Holiday Weekend Must-Reads: Genesis Outlook, IL Governor’s SNF Stay
You’ve made it to the end of the week before a long holiday weekend, but before you go, take a look at some of the top stories from the nursing home world that didn’t make it to Skilled Nursing News.
But first, a quick reminder that SNN’s headquarters in Chicago will be closed on Monday, January 15 in observance of Martin Luther King, Jr. Day. We hope you have an enjoyable holiday weekend, and that you take a minute to reflect on the ways Dr. King helped make the United States a better place — and the steps that we still need to take to make sure our nation is free, fair, and just for all people.
We’ll be back on Tuesday, January 16 with our regular morning e-mail and coverage of the skilled nursing industry. See you then!
Illinois Governor Spends Week at Vets Home
Illinois Governor Bruce Rauner spent the past week staying at the troubled Illinois Veterans Home in Quincy, where 13 people have died of Legionnaires’ disease over the last two and a half years.
Families of 11 victims have sued the state, with a report from Chicago public radio station WBEZ thrusting the facility into the regional and national spotlight.
After a stay in which he played Connect Four with residents and used a communal shower, according to the Chicago Sun-Times, Rauner said critical upgrades to the home’s water systems would be coming within a matter of weeks.
“I’ve drunken the water from the sinks, as well as other sources,” Rauner said, according to the Sun-Times.
The first-term Republican governor is up for reelection in 2018. He currently faces Democratic opposition from billionaire J.B. Pritzker and Chris Kennedy, son of former U.S. senator Robert F. Kennedy.
Genesis Presents at J.P. Morgan Healthcare Conference
Genesis Healthcare, Inc. (NYSE: GEN) gave investors a peek into its post-restructuring future, predicting increases in both its fixed charge and lease coverage ratios in a presentation at the J.P. Morgan Healthcare Conference in San Francisco.
Once its major restructuring initiative with top landlords Welltower, Inc. (NYSE: HCN) and Sabra Health Care REIT, Inc. (Nasdaq: SBRA) is complete, the Kennett Square, Pa.-based provider expects to save between $80 million and $100 million — $54 million in decreased rent, and $26 million to $46 million in savings related to reduced interest expenses and amended debt terms.
As previously announced, Genesis projects an increase in fixed charge coverage from 1.1 times to 1.3 times, and a lease coverage boost from 1.3 times to 1.5 times.
The presentation also emphasized Genesis’s higher occupancy rates relative to other players in the industry, coming in at 84.6% in the third quarter of 2017 — as opposed to 75.7% for the Ensign Group (Nasdaq: ENSG). The overall national average occupancy rate sat at 81.6% in the third quarter, according to the National Investment Center for Seniors Housing & Care (NIC).
Written by Alex Spanko