SNFs, Medicaid and Healthcare Reform
Whether the House bill, the Senate bill, or anything that may come out of reconciliation, Medicaid reimbursement for SNFs is going to get squeezed. It is amazing the uproar, first over the House healthcare reform bill, and now the Senate bill. I have to admit, like Nancy Pelosi, I have not read either bill, and I also prefer to wait until something actually becomes law to see what it says. Will the ACA replacement cut Medicaid spending over 10 years by $834 billion in the House bill, or $772 billion in the Senate bill? Will the ranks of the uninsured grow by 23 million by 2026, or 22 million? Will the average skilled nursing facility lose $600,000 in annual Medicaid reimbursement under the... Read More »
An Unprecedented Bull Market For Senior Care Acquisitions
The end of June marks the seventh full year of this unprecedented bull market for seniors housing and care acquisitions. We have hit yet another milestone, as the end of June will represent the seventh consecutive year of a bull market for seniors housing and care acquisitions. Not all bulls, however, are created equal, as six months into 2017 it still does not seem as strong as 2015 and parts of 2016. There is certainly more caution in the air, and many people have been waiting for the correction in pricing that just never seems to come. Is the demographic tsunami so strong that a major correction will never happen? Unlikely. Many of us thought rising interest rates would put a damper on... Read More »
Brookdale and HCR ManorCare May Deal
Brookdale Senior Living is rumored to be in exclusive talks with a Chinese investor, and Carlyle Group may finally get out of its HCR ManorCare position. A new rumor was out yesterday that China-based Zhonghong Zhuoye Group was in exclusive negotiations with Brookdale Senior Living after making an offer to buy the company for $3.0 billion, apparently higher than other offers. The problem is that the current market cap is just $2.8 billion, so not much of a premium being offered. Apparently, Brookdale wants to be convinced that the U.S. Committee on Foreign Investment in the U.S. would approve the deal as non-threatening to national security. Really? State secrets on maintaining census and... Read More »
Skilled Nursing Reimbursement Under Trump Care
Record prices per bed for skilled nursing facilities don’t seem to make sense given the reimbursement changes looming. The skilled nursing acquisition market has been booming for the past few years, with back-to-back-to back record average prices per bed. But with all the uncertainty surrounding the future of Medicare reimbursement, not to mention Medicaid and the potential for block grants, it does seem odd that there is still so much interest in the skilled nursing market. Reimbursement, however, isn’t the only story, and there are many providers, despite the reimbursement uncertainty, who can take over a facility and still increase revenues, increase reimbursement rates and... Read More »
New Senior Living Investment Fund
A new investment fund called Senior Living Fund is in the market and funding new developments with enticing promotional returns to investors. There is a new investment fund on the street, called Senior Living Fund, which is mostly investing in to-be-built private pay senior living communities. In their Senior Living Fund IV – USA, investments can range from as small as $50,000 with a preferred monthly cash return of 7.5%, to more than $1.0 million with a cash return of 10.75%. Or, investors can pay a discounted per-unit price and receive more of the return on the back end with the ultimate sale of the property. That is for investors less concerned about receiving a steady monthly check.... Read More »Schedule a demo
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