Blackstone, now Ventas, Vying for Brookdale Senior Living
With rumors that Blackstone was out of the bidding for Brookdale Senior Living, it was then leaked that Ventas was in discussions. The saga never ends. We are certainly in weird times. Last week, it appeared that Blackstone was out of the bidding for Brookdale Senior Living, or at least a part of it. Then, it was leaked late Thursday that Ventas was in discussions to buy all or part of Brookdale. What happened the next day? Brookdale’s stock dropped 6.5% on volume of more than 19 million shares, or almost five times the average. So, did investors think Ventas would not pay as much as Blackstone would, and were disappointed? Perhaps, but then after the long weekend, Brookdale jumped back up... Read More »
Brookdale Senior Living Finally Reports
Brookdale Senior Living finally reported fourth quarter earnings, and they were no better and no worse than could have been expected. While I can’t say it was worth the wait, Brookdale Senior Living finally reported fourth quarter earnings, and it was no better and no worse than what could have been expected given industry trends. That was probably good news. Executive Chairman Dan Decker started the earnings call by stating that they would not be discussing strategic options on the call, which was smart, other than to say that of course they want to maximize shareholder value, but it remains to be seen how that is done, and when. Occupancy at Brookdale declined sequentially and year over... Read More »
Record Skilled Nursing Facility and Assisted Living Facility Prices in 2016
The average skilled nursing facility price per bed set a record for the fourth year in a row, and the average assisted living facility price per unit set a record for the third straight year. What can I say, other than I am a bit astounded? We have tallied the results of the seniors housing and care M&A market for 2016, and there were a few records set, again. First of all, as I alluded to last week, the skilled nursing facility market set a record for the fourth straight year, with the average price reaching $99,200 per bed, a 15% increase over the previous record set in 2015. Why such an increase? A record number of skilled nursing facilities that sold for more than $100,000 per bed.... Read More »
Another Record Year for Skilled Nursing Facility Prices
At the ASHA annual meeting, where they are not talking about record skilled nursing facility prices. Ok, so here I am at the conclusion of the annual ASHA meeting in California, where we are not talking about record skilled nursing facility prices. This is a forum where all the major leaders in the seniors housing sector get together in a more informal setting and see what is going on in the their industry. But I am not going to talk about seniors housing today. I am going to talk about skilled nursing. We are wrapping up our analysis on the 2016 M&A market, and we may have a few surprises for people, but mostly in the skilled nursing side of the business. As you may know, skilled... Read More »
Medicaid Block Grants Coming Soon
Many skilled nursing operators will not like the aspect of repeal and replace that could introduce Medicaid block grants. The prospect of Medicaid block grants has been lurking in the background for many years, a few decades perhaps. With the new Trump administration now installed, block grants of Medicaid funds to each state seem to be on the front burner as part of the repeal and replace of the ACA. Block grants would be just that, a fixed pool of money from the federal government that each state would decide how to spend on its Medicaid beneficiaries. Many skilled nursing operators have feared that prospect, because they fear they will be the last ones to be paid. And they may be right,... Read More »Schedule a demo
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