Kindred Healthcare Sells SNF Division To BlueMountain
Kindred Healthcare announced an agreement to sell 89 skilled nursing facilities with 11,308 beds and seven assisted living communities with 380 licensed beds for $700 million, or $59,890 per bed. In today’s world, that can be considered cheap, since it is nearly 40% below the average price paid per bed in 2016, but there is more to it than meets the casual eye, since there is a group of leased facilities outside of the Ventas-owned properties that will be purchased from Ventas as part of the larger transaction. However, occupancy stands at 78%, which is below the historically low current national average of about 82%. The buyer is private equity firm BlueMountain Capital Management, LLC,... Read More »
Kindred Healthcare For Sale, Or Not
Kindred Healthcare disclosed that at least one buyer was in early talks to buy the entire company. Don’t you just love rumors? Last week, Kindred Healthcare disclosed that they were well on their way to divesting their remaining skilled nursing facilities, as planned, mostly in groups of facilities to different buyers. But we have also heard there was someone interested in the entire portfolio. Kindred also revealed that someone was in early discussions to buy the entire company. The shares jumped 15%. Now, readers may remember that we have been saying for some time now that the stock was undervalued, and that the components were worth well above the current market cap. Others do not... Read More »
Kindred Healthcare and Others Facing Labor Headwinds
Earnings season is almost over, and companies such as Kindred Healthcare, Genesis HealthCare and Brookdale Senior Living share the labor headwinds problem. Earnings season is almost over, and if there was one word coming from companies like Kindred Healthcare, Genesis HealthCare and Brookdale Senior Living, it was “headwinds.” Although there are different headwinds, one common denominator is labor, specifically its cost. A year ago, many companies were downplaying its significance. No longer. Genesis announced its earnings, and its stock dropped 16%. The Ensign Group announced, its stock also dropped 16%. Brookdale announced no news regarding a capital event and continuing occupancy... Read More »
Investors, and Congress, Ignore MedPAC
Since November’s crash, skilled nursing prices continue to rise. We sometimes wonder if the members of the Medicare Payment Advisory Commission, or MedPAC, ever get frustrated that their recommendations often go unheeded by Congress. This is certainly the case with recommendations for skilled nursing Medicare reimbursement. Last week, MedPAC recommended a Medicare rate freeze for SNFs through 2019, which Congress will surely ignore….again. Because Medicaid policy is not part of its charter, the MedPAC commissioners ignore it, even though they are keenly aware that in SNFs, Medicare payments subsidize low Medicaid payments. Medicare payment increases are usually quite small, but that... Read More »Schedule a demo
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