The Disgraceful Democratic Debates
The presidential debates last week had a glaring hole, one that everyone should be concerned about. I don’t know about you, but I watched all four hours of the presidential debates last week. I do sort of thrive on those things. But didn’t you think there was something missing? Something major that was not asked? There was not one question from the moderators about fixing Social Security, or Medicare, or Medicaid, or our growing national debt. The Social Security “trust fund” is projected to be depleted in 16 years, just when the last boomer turns 71. Next year it will spend more than it takes in for the first time in nearly 40 years. Medicare’s hospital insurance “trust fund” is expected... Read More »
Skilled Nursing Is Here To Stay
Three experts chimed in about what the future holds for skilled nursing, and while headwinds persist, they were all positive on the sector. I have been remiss in not talking about the excellent webinar you may have missed (link here) on June 13 about investing in the skilled nursing market. While the panelists all agreed that the operating environment will continue to be challenged for a while, they were all positive on what the new PDPM reimbursement system will do for most providers, and the sector as a whole. While there has been some compression in skilled nursing cap rates, the historical average of 12% to 13% seems to be one that will be around for a while, despite the 10-year... Read More »
Disrupters and Other Game Changers
The annual Senior Living Innovation Forum kicks off this weekend, and it is a great meeting to talk openly about how we can do things differently, and better, to both survive and thrive. I am heading out to the annual Senior Living Innovation Forum this weekend, and I just can’t wait. It is relatively small, around 200 people, and is designed to be an open discussion with C-suite executives in a casual format. But the discussions focus on ideas that may shape the industry in the future. Or disrupt certain aspects of it. Or lower costs in an environment where many providers are being challenged both with costs and with revenues. I have been tasked to lead a session called “Capital vs.... Read More »
A HUD Debacle With SNFs?
One major default is used to blast a very profitable arm of the government. I don’t know if anyone noticed the June 3 lead article in The New York Times business section, but the reporter, Matthew Goldstein, should have talked to more people. One company, Rosewood Care Centers, defaulted on $146 million in loans secured by 13 skilled nursing and assisted living facilities in Illinois and Missouri. According to the story, it now demonstrates the “problems plaguing the HUD program.” Plaguing? Give me a break. Yes, it may have been likely that the buyer of these facilities in 2013 had few financing options given the two states’ reimbursement history, but that is one reason why HUD is supposed... Read More »
The Skilled Nursing M&A Market
Have we hit bottom, or will values continue to decline? Join us next Thursday as we try to decipher what the market holds for investors over the next several years. Depending on who you talk to, skilled nursing facility values, and the SNF M&A market in general, are going to be troubled for a while. Or, we have hit bottom, and with the new PDPM reimbursement system starting in a few months, SNFs will claim their rightful spot in the healthcare delivery food chain, with values increasing. That is quite a difference in opinion, and one where billions of dollars are at stake. Next Thursday, we are hosting a webinar on the skilled nursing acquisition market to try to decipher where it is... Read More »Schedule a demo
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