Good Vaccination News
Connecticut takes the lead in vaccination rates, but senior care staffers need to get on board. I just heard that my home state, Connecticut, is number one in the country with more than 50% of those eligible, 16 and over, having been vaccinated. In my town, we are now well over 70%, and I suspect will hit 80% or more by the end of May. This is what we need. I have been fully vaccinated for over a month now, and it is quite a liberating feeling. Not that I was fearful about going anywhere pre-vaccination, but it does make you feel a little more empowered. And, I will be going to my first conference in late May. Can’t wait, although I could do without the plane ride. So, obnoxious as I can... Read More »
Waiting To Sell, Or Buy, Or Lend
If census has indeed bottomed in the senior care industry, investors may still want to wait for several months of sustained growth before buying again. Although “consensus” on anything is dangerous to rely on, it does seem that either we have hit that bottom of the occupancy plunge, and if not, we are very close to it. After a year of turmoil and uncertainty, a rising national occupancy level for seniors housing will be quite a relief. What we are hearing is that some lenders want to see at least three months of consistent, increasing census for their new loans, and we suspect some buyers will want to see that as well. I guess you could say they want to see it before they will believe it.... Read More »
Is Home Care The Answer?
The move toward more home health is upon us, and it is time for providers to engage. If President Biden’s $2.1 trillion “stimulus” bill goes through, you all have heard about that $400 billion for home and community-based services. Not $400 million, but billion. When nearly 20% of a so-called stimulus package is going towards home and community-based care, well, forgive me for getting nervous. It is the progressive political/academic/union complex trying to make a major change in care for the elderly, but with borrowed federal funds. We know that Medicaid doesn’t work well for most nursing homes, and that most assisted living providers want to remain private pay. That means there is... Read More »
The Divergence of the “A” vs. “B” Communities
Prior to the pandemic, investment demand was high for the so-called “value-add” properties, with the potential for much higher returns than for “A” properties. With crashing occupancy all around, did this dynamic change, and will the disparity between “A” and “B” values grow wider post pandemic? The COVID-19 pandemic hit the seniors housing industry hard, and while no community was immune from the difficulties, there are probably going to be winners and, unfortunately, losers coming out of this. Lower acuity communities appear to have performed better in the last year, and properties with strong existing census had a leg up going into the pandemic. But in 2020, buyers seemed to have... Read More »
Senior Care M&A Tanks In Q1
After a strong fourth quarter, senior care M&A activity cooled off this winter. We thought that after 59 seniors housing and care M&A transactions were announced in December 2020, a monthly record, we had returned to some kind of “normal” in terms of dealmaking. Well that just didn’t happen in the first quarter of 2021, when despite widespread vaccination of the senior care population investor activity cooled to just 77 publicly announced deals. That is just a preliminary total but is well off Q4’s total of 127 deals. M&A in the skilled nursing sector especially slowed down, accounting for just 32% of the deals announced during the quarter. But it makes sense. If various... Read More »Schedule a demo
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