Can COVID-19 Kill The CCRC Market?
We are fond of bringing up the fact that far too many people have put the CCRC (LPC) market prematurely in its grave. It especially happens when there is a recession, like 10 years ago, and now. We are hearing rumblings again even as suburban housing prices are rising as city dwellers are heading for the COVID-free hills. We are not even four full months into this pandemic, and a much shorter time since the economy has officially been declared to be in a recession, so there are still far too many unknowns as to what may happen. But CCRCs entered this recession in probably the strongest financial position they have been in since 2007. As a result, they may weather the storm better... Read More »
New Nursing Home Commission
Watch out. When the government creates a new commission on quality in nursing facilities, it can only mean higher costs, but without increased reimbursement. The members of the new Coronavirus Commission for Safety and Quality in Nursing Homes was named last week, and the provider side of the business was not very well represented, especially on the for-profit side. While Neil Pruitt, CEO of Georgia-based PruittHealth, was named to the commission, no other CEO of a for-profit company was named. The closest was the SVP of Clinical Operations & Innovations of Kentucky-based Signature Healthcare. Of the 25 members, 11 were from academic institutions, government... Read More »
Ventas Slashes Dividend
In an expected development, Ventas slashed its dividend today. What was unexpected was the size of the cut. The July dividend was reduced from the previous per-share amount of $0.7925 to $0.45 per share, a drop of 43%. This will be saving Ventas $130 million of cash each quarter, or $520 million a year if they keep it at this lower level. Management stated a few months ago that if they lowered the second quarter dividend they would revisit it as operations improved. Don’t expect a large increase any time soon. Management indicated that its Seniors Housing Operating Portfolio (SHOP) was showing positive momentum with move-ins and leads improving, but that... Read More »
“Benevolent Incarceration” in Assisted Living
Some assisted living residents are getting restless. Why should they be any different from the rest of us? The Wall Street Journal recently published an opinion piece by a 94-year old resident of an assisted living community in New Jersey, where he wrote that he had mixed feelings about his “benevolent incarceration” during this pandemic. While he understands that the current restrictions are to keep him and the other residents safe, he raises some valid questions. At his community, no residents have tested positive for COVID-19, while three staff members have already recovered from it. Yet, the residents still can’t eat in the dining room, all meals are delivered to the apartments where... Read More »
Shifting Sales and Marketing Strategies in Seniors Housing: A Q&A with Joe Roche
The COVID-19 pandemic has likely changed the way seniors housing operators do business for some time to come, So, how do social distancing measures and a new threat to resident safety impact the sale and marketing strategies of these communities? We asked Joe Roche of The Roche Associates for answers. We’re more than a couple of months into the COVID-19 crisis, and the seniors housing industry has experienced a bit of a PR problem. Given the virus’ effect on the frail and elderly, the media’s coverage of outbreaks at communities (mostly unfair, but also sometimes fair), and some people’s comingling of skilled nursing facilities with seniors housing, what would you say to a potential... Read More »Schedule a demo
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