Assisted Living M&A Market
Despite many headwinds, the assisted living acquisition market remains vibrant with high prices and no shortage of buyers. Find out how they are dealing with the issues of aging properties, census and labor in this dynamic webinar. Prices paid in the assisted living M&A market remain high, despite census, labor and demand headwinds. Obviously, low interest rates and plenty of equity capital have helped maintain current pricing levels. But buyers, and sellers, are facing many issues right now, and into the future. Despite all the new development during the past five or more years, the acquisition market is filled with older assisted living communities, and the ones built in the 1990s... Read More »
Brookdale Settling in for the Slog
Now that Land & Buildings has ended its proxy fight to get former HCP, Inc. CEO Jay Flaherty on Brookdale Senior Living’s board of directors, it is apparent that Brookdale management can now face the long, tough slog to enhance operations, census and cash flow, the old-fashioned way. Unfortunately for shareholders who invested at much higher prices than the current levels, the wait may be a long one to get back up to breakeven. It is those newcomers to the stock that may get impatient, again, for management to do something as the share price heads higher. Right now, at $8.48 per share, it is 41% higher than at the beginning of June, and 15% higher than three weeks ago. Progress. We... Read More »
The “Recession-Resistant” Aura of Assisted Living
There is a lot of chatter about the potential for a recession hitting the U.S. economy soon. You’ve seen the metrics on slowing growth, both domestically and even more so globally, and the impact that tariffs have had on supply chains, manufacturing and investment. And the uncertainty of the 2020 election will not help growth in the next year, barring some major trade agreement with China. But if we do indeed plunge into recession, what will the impact be on assisted living? The sector was famously “recession-resistant” in the last downturn, and since nobody is predicting a financial calamity like that in the next few years, that should bode well. Assisted living values have been rising... Read More »
Therapy and PDPM
We are now one week into the new PDPM reimbursement system, and already therapist layoffs have begun. Well, we are just one week into the new Patient-Driven Payment Model (PDPM) for Medicare reimbursement for skilled nursing facilities, and already the therapist layoffs have begun. Why? Because providers are no longer paid for the amount of therapy they provide patients. The new payments will be based on patient needs, especially for higher acuity patients. So, here is my question. If the patient profile has not changed from September to October, why were patients provided with a certain number of therapy hours in September if they actually did not need that much therapy, or if the extra... Read More »
Gloves Come Off in Brookdale’s Proxy Fight
The proxy cards are in the mail to Brookdale Senior Living’s shareholders for the vote at the annual meeting, to be held on October 29, and it looks like CEO Cindy Baier has taken the gloves off. Brookdale has been fighting shareholder Land & Buildings’ nominee for a board position, Jay Flaherty, for many weeks. But now they are bringing up some of Mr. Flaherty’s past transgressions which, according to Brookdale, make “him unfit to serve as a member of Brookdale’s Board.” These transgressions include some foul play in 2011 when he was CEO of HCP, Inc., which resulted in a $101.7 million judgment against HCP, for which the court stated that HCP engaged in “fraudulent conduct with the... Read More »Schedule a demo
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