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 »
Are SNFs About To Go Out Of Business?
A recent survey by the American Health Care Association reveals some disheartening news. If you believe the results of a survey of 463 nursing home providers by the American Health Care Association, well, we are in bigger trouble than I thought. Apparently, 40% of the respondents said they would not be able to sustain operations for another six months at the current “pace,” which we assume to mean the current census and cost levels. A whopping 72% said they would not be able to sustain operations for another year. The problem is that they, unlike the private pay seniors housing industry, have already received several billion dollars of financial aid to help during the pandemic. If they... Read More »
Brookdale, Genesis Report Tough Quarters
Brookdale Senior Living and Genesis HealthCare, the two largest providers, were not spared from COVID’s devastation in the second quarter. The two largest providers in their respective sectors, Brookdale Senior Living in seniors housing and Genesis HealthCare in skilled nursing, did not escape COVID’s wrath. No one expected they would. Fortunately for Brookdale, they have negotiated most of their underwater leases, so that will lessen the economic pain. But consolidated occupancy fell 440 basis points from the first quarter to the second. As of July 31, occupancy was at 76.6%, 120 basis points below the June 30 level. And COVID is spreading in two of its largest states, Florida and... Read More »
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 »Schedule a demo
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