60 Seconds with Swett: Supreme Court Decision Hits Public SNFs
So much of the ire against skilled nursing facilities (personal, political and in the media) has been directed towards privately-owned facilities, and mainly their ownership those they deem as “private equity”, because of their great sin of caring for nursing home patients at a profit, and often not even at one. However, a recent Supreme Court ruling is now opening up public SNFs to the threat of lawsuits on the basis of civil rights violations. After the wife of a patient with dementia in a county-owned SNF in Indiana sued alleging he was unnecessarily chemically restrained and involuntarily transferred without their consent, which would be violations of the Federal Nursing Home Reform... Read More »
Brookdale Senior Living Occupancy Jumps in May
After struggling in the first quarter, which historically has been the industry norm, Brookdale Senior Living posted an increase of 40 basis points in weighted average occupancy in May (compared with up by 70 basis points in May 2022), and 50 basis points for month-end occupancy (compared with up by 90 basis points in month-end 2022). That is the good news. The bad news is that weighted average occupancy in May was still just 76.6%, the same as in January. So far, weighted average occupancy has increased by 50 basis points in the second quarter (two months). This compares with an increase of 100 basis points in the first two months of the second quarter of 2022, and 160 basis points for... Read More »
60 Seconds with Swett: Welltower Increases Guidance
Welltower came out with a business update for June, and there was some good news on the financial front, particularly in regard to labor cost trends. First, the REIT was able to raise guidance for both its 2023 net income attributable to common stockholders and 2023 normalized FFO on the back of better-than-expected operating results in its SHOP portfolio and a bolstered balance sheet. Operationally, the REIT reported that same-store RevPOR continued to grow at a faster rate than ExpPOR in the first quarter of this year, the fifth consecutive quarter of margin expansion. This was helped in part by agency labor expense as a percentage of total compensation dropping to 3.4% in the first... Read More »
Diversified Healthcare Trust – Not So Fast
It has been nearly two months since Diversified Healthcare Trust announced its merger with Office Properties Income Trust, two REITs basically controlled by external manager RMR Group. This was about the most self-serving transaction we have seen in a long time. But at least one DHC shareholder is not going to stand by. Flat Footed LLC, which with its affiliates owns about 7.4% of DHC’s shares, wants shareholders to vote against the deal, believing DHC should be (will be) worth between $9 and $10 per share if they let their SHOP portfolio continue to improve. The shares closed May 31 at $1.36 per share. That is a huge valuation differential, and it all seems to rest on DHC’s management’s... Read More »
60 Seconds with Steve Monroe: A Win For Providers
We all know that the Life Care Centers of America nursing home in Kirkland, Washington was the location of the first major SNF outbreak of COVID at the beginning of the pandemic. Well, the families of two residents who died sued the facility, the management company and some employees for negligence. As I have stated too many times, this early in the pandemic no one really knew what was going on, no one understood the severity, and no one knew what to do with the early cases, if they even had test kits, and to be held liable for deaths in those early weeks did not seem to make sense. While the jury found that the company was not at fault for the deaths of the two women, the jury found... Read More »Schedule a demo
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