The Aging of Skilled Nursing Facilities
The skilled nursing market is clearly aging when facilities 20 years and older make up about 87% of the transactions in 2014. The proportion of facilities sold by age largely depends on the product up for sale that year, but even in 2013, 81% of the sales involved a facility that was built before 1993. That is still a significant percentage, but is not that surprising in the industry. There hasn’t been much new construction of skilled nursing facilities (leaving openings for developers like Mainstreet and Innovative Health). However, average prices reached unprecedented levels despite the older facilities, which may mean that as the market demand increases for facilities with either a... Read More »Seniors Housing Weekly Update – Legal Wrangling With CCRCs
May 26, 2015. 60 Seconds with Steve Monroe. One CCRC lost a legal battle with regard to its dining room policies. Other ramifications?… Legal Wrangling With CCRCs The American Seniors Housing Association recently issued a legal brief on a fair housing settlement involving a CCRC. The Justice Department had filed a complaint against a CCRC that had restricted use of the main residential dining room to the residents of the independent living units. This restriction also applied to spouses of an IL resident who were in the skilled nursing unit. Having personally spent a lot of time in a CCRC, I know that many residents don’t like to be reminded of what the future will be like for them,... Read More »Now’s the time for Baby Boomers
If you have been reading The SeniorCare Investor in the past couple of years, you know that we have not bought into all of the talk of demographics so popular in the industry today. The oldest Baby Boomer is 69 now, and we do not believe they will be moving en masse into the communities being constructed today for another 15 or 20 years. And as they live longer, though unhealthier, technology and health innovations may be able to keep them in their homes for even longer. Plus, there’s the issue that the Baby Boomers may not even want to move into the product being built today, much less the communities constructed 10, 20 or 30 years ago. However, the tragic irony is that today may be the... Read More »Medicaid Managed Care Coming To You
May 19, 2015. 60 Seconds with Steve Monroe. The skilled nursing community had better get ready for the managed care tsunami… Is now the time to talk about Medicaid managed care? When managed care first entered the skilled nursing world, it was viewed as somewhere between private pay and Medicaid, but closer to the former in terms of daily rates. But that was in its infancy, and that was not involving Medicaid managed care plans. States are getting slammed with the expansion of Medicaid enrollees, and when the federal government’s commitment to cover the additional costs begins to decrease next year, watch out. The managed care companies will be very different from state Medicaid... Read More »Occupancy and rising development
What do the occupancy numbers recently released by Brookdale Senior Living portend for the seniors housing industry? As expected, the company announced a decline in its occupancy, posting an 80 basis point drop from the previous quarter at its legacy Brookdale properties, and a sequential 110 basis point drop at its legacy Emeritus properties. When compared to the first quarter of last year, the decline is even more pronounced, with occupancy at both groups of properties falling 110 basis points and 200 basis points, respectively. Even when taking into account the expected negative effects of the Emeritus merger at the community level, an especially harsh winter and a relatively... Read More »Schedule a demo
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