Genesis Occupancy Stabilizes, Finally
After several years of declining occupancy, operations seem to be stabilizing at the largest skilled nursing provider in the country. It has not been an easy past few years for Genesis Healthcare, or for the entire skilled nursing sector. But we always thought there would be some light at the end of the tunnel, and that nursing facilities would not go away, despite predictions of that for two or three decades. Genesis had seen its occupancy decline pretty steadily for several years. But in the 2018 fourth quarter, census actually increased by 90 basis points from the year-ago quarter, to 85.6% based on operating beds. Genesis also posted sequential and same-facility increases. The company... Read More »
Capital Senior Living Jumps
After plunging to a low of $3.82 per share after fourth quarter earnings were released, shares of Capital Senior Living are showing some bounce. We are sure the market has noticed that the C-Suite has been buying. The price is now up 26% in less than a week. Timing is everything, and the CEO added to her holdings with the purchase of 10,000 shares at $3.954 on March 7 and the CFO 5,135 shares at $3.886 the next day. Even two directors added to their holdings at the same time. I guess they all thought enough was enough. Investors always want to see insiders making purchases, especially on the price downturn, which demonstrates confidence in future performance. Activist investor Cove... Read More »
The Closing of Rural Nursing Homes
The New York Times recently wrote about the problems rural nursing facilities are having, but didn’t report on my solution. If you happened to see the front-page article in the New York Times this past Monday on the shuttering of rural nursing homes, you might be surprised that I spent more than 20 minutes on the phone with the reporter talking about some good ideas. Instead, he chose a flippant quote which really had nothing to do with the story. I spent my time trying to educate him about the industry, and then explained my solution to the problem. My solution was to turn these facilities into the central healthcare provider for the county, or a tri-county area, if they are very... Read More »
Capital Senior Living Misses the Mark, Again
As we were watching the share price of Capital Senior Living drop for several days in a row before announcing their fourth quarter earnings results, we were wondering whether something had leaked out, or whether it was the usual sell off because the company had underperformed relative to expectations for too many quarters in a row. We may never know which it was, and maybe a bit of both, but underperformance was there again. Now, we can’t shoot the messenger because Kim Lody took over as CEO at the beginning of this year and was just a Board member before that, but the results were probably worse than anyone expected. Sequential occupancy declined by a whopping 110 basis points from the... Read More »
Thoughts On NIC Conference
New programming was just what the industry needed. Fresh from three days in San Diego attending the NIC “Spring” Conference, there were some noticeable changes, other than many new faces again. At past conferences, most of the sessions had to do with real estate, valuations, operations, competition and financing alternatives. While all important, this was the first NIC where there was an unusual amount of attention to things that most people either don’t want to hear about, or just plain don’t understand. I am speaking of Medicaid managed care, in both skilled nursing and assisted living, Medicare Advantage plans in assisted living, I-SNPs and value-based care, and, of course, the new PDPM... Read More »Schedule a demo
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