60 Seconds with Swett: The Development Dilemma
The difficult thing about development right now is that it is both a very tough time to build because of higher capital costs but also may be the time that many developers and investors need to start projects. We know, easy for us to say, especially as the Fed signals that rates are likely to stay high for longer and as the 10-year Treasury rate peaks above 4.5% again. But the reality is that if indeed there will be a supply and demand imbalance in a couple of years, then the predevelopment work (if not shovels in the ground) has to start right now because of how long it would take to get those developments open and leased up by the time baby boomers begin turning 80. That process takes a... Read More »
60 Seconds with Swett: CMS Raises the Minimum Staffing Mandate
On Monday, CMS came out with its final minimum staffing standards for nursing homes, but the eventual outcome is anything but final. Despite the outcry from nursing home providers from the previous proposed mandate of three hours per resident per day, asking simple questions like how can we pay for this and where will this newly needed staff come from, CMS has now raised the minimum to 3.48 hours per resident day, which includes .55 hours for an RN and 2.45 hours that can be fulfilled by a nurse aid, now including LPNs, which were excluded from the prior version of the rule. It will also require facilities to have a registered nurse onsite 24/7. The rule will be implemented gradually over... Read More »
60 Seconds with Swett: The Battle of the Brokers
This Thursday, April 18th at 1pm ET, The SeniorCare Investor will be hosting its first ever Quarterly Investor Call, a virtual event available to our readers that will bring together the latest M&A and valuation data from our platform LevinPro LTC, relevant deal case studies and a robust Q&A period with our audience. Editor-at-large Steve Monroe and I will be joined by three active brokers, Ryan Maconachy of Newmark, Matt Alley of SLIB and Alex Florea of Blueprint, to discuss the current dealmaking environment, everything from the transaction process to buyer and seller dynamics, to pricing and, of course, to financing all sorts of deals. So, if you are thinking about buying,... Read More »
60 Seconds with Stephen Monroe: What History Can Tell Us
As many of you know, I like history. And I like looking back in time at our industry. That is how in October 2020 we concluded that we would not get back to pre-pandemic occupancy levels until 2024 to 2025. It was an analysis no one wanted to hear, but the smart ones removed their rose-tinted glasses. In this month’s issue of The SeniorCare Investor, we will take a 10-year lookback at the three largest owners of seniors housing assets: Welltower, Ventas and Brookdale Senior Living. If you had to guess, when do you think occupancy peaked before the pandemic? How about operating margins? How far are they from getting back to “normal?” While progress has been made, what is keeping them from... Read More »
60 Seconds with Swett: Private Equity Ownership in Health Care
We have long been tired of the often-inaccurate claims of “private equity’s takeover of the nursing home industry” and the too-simplistic or misleading correlations between PE ownership and quality of care. Of course there are never any mentions of the need for SNF owners to make a profit or the benefits of fresh capital injections into the industry and into aging physical plants. We have also written several times that, according to our data, PE firms have only been the buyers in about 5% of SNF deals, a share that has actually shrunk in the last couple of years. Seniors housing was higher, above 10% of acquisitions, but a study done by our sister site LevinPro HC shows that several... Read More »Schedule a demo
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