Returning Home To Assisted Living
After being pulled out of her assisted living community because of the pandemic, a mother asks to return “home.” In the June issue of The SeniorCare Investor we wrote about how an industry professional lost the argument with his younger sister about moving their mother out of her assisted living community and into the sister’s home. As it turns out, the sister should have listened to him. The sister and her husband were very accommodating, giving up their master bedroom with bath and moving into the guest room. The problem was that this meant the mother was living on the second floor, and since she already had two hip replacements, she was afraid to go up and down the stairs.... Read More »
Employee Raises at No Cost?
One academic believes it won’t cost nursing homes a dime to raise wages. Okay, here I go again about The New York Times. This time, it is not about a reporter, but a contributing academic who is an economics professor at Northwestern University, Seema Jayachandran. Last weekend she wrote about how higher hourly wages can increase productivity, which can translate into higher-quality service. She based her conclusions on two studies looking at department stores and nursing homes. I will talk about the latter one. The study she cites suggests that if every county increased its minimum wage by 10%, there could be 15,000 fewer deaths in nursing homes each year. While I am sure an extra... Read More »
“Benevolent Incarceration” in Assisted Living
Some assisted living residents are getting restless. Why should they be any different from the rest of us? The Wall Street Journal recently published an opinion piece by a 94-year old resident of an assisted living community in New Jersey, where he wrote that he had mixed feelings about his “benevolent incarceration” during this pandemic. While he understands that the current restrictions are to keep him and the other residents safe, he raises some valid questions. At his community, no residents have tested positive for COVID-19, while three staff members have already recovered from it. Yet, the residents still can’t eat in the dining room, all meals are delivered to the apartments where... Read More »
Assisted Living: Recession Resistant or Not?
Assisted living emerged from the Great Recession largely unscathed. Will history repeat itself 10 years later? Well, I just found out on Monday we are officially in a recession. Not that anyone needed to get the official notice, since we all know what 40 million recently unemployed means for the economy. But what does it mean for assisted living? In the “Great Recession” assisted living came out looking pretty good because of its need-driven characteristics. In the ensuing 10 years, average per-unit prices soared to record levels even as over-development caused some census issues. So, is this recession, or potential depression, going to be different? The elderly will continue to need care,... Read More »
Seniors Housing M&A Market Comes to Life
Welltower’s recent announcement of two portfolio sales at low cap rates during the pandemic bodes well for the market. It has been a quiet past few weeks in the seniors housing M&A market. Last week was the first time we can remember when we have gone an entire week without one announced acquisition. That leaves us worried as to the liquidity in the market and what we may expect in the coming weeks. Well, we breathed a sigh of relief when Welltower announced two separate transactions for seniors housing portfolios completed by Newmark Knight Frank with a total value close to $800 million. When the MOBs are added in, the total comes to about $1.3 billion. More details on these... Read More »Schedule a demo
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