Senior Care M&A Results For 2016
M&A activity in seniors housing and care in 2016 nearly matched that of 2015. Our preliminary results are in, and in the senior housing and care market, 2016 looked very similar to 2015. The dollar value of publicly announced senior care M&A transactions was $14.4 billion last year, just edging out 2015’s $14.2 billion. The number of deals, however, declined by 6%, falling from 359 in 2015 to 337 in 2016. This latter number may rise as a few more disclosed deals are discovered, but it still ranks as the second most active year ever. The dollar total for the fourth quarter of 2016 represented 45% of the year’s total, as a few large transactions came in, something that was in short... Read More »
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 »Schedule a demo
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