The costs/benefits of opening a skilled nursing facility at Naval Hospital, San Diego

Abstract

The objective of this study was to determine whether it would be cost-beneficial for Naval Hospital, San Diego to open a skilled nursing facility. Subsidiary purposes of the study were: (1) to determine if there is a need for skilled nursing care, (2) calculate the manpower requirements to staff a skilled nursing facility, (3) ascertain the cost to operate a skilled nursing facility, and (4) determine facility requirements. Based on the findings of this study, the following recommendations have been made: (1) open a 37-bed skilled nursing unit at Naval Hospital, San Diego as a means to reduce acute care costs, and (2) utilize the skilled nursing unit at Naval Hospital, San Diego as a pilot program to evaluate the potential for implementation of skilled nursing care at other Naval health care facilities. Analysis of financial data from civilian hospital-based skilled nursing facilities in San Diego County indicates that utilization of a 37-bed skilled nursing unit at Naval Hospital, San Diego would yield potential savings of $1,647,231 (1991 dollars) in patient care. These cost savings are made possible through utilization of smaller employee-to-patient ratios and less expensive staffing.