Solving the Affordability and Aging Inventory Issues
Two growing problems in the senior care industry, aging inventory and a lack of middle-income/affordable seniors housing options, may actually be solved (at least, partially) with one initiative. That has been on the mind of Bill Pomeranz, Managing Director at Cain Brothers, who with the help of David Johnson, CEO of 4SightHealth, recently published his thoughts on converting aging senior living properties to affordable housing. Their main point is that the industry will have to be adaptable: adaptable to aging physical plants; adaptable to a large portion of the population that cannot comfortably afford what is being built now; adaptable providing more services and utility in a... Read More »
Capital Senior Living Hits 10-Year Low
After the earnings reports over the past four weeks, it was unclear whether the seniors housing sector had hit operational bottom or not. Unfortunately, Capital Senior Living’s share price is still trying to find a bottom. But November 19th’s low of $3.45 per share was also the lowest price in more than 10 years, when in March 2009 it hit a low of $2.36 per share. This is not what new CEO Kim Lody wants to see. It is not what shareholders are expecting to see. In March of 2013, the shares hit a peak of $27.90, and hovered below that for the next few years. Acquisition activity was strong, and some shareholders thought they should sell and not wait to see higher values. Within five years,... Read More »
SNF Providers Are on a PDPM Learning Curve
It’s been less than two months since the new Patient Driven Payment Model (PDPM) was implemented across all SNFs participating in Medicare Part A, and while no one can make definitive conclusions on the results and success of the program yet, some consistent themes have already emerged according to Zimmet Healthcare’s PDPM Reimbursement Analysis for the month of October. In the lead-up to October 1st, the consensus largely was that PDPM would be a windfall to some SNFs, particularly those caring for high-acuity, medically complex patients whose conditions, and the extra work that comes with them, would finally be recognized by CMS, and reimbursed. To them, the change was far better than... Read More »
Recent Congressional Testimony
Skilled nursing gets hammered, again, in Congressional hearings, but they avoid the biggest problem: lack of funding. So, did you think I was going to talk about the impeachment hearings? No way. That would be too easy. I’m talking about hearings on the cost of caring for the elderly. Of course, a few of the people testifying had very little positive to say of nursing facilities and the quality of care. But what struck me as odd was that there was not one representative of the skilled nursing industry there. You would think that a large chain CEO might have been invited, or perhaps Mark Parkinson of the American Health Care Association. Maybe they were, but I kind of doubt it.... Read More »
Capital Senior Living Stock Spreads
One day this week the spread between the bid and the ask for Capital Senior Living’s shares seemed way too wide, which got me thinking. I was a little surprised yesterday morning when I checked on the bid/ask spreads for Capital Senior Living, and saw a very wide discrepancy after the market opened. There was a bid for 4,000 shares at $3.48 per share, while a seller was asking for $3.98 per share for a smaller number of shares. I had not seen such a large difference between what a buyer wanted and a seller. I checked Brookdale Senior Living, and the spread was two cents. So, I re-looked at Capital Senior Living’s third quarter earnings to see what shareholders might be concerned... Read More »Schedule a demo
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