Conferences abound with opportunities in seniors housing and care, but challenges exist as well.
So, I have been in New York City the past two days at a new conference being put on by iiBIG, formerly known as the International Institute of Business Information & Growth. I believe this is the first seniors housing and care-dedicated conference in New York City for several years, which is surprising given the large number of providers and properties within a 200-mile radius.
I moderated one panel and spoke on another, and while the title of the conference is “Opportunities in Senior Housing & Care,” there are also a lot of challenges in today’s market. Just look at what has been happening with several skilled nursing providers, highlighted last week by the state takeover of 15 Kansas SNFs and 21 Nebraska SNFs operated by Skyline Healthcare. Why? Apparently, they couldn’t make payroll, and were late on other payments as well.
Unfortunately, I think this is just the beginning for this company, but it does demonstrate what can happen with excessive growth combined with high leverage, little equity, and management spread too thinly. Let’s not forget declining occupancy and rates. But there is always opportunity from the pain of others.