Assisted Living “Lite” Or Not
Whether you think you operate your assisted living community under a hospitality model or a healthcare model, there will only be more health care in the future. Recently, there have been some stories in the senior care media about the hospitality model for assisted living compared with the healthcare model. That was a big debate in the late 1990s when 20 assisted living companies went public as some companies didn’t want to be labeled as “healthcare” companies, with all the regulatory and reimbursement baggage that comes with it. Some preferred to call the hospitality model “assisted living lite.” In fact, the founder of Sunrise Senior Living was famously quoted as saying Sunrise did not... Read More »Time To Move Forward
Activist shareholders can distract management from focusing on growth and cash flow, and maybe Brookdale and Capital Senior Living can move forward in peace. Don’t you just hate distractions. Andy Smith at Brookdale has had to deal with a bunch of activist shareholders for the past year while trying to right his ship. Larry Cohen of Capital Senior Living had his activist several years ago, who then went on his board and became aligned with management’s goals. In round two this year, he has come to agreement with another one, Lucas Advisors, known by some as the trust fund baby hedge fund. Capital has agreed to appoint a new independent Board member, consulting with Lucas on the... Read More »Senior Care Investment Rebound
After a dismal first six weeks this year, stocks have rebounded in a big way. Many of you know that I have been talking and writing about the change in investor sentiment that was taking place from late last year and into 2016. It really culminated in mid-February when pretty much all the senior care provider stocks and REITs collapsed to their new lows. It was all rather depressing, but also counterintuitive because things were not all that bad at the time. Sure, there was some negative news, but the overreaction in the market was just plain astounding. Many people thought it represented a major buying opportunity, even though they were still nervous and wondered if we were really at the... Read More »The Elderly Deserve Better
The presidential candidates are ignoring the real problems, and people should be sick of it. I don’t know about you, but I am getting very irritated at this election. And not just because my guy did not win much of anything on Super Tuesday. I am sick of hearing about spray tans, goofy hair, liars, small hands, short stature, building walls paid for by someone else, tax returns…..is that enough? I really wonder, where have all the grownups gone? Although I don’t agree with him on everything, at least John Kasich is being mature about the issues and his opponents. But one thing is missing from him and all the other candidates. When was the last time you heard them talk about the elderly... Read More »Public-Private Market Disconnect Continues
Record prices again for skilled nursing facilities in 2015, while some of the larger players still struggle. You know I have been talking about the disconnect in the public equity markets for a few months. Some of the largest skilled nursing companies have seen a rough patch recently, and rougher for some than others. One would think that this would also translate into the acquisition market, where buyers might become more conservative as Medicare lengths of stay shorten amid reimbursement pressure, especially with Medicare Advantage plans. But no, the skilled nursing acquisition market is as strong as ever. After setting a record in 2014, the average price per bed soared again in 2015 to... Read More »Schedule a demo
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