The Secret Sauce To Success
Empowering your Executive Directors may be the way to go. I finally found out the secret sauce for success in the senior care market, at least for The Ensign Group. It is called empowerment. Simplistically, the home office does not interfere with the operations at each local community. Other than property, casualty and health insurance, the executive directors are pretty much free to do what they want with expenses. But, they have to succeed. Here’s the deal. A young ED is given full P&L responsibility, with certain benchmarks, of course. He or she is then part of a local team of a few other EDs, and they meet regularly and compare notes on costs and revenues. They can even decide on... Read More »
Average SNF And Seniors Housing Prices Hit Four-Year Low
The headwinds facing skilled nursing and assisted living have finally had their impact on acquisition values. We are obviously not in good times right now, but it is also not as bad as it sometimes appears. The mood is cautious for most, but hopeful for many, as occupancy and labor continue to be the problem issues facing the entire industry. What I don’t like, however, is when news reports come out saying that 50% of SNFs nationally lose money. What they fail to say is that this is after depreciation, amortization, interest and lease expense. Before these costs, the vast majority of nursing facilities are still making money, just not as much as in the past. It looks like 2018 was finally... Read More »
Thank Wayne Kaplan
Offering free meals to federal workers without a paycheck is the way to go. For all of you who have descended on Los Angeles for the annual ASHA meeting this week, please thank Wayne Kaplan of Premier Senior Living for their generosity, and smarts. At the company’s 23 assisted living and memory care communities located in six states, they have been offering federal workers going without a paycheck free meals at their communities. It can be breakfast, lunch and dinner. While we don’t know how many people took them up on this offer, think of the goodwill it will generate across their locations, especially when the word gets out. We are making the assumption, of course, that the food is good.... Read More »
Seniors Housing & Care Acquisition Stats
The Seniors Housing Acquisition and Investment Report, and the Skilled Nursing Acquisition and Investment Report will be coming soon with better data then ever before. We are closing out the 2018 data for our skilled nursing and seniors housing acquisition market statistics, which will be presented in two separate reports this year, to be released in March. They will be called the Seniors Housing Acquisition and Investment Report, and the Skilled Nursing Acquisition and Investment Report. Let’s just say that with a record number of publicly announced transactions last year, plus the private ones we receive, the quality of the data for this year’s reports is the best it has ever been. It... Read More »
The Good and the Bad of NIC’s Latest Occupancy Numbers
Fourth quarter occupancy may have been flat, but it is sure to decline in the early part of this year. We need to find new ways to deal with it. What great timing, with NIC’s occupancy and construction numbers just released for the fourth quarter, given our webinar tomorrow. Here’s the good news. Occupancy was stable in the fourth quarter, and new construction as a share of existing inventory, while still high at 6.0%, is 130 basis points off its recent high in the fourth quarter of 2017. And, at long last we seem to be reaching equilibrium between new supply and demand. The bad news is that assisted living occupancy is still low at 85.4%, and while unchanged from the third quarter, was... Read More »Schedule a demo
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