Many Impacts of COVID, But “Stupidity” Factor May Grow
The views on where we are in this pandemic are bifurcating, just like in the acquisition market, but we are also dealing with the “stupidity” factor. Just like in the acquisition market, where values and cap rates have been bifurcating between the top “A” properties and the rest of the market, so are opinions as to the current state of the market and what we can expect next year and beyond. There are those who believe operating costs are getting back to normal, the lending market has strengthened with pent up demand to provide financing, and that values are firming, helped by historically low interest rates. Then there are those who see a long slog through this pandemic mess,... Read More »
The Labor Problem That Does Not Go Away
The pandemic should provide the reason, and time, for providers to re-think labor. When the weekly unemployment filings broke records last spring, there were some people who thought that with millions of workers newly unemployed, the labor crisis afflicting senior care might ease. As far as we have heard, it has not. An unintended consequence of this pandemic is that with census nationally dropping by 1,000 basis points, or more, staffing needs have dropped as well. Fewer people to feed and care for means not as much staff needed, at least in theory. So far, we have not heard of unemployed workers lining up to work in nursing homes or assisted living communities. Most likely the two... Read More »
Regaining The Trust of the Consumer
If you believe the results of a recent survey done by Transcend Strategy Group, the senior living industry has a lot of work to do to get the consumer back on board. A company called Transcend Strategy Group just came out with the results of a survey of 1,000 family caregivers. Of this group, 65% said that COVID-19 has completely changed their opinions about the best way to care for aging seniors, and 68% did not agree that quality care can be provided in “facilities.” Worse yet, 78% are concerned about their loved one catching the virus in a “facility.” These are not good numbers for our sector. But, there were ways to change these opinions. They centered on facilities providing... Read More »
Financial Relief For Seniors Housing
Federal financial relief may be coming to assisted living and memory care providers, but will it be enough? The folks at ASHA, Argentum and NCAL have been working overtime to obtain some federal financial relief for their private pay members to deal with the burdens associated with COVID-19. It’s supposed to be coming soon, but will it be enough? For now, the formula will be based on how it worked for Medicaid providers, which is 2% of 2019 revenues. For an 80-unit assisted living/memory care community with an average $5,000 monthly rate, that might come in at close to $80,000. If you have 50 communities, that is $4 million. Now we’re talking. For a more modest community with 50 units in... Read More »
Beware The Flu Season?
Fears of the flu season compounding the effects of the “second wave” of the coronavirus are overblown, and this is why. Almost every conversation surrounding the coronavirus and outbreaks in nursing homes or assisted living communities eventually gets around to the double whammy of a “second wave” combined with the upcoming flu season. Yes, providers will have to be vigilant, but they have never been as well prepared for the flu season as they are today. Think about it. Less than a year ago, do you remember ever walking into any senior care facility where the staff were all wearing masks, where hand sanitizers were everywhere, where your temperature was taken at the entrance,... Read More »Schedule a demo
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