The Night Before Christmas 2022
‘Twas the night before Christmas,And all through the community,Not a resident was stirring,As they took all their meds early.The offerings were hung by the chimney with care,In hopes that a PE firm or REIT would still dare,The lenders were nestled all snug in their bed,With visions of term sheets that would not leave them for dead,And Cindy Baier in her kerchief and I with my pen,Had just settled down to discuss, but when?When out on the lawn there arose such a clatter,She sprang from the board room to see what was the matter,Away to the window we flew like a flash,And tore open the shutters to see who brought the cash.The moon on the breast of the new-fallen snow,Gave a lustre of... Read More »60 Seconds With Swett: The Rising Insurance Costs in Senior Care
Senior care facilities are not catching a break. Labor costs have soared, even when not accounting for staffing agency costs, and won’t come back down. Occupancy is slowly recovering, but a long winter and a bad flu season will set the sector back. Food and other supply costs are high. Plus, inflation, higher interest rates, a weaker housing market and potential recession all make it harder for seniors to afford senior care services and certainly to cover another year of 8-12% rental rate increases necessary for communities to even maintain their operating margins. But another thorn in the sector’s side has been insurance costs, both property and liability, which are rising and eating into... Read More »
60 Seconds With Swett: Healthcare M&A Market Losing Steam, Too
Our sister platform LevinPro HC tracks the M&A market across 12 other healthcare sectors, from hospitals and home health to physician medical groups and MOBs, with our deal database also going back to the early 1990s. And the trend in dealmaking that we are seeing in senior care appears to mirror the rest of the healthcare industry. Like in the seniors housing and care market, we have already broken the annual record for healthcare transactions, and there is still one month to go. As of this filming, we have tracked over 2,230 publicly announced transactions, surpassing the 2,209 transactions from all of 2021, which was the previous annual record high. A private equity rush into buying... Read More »
60 Seconds With Swett: Seniors Housing & Care Market Nears 500 Transactions for 2022
With one month to go until 2023, we are just a handful of deals away from breaking the 500-deal mark for 2022. You’ve heard us say before that the previous record for publicly announced deals was 456, set in 2019 when the biggest issues facing the senior care industry were overdevelopment and a potential PDPM-induced rate readjustment. So, for seniors housing and care buyers and sellers to come together on what we assume will be well more than 500 deals (more when you include the scores of deals confidentially disclosed to us) despite a lingering pandemic, a staffing crisis, inflation and rising interest rates throughout much of the year is impressive. Late last year, we did think there... Read More »
60 Seconds with Swett: Giving Thanks in 2022
It’s been yet another difficult year for the senior care industry with new curveballs coming from inflation and soaring interest rates and staffing woes continuing to hammer communities’ bottom lines. But on the eve of Thanksgiving, we can still find things to be thankful for in our industry. First and foremost, after more than two years of dealing with the pandemic and in most cases working while masked for their entire shifts, we are thankful to the senior care staff that showed up to work every day and provided great care for seniors. Our industry offers a good career path for millions of people, and thanks to most providers (and inflation), wages also increased in 2022 across the... Read More »Schedule a demo
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