HCR ManorCare Continues to Fight
We are not sure what HCR ManorCare’s end game is in its battle with landlord Quality Care Properties, which owns the vast majority of its properties. HCRMC recently filed a motion in court to dismiss certain claims in QCP’s receivership complaint. We are not sure what leg they have to stand on. The provider is so far behind on its contractual rent payments that it is a wonder that QCP has not done what other REITs have done when their tenants have not been able to pay the rent. On January 25th, HCRMC did not pay the reduced rent of $14 million that was due. The past dues are simply piling up, and while we understand there is a difficult operating environment, it does not mean you can... Read More »
Update On Consulate Healthcare’s Legal Affair
In major news for the skilled nursing industry, the $347.86 million judgment against affiliates of Consulate Healthcare was vacated in its entirety by the United States District Court, Middle District of Florida earlier this week. This was basically a Medicare “fraud” case. The judge ruled that the plaintiff’s assertions that a “handful of paperwork defects (for example, unsigned or undated documents) compel the decisive inference that the defendants never provided the therapy evidenced by the paperwork and billed to Medicare” was just plain wrong. To boot, the government continued to pay the defendant even though the government knew there were some disputes between the two sides regarding... Read More »
HCP In Hot Water Again
We are sure that management at HCP, Inc. is happy that they spun out the HCR ManorCare assets to a new REIT, since they have not had to deal with the continuing rent shortfall, which started when HCP still owned the assets. But leveraged investments of any kind seem to be taking their toll across the board. From July 2012 through May 2015, HCP funded a total of $257 million under a collateralized mezzanine loan facility with Tandem Health Care. This loan matures in nine months and has a weighted average interest rate of 11.5% (ouch). In tandem with this loan, there is a $257 million syndicated senior loan that matures in six months. Through sales of various SNFs, most of the net proceeds... Read More »
National Healthcare Corporation Holding Its Own
With all the media attention on financial problems within the skilled nursing sector (and we are guilty of this as well), there are some companies which are doing okay in this environment. One is National HealthCare Corporation, a publicly traded company that keeps very quiet but, with a market cap of $989 million, is one of the largest public senior care companies. For the three months ended September 30, 2017, its average Medicare rate has increased by $6.00 to $459.63 year over year, while its Medicare patient days increased marginally. Meanwhile, it managed care average daily rate (which we assume to be mostly Medicare Advantage) remained flat while the total managed care patient days... Read More »Schedule a demo
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