Ensign Group Does It Again
Perhaps The Ensign Group should hire Britney Spears to perform at its Holiday party this year, and she can sing, “Oops, I did it again.” Because that is exactly what Ensign did. Another profitable quarter notched in its belt when too many skilled nursing operators continue to suffer, and it upped its earnings guidance for the rest of the year, the second time it has done so this year. The skeptic would claim they just give low guidance so they can keep on upping it. We don’t really care, as long as they keep on performing as they do. The “market,” however, was disappointed because Ensign missed consensus earnings per share estimates by one penny, so the share price dropped by 4%. Ho hum.... Read More »Health Care M&A On Pace for Record Year
Despite a volatile market, healthcare investors are undeterred. Inflation, significant labor issues and declining stock value are major headwinds that should be slowing down activity, but the past few quarters have shown the resilience of the healthcare M&A market. Nearly 1,800 healthcare deals were announced through the end of September, a steep increase from the 1,560 sales reported in the same period in 2021. This year will break records if activity continues at this pace. Investors and dealmakers announced 686 deals in the third quarter, representing a 5% drop from the 731 transactions reported in the second quarter. With all the headwinds hitting the industry, we expected a more... Read More »Health Needs of Seniors in Seniors Housing Communities
At the recent Fall NIC Conference, NORC at the University of Chicago presented the findings of a recent study of seniors housing residents. We are sure Medicare Advantage plans have combed through the data, as much of it was an eye-opener, even for us. The study cohort included more than 250,000 seniors housing residents and more than 325,000 in nursing homes enrolled in fee-for-service. In seniors housing, the residents were pretty evenly split among majority IL (32.5%), majority AL (31.6%) and CCRC/LPC (30.0%). The most shocking discovery was that CCRC/LPC residents have an average of 12.2 chronic medical conditions. In theory, these are among the healthiest of residents in senior living... Read More »Spotlight on Senior Care M&A
The seniors housing and care industry has witnessed incredible growth so far in the 21st century, surviving the Great Recession and the COVID-19 pandemic among other bumps along the way. Despite the headwinds, investors continue to pour money into the space in search of higher returns and to capitalize on demographic trends. But post-pandemic, where did valuations settle across the senior care sectors and why? Check out the just-published special report, Spotlight on Senior Care M&A to see the latest M&A stats and market analysis. Read More »CCRCs Continue to Outperform
Investment banking firm Ziegler just came out with its quarterly analysis of the CCRC (LPC) market, using the NIC MAP census data. For the 99 NIC primary and secondary markets, CCRC average census increased by 50 basis points to 86.0% from the first to the second quarter. This is about 690 basis points higher than non-CCRCs. The analysis covers 1,097 not-for-profit and for-profit CCRCs, both entrance-fee and rental in the 99 markets. We do not know about the other 900+ CCRCs in the country. Occupancy growth since the bottom of the pandemic has been slower in CCRCs than the rest of seniors housing mostly because census did not fall as much during the pandemic, with a relatively healthier... Read More »Schedule a demo
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