Big Is Not Always Better, But Capital Structure Counts
Two looming hospital system mergers will create the largest health systems in the country. I assume most of you have heard about the two potential not-for-profit hospital system mergers that will create the largest systems in the country, larger than even HCA, the biggest for-profit hospital company. In one way, this bothers me because with one of them, the combined entity will have 191 hospitals, plus all the ancillary businesses. I just don’t understand how that can be run efficiently. The for-profit chains did their own large mergers, and a few of them are suffering the results and shedding hospitals to pay down debt. But there is one big difference with not-for-profit mergers, and that... Read More »
Investing In The Seniors Housing Sector
There are a lot of reasons to invest in seniors housing, but now some people are making up numbers to bolster the case. I realize there is a lot of general excitement about investing in the seniors housing sector. And there should be, despite the current headwinds. The population is aging, the quality of the properties is at its highest, the choices for consumers are wider than ever before. But what really gets me is when people start exploiting the situation and simply fabricate numbers to make their investment case. Take the case of a relatively new retail investment fund investing in seniors housing development and acquisitions. In one of their promotional pieces, they stated that the... Read More »
Senior Housing Innovation Coming Your Way
As the boomers age, and look at alternatives for housing, many seem to be popping up. There has been a lot of noise in the media about the hot new living arrangements for the elderly, or more specifically, the boomers who are soon to be the elderly. Whether it is co-living arrangements in urban environments or Bill (Green House) Thomas’ new idea called a Minka tiny house, which is about 325 to 400 square feet and is modular, or the new active adult communities being developed as 100 to 200-unit apartment buildings for the pre-retirement housing crowd, all these concepts may be giving senior living providers the jitters. They shouldn’t. As far as I can tell, these are all targeting a... Read More »
Thank You for 31 Wonderful Years
Happy Thanksgiving! First of all, I hope you all have a Happy Thanksgiving tomorrow. It is a great time to be with family and friends, and to be thankful for all that you have. As a company, we are entering our 70th year, which means we have been dedicated to the seniors housing and healthcare business for a very long time. You might think seniors housing didn’t exist 70 years ago, but it did, and the reality is, you would not recognize it, both physically and the quality of care. It was very different, which means you have come a long way. I want to thank you for sticking with us through all these years. I know you may not agree with me all the time, and I may have offended a few of you... Read More »
AARP and Safe Nursing Homes
AARP, not usually a friend of the skilled nursing sector, thinks that nurses on duty 24/7 will solve the quality of care problems. In case you are not a member of AARP, like I am, the cover story in their November Bulletin was called, “How Safe Are Our Nursing Homes?” The story did an overview of the skilled nursing industry, including some of the recent rule changes. But it highlighted what didn’t change, such as not addressing the need for staffing increases. The article blamed staffing, or the shortage of staffing, for most of the woes confronting the skilled nursing sector. The solution? Mandate having at least one nurse on staff 27/7. Great idea, but 1) where are you going to find... Read More »Schedule a demo
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