Senior Care Market Peak and Bottom
The private market valuation may have peaked, but the public market may have seen its low. As you know, I have been vocal about the acquisition market being at a peak for most of this year, at least when it comes to pricing. It just seems hard to imagine cap rates declining further with a rate hike looking like a reality….at least, according to consensus thinking. But the public markets are a different story. It has been a real roller coaster, but mostly down. But, and this is a big but, the downward spiral was so bad we just may have hit bottom. And November 13 is looking like the bottom, at least for now. On the provider side, both Kindred Healthcare and Genesis Health hit new lows on... Read More »The Senior Care Pricing Disconnect
The public equity market for senior care operating companies and REITs is getting slammed, but the private investment market remains strong. The pricing disconnect continues. Public equity investors continue to slam the senior care operating companies and health care REITs. All one has to do is look at what has happened to Kindred Healthcare and Genesis Health this past week or two, when both companies dropped to new lows and have not yet recovered. Fears of reimbursement pressure, fears of OIG investigations, fears of staffing costs. All have some degree of merit, but it seems like an overreaction to me. Just look at the private market, where both acquisition pricing and demand remain... Read More »Senior Care Market In Confused State
Stocks are gyrating wildly, sometimes for good reason and other times not so much. Okay, I have to admit that I am confused now. When Brookdale came out with poor second quarter results, its stock tanked, as it should have. But then Capital Senior Living came out with a very upbeat quarter, and its stock jumped 10%, as it should have, but then dropped by 15% over the next several days, for little reason, other than perhaps in sympathy with Brookdale shareholders. Genesis Health announced a good quarter, and its stock jumped by 10%, as it should have, and kept on rising to a 26% gain in a week when the market as a whole tanked. Hell, it didn’t even budge when China devalued its currency. ... Read More »Kindred Completes Gentiva Acquisition
With $7.2 billion in annual revenues, Kindred Healthcare is the largest post-acute provider in the country, but now the hard work begins. This past Monday, Kindred Healthcare closed on its $1.8 billion acquisition of home health and hospice provider Gentiva Health Services. With this completed, Kindred is entering a pivotal period in its corporate life because it has all the parts to run a true nationwide post-acute company, from hospital discharge to the home. It is the largest LTAC and inpatient rehab operator in the country, the largest provider of rehab, home health and hospice services in the country, and one of the largest subacute and skilled nursing providers. You might think that... Read More »Schedule a demo
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