an effective short-term solution but often leads to data silos, errors, and inefficiencies over time. Furthermore, it limits the ability to generate real-time insights, hindering decision-making.
  • Non-integrated Software: Many organizations face challenges when using disparate systems that don’t communicate with each other. For instance, if your staffing software isn’t integrated with your census software, you can't generate crucial benchmarks like Hours Per Patient Day (HPPD) or Dollars Per Patient Day (DPPD).

Actionable Step:

Evaluate your current data collection processes. Contact your software account rep to see if there are any integration opportunities or ways to pull real-time data through a data relay. If not, consider transitioning to integrated software solutions that streamline data collection and improve accessibility across teams.

When every system and software is integrated it can facilitate the ability to quickly drill down or roll-up data across all core departments. For more on the concept of data mobility, check out From Macro Trends to Micro Details: Elevating LTC Decision-Making with Data Mobility.

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3. Assessing Your Organization's Culture Around Data

The culture of your organization plays a crucial role in the success of any data analytics initiative. Some organizations are naturally data-driven, while others may rely more on experience and gut instinct.

Knowing where your facility stands on this spectrum can help guide your approach to bringing new data practices or software into the mix.

  • Data-Driven Organizations: These facilities tend to embrace technology and analytics in decision-making processes. They often look at adopting new software or procedures as a way to stay competitive in the long-term care market.
  • Gut-Driven Organizations: While experience is valuable, relying solely on gut instinct can lead to inconsistencies and missed opportunities for optimization. Many of these types of organizations find that they cannot reliably drive improvements or optimizations within their facilities or teams.

Actionable Step:‍

Survey your leadership team to understand where your facility falls on the data-driven spectrum. If your organization is more “gut-driven,” start small by introducing one or two metrics to track and review regularly to ease the transition toward data-driven decision-making.

We recommend starting with HPPD and overtime trend analysis to help identify facilities that need focused operational attention. Tracking these two metrics religiously can lead to staff scheduling and recruitment optimizations that drive substantial cost savings for the organization.

Check out our other article, The Role of Advanced Analytics in Long-Term Care Staffing Strategies for even more on this topic!

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4. Identifying the Types of Data in Skilled Nursing Facilities

Skilled nursing facilities manage vast amounts of data across several domains, including:

  • Resident Data: This includes clinical data, MDS assessments, and census data, which are essential for tracking patient care, reimbursement, and compliance.
  • Staffing Data: Payroll, time-clock, overtime, and staff retention data are critical for managing labor costs.
  • Financial Data: Billing, purchasing, and reimbursement data help maintain financial health.
  • Referrals and Marketing Data: Tracking where new residents come from and the conversion of leads from referral sources.

Actionable Step:‍

Take stock of all the different data sources within your organization. Identify which data sets are currently being used and which are being underutilized. Work to consolidate this data for easier analysis.

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5. What Does Data Analytics Look Like in Skilled Nursing?

Data analytics in skilled nursing can benefit various departments and processes. It can take the form of dashboards and reports that display key metrics and their trends over time.

Here are a few examples of how data analytics is used by department:

  • Reimbursement: Good data analytics for reimbursement can help both MDS Coordinators and Reimbursement leadership understand how their residents are driving PDPM and CMI rates at their facility or facilities. For example, by visualizing the nursing category of residents within a facility, reimbursement leaders can see what percentage of residents require skilled nursing care. (More on Reimbursement Analytics).
  • Staffing Optimization: Labor costs are among the highest expenses in skilled nursing. Analytics can identify trends in overtime, turnover, and agency staffing to optimize workforce management. (More on Labor Analytics).
  • Financial Analysis: Facilities can benefit from detailed financial analysis to monitor spending patterns, control costs, and ensure profitability. (More on Financial Analytics).

Actionable Step:

Begin by implementing data analytics in one or two key areas (e.g., staffing or reimbursement) and gradually expand across other departments. Show tangible benefits early to encourage wider adoption.

Unlike most skilled nursing data analytics platforms, Megadata allows customers to purchase individual modules, like labor management or clinical, so they can introduce data analytics insights at a pace that feels comfortable for their organization. Interested in learning more? Book a call with us!

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6. Top Data Analytics Platforms in Skilled Nursing

Several data analytics platforms cater to the specific needs of skilled nursing facilities:

  • Megadata: Hey, that's us! A comprehensive platform designed for skilled nursing, offering 9+ modules that cover every core department within skilled nursing including Clinical, Labor Management, Reimbursement, Billing, and more.
  • Primeview: Provides data visualization tools that help track census, quality metrics, and financial performance.
  • SNF Metrics: Focuses on delivering analytics around clinical and reimbursement data, improving regulatory compliance and financial outcomes.
  • Vibe by Blue Purpose: A platform for tracking key operational metrics, including staffing and financial performance.
  • Homegrown Solutions: Some facilities build their own tools using data relays and spreadsheets. While this can work, it is highly time and resource-intensive and is difficult to scale.

Actionable Step:

Evaluate these platforms based on your specific organizational needs, focusing on features that offer seamless integration, ease of use, and high levels of support (see below).

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7. Key Features to Look for in a Skilled Nursing Analytics Platform

When evaluating a data analytics platform, consider these key features:

  • Integration: Look for a solution that integrates with your current software, reducing data silos. (Download our free Integration Guide to see the 60+ platforms that Megadata integrates with!)
  • Ease of Use: Platforms should be user-friendly, with simple interfaces that can be easily adopted across teams.
  • Accessibility: Multiple access points—such as email alerts, web apps, mobile apps, and Excel integration—are essential for wide adoption.
  • Customization: The platform should offer the flexibility to create custom reports and dashboards specific to your organization’s needs.
  • Training & Support: Ensure the platform offers extensive training and ongoing support to facilitate a smooth implementation and continued success.

Actionable Step:

When demoing a platform, ensure it meets these criteria. Consider involving department heads in the decision-making process to ensure the platform meets cross-functional needs. An easy way to do that is to share interactive demo links with your team to spark engagement. Megadata offers short interactive demos for Labor Management, Clinical, and Hiring Analytics!

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8. Bringing Data Analytics into Your Organization

The most effective way to introduce data analytics into your organization is through a top-down approach. Begin with senior leadership and ensure they are well-versed in the platform's features. Gradually expand usage to regional directors, administrators, and department heads.

Actionable Step:

Plan a phased rollout that starts with training key leaders. Use case studies and real-world examples to showcase the platform's value, creating buy-in from staff at all levels.

When evaluating Megadata, we already have a phased rollout document ready for you! Reach out to us via our Contact Us page to request a copy to share with your team.

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9. What to Expect with Data-Driven Decision Making

When data analytics is fully integrated, skilled nursing facilities can expect:

  • Optimized Staffing: Analytics will enable you to uncover opportunities to reduce agency and overtime, increase staff retention, and optimize average nursing HPPD for each facility.
  • Enhanced Care Planning: Better data insights allow for proactive care planning, reducing the risk of incidents like falls or lawsuits.
  • Improved Profitability: By catching negative trends early and managing resources more effectively, organizations can improve margins and grow confidently.

Actionable Step:

Track key performance indicators (KPIs) and share them with your team regularly. Create a culture of transparency and accountability to drive ongoing improvements.

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Honorable Mentions

Here are some lesser categories that still deserve mentioning in this data and analytics in skilled nursing guide...

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Data Governance and Security

With increasing reliance on data, ensuring data privacy, security, and governance is critical—especially in healthcare, where compliance with regulations like HIPAA is non-negotiable. Look for a data analytics provider that is SOC 2 and HIPAA compliant and regularly complete SOC 2 type 2 compliance reports.

To read more about the importance of SOC 2 in healthcare analytics, read our interview with Megadata's Director of Operations, Ben Neuwirth, about Megadata's SOC 2 Compliance.

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Change Management and Staff Adoption Tools

Implementing a data-driven culture or introducing new analytics software can meet resistance if staff aren’t adequately trained or if they don’t see the value.

Your analytics provider should offer you a detailed implementation and rollout plan prior to signing which should include a breakdown of key reports and dashboards by role or department, including their frequency.

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ROI on Data and Analytics in Skilled Nursing

Investing in data and analytics can seem like a significant upfront cost, but the return on investment (ROI) can be substantial when done right. By optimizing staffing, improving reimbursement accuracy, and streamlining operational workflows, skilled nursing facilities can achieve both short-term gains and long-term savings.

Even a small reduction in agency utilization across all facilities can yield hundreds of thousands or even millions in savings depending on the size of your organization.

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Conclusion

In today’s competitive skilled nursing landscape, using data and analytics isn’t just a “nice to have”—it’s essential for optimizing operations, improving care, and boosting financial performance. By carefully selecting the right tools, fostering a data-driven culture, and implementing analytics with a structured approach, your facility can unlock new levels of efficiency and success.

Want help incorporating data and analytics best practices in your organization? Reach out to us by booking a call today!

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