Will the Labor Crisis Bring Senior Care To Its Knees?
The issue of labor will challenge the senior care industry and potentially bring it to its knees. That is at least our opinion, and that of many in the industry, as demand for senior care services (which will only increase in the next 10-15 years and beyond) must be met with an appropriate supply of skilled labor. The number of CNA, food service, maintenance, RN and LPN positions required to serve the aging population is only growing, and those jobs, particularly CNAs, RNs and LPNs, are getting more complex as the average resident acuity rises at assisted living and skilled nursing facilities. Operators, if they find the skilled labor to fill these roles (a big if), will have to contend... Read More »QCP vs. HCRMC Heats Up
Other than its increased share price, the news does not seem to be getting better with regard to the negotiations between Quality Care Properties (NYSE: QCP), HCR ManorCare and the various stakeholders. After making only a partial rent payment for June because of liquidity concerns, it looks like HCRMC has skipped the July payment in its entirety. The two sides have been trying to negotiate a deal, which seems to be the acquisition or merger of HCRMC into QCP, which would wipe out the burdensome lease payments. Our guess is that they just can’t over a few of the major sticking points, which include the Department of Justice investigation and the unfunded deferred compensation totaling more... Read More »
Jump In Senior Care Deal Volume
The dollar value of announced seniors housing and care acquisitions in the second quarter was more than six times the first quarter. I hope you all had a happy 4th of July and got to stretch it into a four-day weekend. We are now in the mid-point of the year, and while transaction volume may have slowed a bit, the investment dollars are picking up steam. After a slow first quarter based on announced seniors housing and care acquisitions totaling only $1.4 billion, the second quarter has seen a significant spike to more than $9.6 billion in deal value. That’s the highest quarterly level since the third quarter of 2014. Admittedly, 65% of the dollars committed last quarter involved just two... Read More »
SNFs, Medicaid and Healthcare Reform
Whether the House bill, the Senate bill, or anything that may come out of reconciliation, Medicaid reimbursement for SNFs is going to get squeezed. It is amazing the uproar, first over the House healthcare reform bill, and now the Senate bill. I have to admit, like Nancy Pelosi, I have not read either bill, and I also prefer to wait until something actually becomes law to see what it says. Will the ACA replacement cut Medicaid spending over 10 years by $834 billion in the House bill, or $772 billion in the Senate bill? Will the ranks of the uninsured grow by 23 million by 2026, or 22 million? Will the average skilled nursing facility lose $600,000 in annual Medicaid reimbursement under the... Read More »
An Unprecedented Bull Market For Senior Care Acquisitions
The end of June marks the seventh full year of this unprecedented bull market for seniors housing and care acquisitions. We have hit yet another milestone, as the end of June will represent the seventh consecutive year of a bull market for seniors housing and care acquisitions. Not all bulls, however, are created equal, as six months into 2017 it still does not seem as strong as 2015 and parts of 2016. There is certainly more caution in the air, and many people have been waiting for the correction in pricing that just never seems to come. Is the demographic tsunami so strong that a major correction will never happen? Unlikely. Many of us thought rising interest rates would put a damper on... Read More »Schedule a demo
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