HealthPeak, Welltower, Ventas and Others Report This Week
In the next 48 hours, six companies will report second quarter earnings. While it won’t be pretty, you have to think long term. Earnings season is here, and I am afraid it will not be very pretty. Unfortunately, it has not been pretty for a while, but we can always hope. Six companies will be reporting second quarter earnings over the next 48 hours. Everyone is trying to put as good a face on it as they can, especially since we all know that at some point in the future, it will get better. The questions are when, which sectors will start improving first, and how much better will it get? The thing I have a hard time reconciling is that there is still plenty of equity capital out... Read More »
You Can’t Make This Up
California’s nursing home inspectors aren’t being tested for COVID-19. Say what? Nursing homes have been vilified in the media for the number of deaths in their facilities due to the coronavirus. Yes, infection control protocols were not up to snuff at many of them, and certainly not for this virus. But when asymptomatic staff and visitors arrive and unknowingly infect the residents, well, there was not much you could do about it, especially in the early months of the pandemic. Testing has been crucial, as we have all learned. But then we come to find out there was one group that somehow didn’t get the memo. Apparently, the state health inspectors who are visiting all of the... Read More »
Pandemic-Driven Change in Senior Care
This pandemic is lasting longer than some people hoped for, and the longer it does, the greater likelihood of more change. I remember in April talking to a few industry professionals (you know who you are) who thought this “coronavirus thing” would be mostly history by July. So did President Trump. The problem is, hope is never a good business plan. I took the unpopular opinion back then that it was going to be a long, tough slog for the industry. I wish I had been wrong. Because of the pandemic, there have been all sorts of news stories about what is going to happen to the nursing home business. No one can predict the future, not even me. The reality is, however, that the number of beds... Read More »
What’s Wrong with Whistleblower Lawsuits
Consulate Health Care will have to defend itself again over a 2017 judgment. Three years ago, after a 22-day trial, a jury issued a $347.8 million judgment against Consulate Health Care, Florida’s largest nursing home chain. A year later it was overturned. Now, an Appeals court partially reversed the judgment, lowering it to $255 million. While a huge drop, it is still meaningless, because it will never be paid. Consulate was accused of upcoding therapy billing at a few of its nursing facilities. Except that at the time, these facilities were apparently operated by a different company that subsequently purchased Consulate and took on its name. I hate to say it,... Read More »
Federal Oversight Coming To Assisted Living?
Congressional report on assisted living and COVID-19 looks more like a hatchet job than really trying to help. Senators Warren and Markey’s report is in, and try counting how many times the word “federal” was used, as in there are no “federal” reporting requirements, data should be regularly reported to the “federal” government, assisted living facilities should receive support through “federal” programs, and on and on. They had sent a very detailed questionnaire to the 11 largest assisted living operators, and found that 24% of the communities operated by them had at least one positive COVID-19 test, and 8% had outbreaks of at least 10 residents, with positive cases coming in at more... Read More »