S&P Warns of ProMedica Downgrade in Wake of ManorCare Acquisition

Standard & Poor’s last week warned that ProMedica Health System’s acquisition of struggling skilled nursing chain HCR ManorCare may lead to a credit downgrade by the end of the summer. While asserting that the non-profit chain still has an A+ rating for its long-term debt, S&P expressed concerns about the way ProMedica funded the transaction, […]

CMS Finalizes New Skilled Nursing Payment Rules, Predicts $820M Funding Boost

The Centers for Medicare & Medicaid Services (CMS) on Tuesday finalized its skilled nursing payment updates for fiscal 2019, formally enshrining the Patient-Driven Payment Model (PDPM) and other changes in a final rule. Under the finalized proposal, the PDPM — which will see therapy payments based increasingly on the complexity of patients’ clinical needs, and […]

CMS Hits 1,400 Nursing Homes with One-Star Reviews Over Staffing Concerns

Less than a month after a New York Times story revealed concerns about insufficient nursing home staffing levels, the Centers for Medicare & Medicaid Services (CMS) handed out nearly 1,400 one-star reviews. Last week, when CMS updated its Five-Star Quality Rating System for nursing homes, 1,387 facilities received one-star ratings for staffing coverage, according to […]

Welltower, ProMedica Close on $4.4B QCP-ManorCare Deal

Just one day after shareholders approved Welltower Inc.’s (NYSE: WELL) acquisition of Quality Care Properties (NYSE: QCP), the rest of the megadeal dominoes fell late Thursday. The Toledo, Ohio-based real estate investment trust (REIT) announced that it had closed on its joint-venture purchase of QCP’s real estate with non-profit hospital system ProMedica. In the same […]

Sabra Takes Proactive Approach to Skilled Nursing Data with PointRight Partnership

Sabra Health Care REIT (Nasdaq: SBRA) last week announced a strategic partnership with health care data analytics firm PointRight, in a move the companies are describing as a more proactive approach to monitoring individual skilled nursing facility performance. Under the agreement, tenants of Sabra-owned nursing homes will be able to use PointRight’s data software for […]

Orianna Strikes Back at Omega Over Terminated Restructuring Deal

Orianna Health Systems fired back at landlord Omega Healthcare Investors (NYSE: OHI), claiming that the real estate investment trust’s (REIT) decision to terminate a restructuring deal will prove detrimental to both parties. “Orianna is disappointed by Omega’s actions, which we believe will only cause delay in finalizing Orianna’s reorganization and impair the recovery ultimately realized […]

Omega Pulls Plug on Restructuring Agreement with Struggling Orianna Skilled Nursing Chain

Omega Healthcare Investors, Inc. (NYSE: OHI) has pulled out of a proposed restructuring agreement with troubled tenant Orianna Health Systems, citing frustration with the process and a desire to protect its shareholders. The Hunt Valley, Md.-based real estate investment trust (REIT) said Monday that Omega will terminate its participation in the deal effective July 25. […]

Sabra Enters into Skilled Nursing Data Partnership with PointRight

In a skilled nursing era where success is increasingly defined by the volume and accuracy of data, a major real estate investment trust (REIT) in the space on Tuesday announced a partnership with a leading health care analytics firm. The Irvine, Calif.-based Sabra Health Care REIT (Nasdaq: SBRA) will begin using three data products from […]

QCP Clears Up Investor Objections, Welltower Deal Vote Remains on Track

Quality Care Properties (NYSE: QCP) last week announced steps to clear up a pair of lawsuits surrounding its impending acquisition by fellow real estate investment trust (REIT) Welltower Inc. (NYSE: WELL). The two class-action lawsuits — Sanderson v. Quality Care Properties and Kent v. Quality Care Properties — alleged that the REIT violated the Exchange […]

Skilled Nursing Facilities Rank Low on Operators’ Investment Wish Lists

Skilled nursing facilities lag far behind home health and other long-term care settings among providers’ investment outlooks, according to a new survey of major health care providers. Just 12% of organizations surveyed by consulting and advisory firm BDO said they were making investments in skilled nursing care as part of their two-year plan to 2020 […]

Ripples of CVS, Amazon Deals Could Eventually Reach Skilled Nursing

The recent megadeals involving popular consumer brands and health care giants haven’t touched skilled nursing yet, but the moves are sending ripple effects through the industry as a whole — and SNF providers would be wise to listen up. When CVS acquired insurance giant Aetna and Amazon teamed up to form a health care company with […]

‘Big Enough to Matter’: Finding the Sweet Spot of Skilled Nursing Scale

If there’s been one overarching philosophy in skilled nursing over the past year, it’s been the rise of regional: the idea that major chains aren’t nimble and and flexible enough to weather the regulatory changes and financial pressures that have gripped SNFs. It’s a theory that has been borne out by reality: Kindred Healthcare (NYSE: […]

How Skilled Nursing Providers Can Win Under Value-Based Purchasing

Skilled nursing facilities have until October to prepare for the new Value-Based Purchasing (VBP) model, and the stakes are high: Starting this fall, SNFs will automatically lose 2% of their Medicare funding, which they can earn back by hitting certain key quality benchmarks. Providers that have already participated in risk-based accountable care organizations (ACOs) will […]

Bundled Payment Lessons Still Relevant for Skilled Nursing Providers

In a post-acute landscape dominated by the rise of Medicare Advantage and the looming changes to therapy payments, the Bundled Payments for Care Improvement (BPCI) program has fallen somewhat by the wayside. That’s partially because post-acute providers — including skilled nursing operators and home health agencies — can no longer be episode initiators under the upcoming BPCI […]