Assisted Living Occupancy Woes….Again
According to NIC data, assisted living occupancy dropped in the fourth quarter, which was not a good way to end the year. I don’t like to start the new year off with an “I told you so,” but I will. Fourth quarter occupancy trends were just released by NIC, and let’s just say they were disappointing. Surprising? No, but disappointing? Yes. The fourth quarter is usually looked upon as a solid quarter, with occupancy increases that are necessary to fend off declines in census from what can be bad flu seasons in the first quarter. Until recently, some providers were denying that the jump in development was impacting their census. But privately, we knew there was a different story, even with... Read More »
Changes already for 2017
Welltower has a management shuffle, and The Ensign Group expands its real estate ownership. Well, first of all, Happy New Year. I am not sure if it is going to be all that happy, bumpy yes, happy, it will depend on your perspective. For the first act of the new Congress to upend their own ethics rules, and then to rescind what they just passed, well, one would think they have more important things to do. Perhaps they are waiting until January 20. Meanwhile, we are heading into a year of uncertainty as well, with the full impact of rising interest rates not felt yet, even though financing activity seemed to take a breather in December. The only big news was that at year-end The Ensign Group... Read More »
Ho, Ho, Ho…The CEO
A Christmas salute to senior care’s CEOs. ‘Twas the night before Christmas, when all through the industry No one was buying, not even Ed Kenny The listings were posted by the brokers with care In hopes that Jack Callison soon would be there The investors were nestled all snug in their beds While visions of Bill and Bob Thomas danced in their heads And Barry in his Kerchief, and Bruce in his cap Had just settled down after giving them one last slap When out on the lawn arose such a clatter Paul Ormond sprang from his bed to see what was the matter Away to the window he flew in a flash To see his portfolio turn into ash The moon on the breast of the... Read More »
Investors, and Congress, Ignore MedPAC
Since November’s crash, skilled nursing prices continue to rise. We sometimes wonder if the members of the Medicare Payment Advisory Commission, or MedPAC, ever get frustrated that their recommendations often go unheeded by Congress. This is certainly the case with recommendations for skilled nursing Medicare reimbursement. Last week, MedPAC recommended a Medicare rate freeze for SNFs through 2019, which Congress will surely ignore….again. Because Medicaid policy is not part of its charter, the MedPAC commissioners ignore it, even though they are keenly aware that in SNFs, Medicare payments subsidize low Medicaid payments. Medicare payment increases are usually quite small, but that... Read More »
Genesis HealthCare, Kindred and Brookdale Working With REITs
It was not easy, but Genesis HealthCare, Kindred Healthcare and Brookdale Senior Living have worked with their REITs to strengthen all concerned. In reviewing the events of the year, I think perhaps the most important ones involve Genesis HealthCare, Kindred Healthcare and Brookdale Senior Living. And, of course, the REITs with close ties to them. With regard to Genesis, I know it took some brass ones for Welltower to work through their various leases with Genesis and sell a large number of the properties. But the important aspect was the reduction of the rents and the smaller annual escalators that will keep Genesis on an upward track. Investors liked it, boosting the share price by 37%... Read More »Schedule a demo
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