Kindred Healthcare For Sale, Or Not
Kindred Healthcare disclosed that at least one buyer was in early talks to buy the entire company. Don’t you just love rumors? Last week, Kindred Healthcare disclosed that they were well on their way to divesting their remaining skilled nursing facilities, as planned, mostly in groups of facilities to different buyers. But we have also heard there was someone interested in the entire portfolio. Kindred also revealed that someone was in early discussions to buy the entire company. The shares jumped 15%. Now, readers may remember that we have been saying for some time now that the stock was undervalued, and that the components were worth well above the current market cap. Others do not... Read More »
Independent Living Market Outperforms
First quarter data from NIC MAP shows IL occupancy again exceeding assisted living, but with less new development. What is it about the independent living community market that keeps occupancy more stable than assisted living, yet sees a much lower level of new development? In the latest NIC MAP data on the first quarter, the IL market outperformed the AL market again, even though IL occupancy did slip a bit sequentially and year over year. I have a hard time understanding why there is not more development in the IL side of the business. Yes, they are larger properties that require more capital and a longer fill time, but it just seems they can be more tailored to any market’s particular... Read More »
Senior Care Staffing Woes Continue
Too many stories about employee theft and abuse, and Medicaid and Medicare fraud, cloud the senior care industry’s future. I don’t know about you, but I am always surprised by how many stories I read about employee theft in senior care communities, Medicaid and Medicare fraud by skilled nursing owners, assaults by employees on residents who they are supposed to take care of. What is it about this industry that seems to attract people with, well, less than good intentions? On the fraud side, there is one answer, of course, and that is greed. The problem, however, is that some of these people get caught, and then come back under a different name or using a front LLC and start all over... Read More »
March Madness and Washington Madness
While March Madness for basketball may be over, the madness in Washington with healthcare reform and Medicaid block grants may be just beginning. First of all, although I am not a gambler, and do not like to speculate in stocks, I do love to fill in my brackets for March Madness. And I have been participating in Randy Bufford’s Trilogy Health Services Madness group for about 10 years now. And….this year I came in fourth out of 695 participants, my second top five finish in 10 years. That’s the good news. The other good news is that, although we were subject to quite a bit of dysfunction in Washington two weeks ago, it looks like the skilled nursing industry has been spared the chaos that... Read More »
Record Skilled Nursing Prices Have Peaked
After setting record prices for four straight years, the 2016 record price may have some staying power. As you know, the average price per bed for skilled nursing facilities hit a record in 2016 for the fourth year in a row. The number of properties selling for more than $100,000 per bed, which used to be reserved for only the very best facilities, also hit a record. I hate to be the bearer of bad news, but I believe last year’s record average price may have some staying power. As I said last week, I have been accused of being Mr. Doom and Gloom, but realistically, when looking at the landscape, there is little positive that would push prices higher. Medicare Advantage is pushing down... Read More »Schedule a demo
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