Home Health Giants Find Partners in Speeding Skilled Nursing Diversions Amid COVID ‘Fear Factor’

Home health operators aren’t the only players in post-acute and long-term care looking to capitalize on a weakened skilled nursing sector: As health systems and managed care insurers look to adapt their offerings to the post-COVID tastes of their patients, home health providers may find themselves with significant regulatory and payment tailwinds as they work […]

Walker & Dunlop’s $172M Skilled Nursing Financing; Aspen Skilled Healthcare Picks Up CCRCs

Walker & Dunlop this week announced the completion of $172 million in financing for a seven-building skilled nursing portfolio across the Northeast and the Midwest. Four of the properties were refinanced through the Department of Housing and Urban Development’s (HUD) 232/233 program, with the remaining three undergoing HUD 232 loan modification. The portfolio consisted of: […]

$257M False Claims Act Judgment Leads to Six-Entity Nursing Home Bankruptcy

Six skilled nursing entities — spanning operations, management, and rehabilitation — this week filed for Chapter 11 bankruptcy after the reinstatement of a multimillion False Claims Act (FCA) judgement against them last year. The entities themselves are part of a group of corporate affiliates of major nursing home operator Consulate Health Care, but the bankruptcy […]

Nursing Home Giant Genesis to Restructure, Voluntarily Delist from NYSE as ReGen Steps in with $50M Stake

Genesis HealthCare (NYSE: GEN) on Wednesday announced that it will voluntarily remove itself from the New York Stock Exchange — while also landing a $50 million capital infusion from ReGen Healthcare as part of an ongoing restructuring effort. ReGen’s $50 million debt investment gives the company — a health care turnaround firm — a 25% […]

Welltower to Largely End Relationship with Genesis, Bolster ProMedica Joint Venture in $880M Deal

Welltower Inc. (NYSE: WELL) late Tuesday announced that it will largely end its relationship with troubled nursing home giant Genesis HealthCare (NYSE: GEN), with its joint venture health system partner ProMedica picking up some of the buildings — while also divesting 25 properties acquired through its 2018 ProMedica JV. The Genesis exodus spans 51 assets, […]

COVID Hasn’t Caused Flood of Distressed Nursing Home Transactions, But Deals Reflect Lower Bed Counts

With federal relief propping up nursing home operations during the ongoing COVID-19 crisis, the mergers-and-acquisitions market has remained relatively stable over the past year — but buyers and sellers are already starting to adjust to a world where the full licensed bed capacity is more of a pipe dream than a realistic benchmark. Amy Sitzman, […]

Matros: Home Health Shifts ‘A Good Thing’ Ahead of Looming Capacity Crunch, But Nursing Homes Still Vital

Whether or not home health providers can maintain the volume they siphoned away from skilled nursing facilities during the pandemic has emerged as a top question for policymakers and financial analysts alike. A permanent shift from SNF to home could portend financial and operational chaos for a sector already battered by COVID-19, the thinking goes, […]

NHI: Nosediving COVID Case Counts in Nursing Homes Heartening, But Not Yet Leading to Stronger Census

The vaccine rollout at nursing homes and other congregational care settings has brought rapid and substantial declines in COVID-19 case numbers, but leaders at a top landlord in the sector say the desperately welcome trend has yet to have an impact on persistently low occupancy. “Fortunately, the rollout of the vaccine to over 94% of […]

Private Equity Ownership of Nursing Homes Leads to 10% Higher Risk of Death, 11% Increase in Spending: Study

Private equity ownership of nursing homes has resulted in a variety of negative outcomes, including an elevated risk of death for short-term Medicare patients, higher rates of antipsychotic drug use, and increased taxpayer spending on episodes of care, a new study concluded. Published as a National Bureau of Economic Research working paper, the February 2021 […]

Nursing Home Management Firm CareOne Pays $700K to Settle False Claims Act Allegations

A management company that provided financial back-office services to health care facilities agreed to pay $714,996 to resolve allegations that it violated the False Claims Act — specifically related to claims for reimbursement of Medicare bad debt — acting U.S. attorney Rachael A. Honig announced this week. The federal government through the U.S. Department of […]

LTC Properties Upbeat on Genesis Leases, Predicts Decline in Home Health Diversions from SNFs

Executives at LTC Properties (NYSE: LTC) on Friday struck an upbeat tone about some of the top pressure points for health care real estate investment trusts (REITs) amid the ongoing pandemic, including a troubled tenant and the significant shift of patient volume to home health. Genesis HealthCare (NYSE: GEN), the nursing home giant that spurred […]

Nursing Home Margins, Number of Five-Star Facilities Were on Rise Before COVID-19

The national nursing home landscape saw multiple positive operational trends prior to the onset of the COVID-19 pandemic, including a slight gain in margins and an increase in the proportion of top-ranked facilities, according to a new national benchmarking report. The national average nursing home net income per patient day rose from just two cents […]

Bank Leumi, Prestige Care Team for $23.5M Rehab Deal; Hill Valley’s $21.7M, Three-Building Growth Move

Bank Leumi USA this week announced the completion of a $23.5 million deal covering four skilled nursing facilities and one assisted living property operated by Prestige Care. The family operator used the cash to refinance an existing asset-based loan revolver and a real estate term loan, with the goal of boosting liquidity and funding future […]

Managed Care Companies Take Lead on PDPM Denials — But CMS Could Step Up Scrutiny During 2021

Over the course of 2020, as skilled nursing facilities battled the COVID-19 pandemic, the Patient-Driven Payment Model (PDPM) was one of the bright spots for operators, allowing them to secure payments for caring for the clinical needs of patients at a time when those needs grew markedly more complex. The Centers for Medicare & Medicaid […]

Nursing Home Operator PruittHealth Reports $137M Revenue Drop in ’20 — But 22% Boost in Home Health Demand

PruittHealth, a major nursing home operator across the Southeast, took a $137.2 million revenue hit during the COVID-plagued year of 2020 — but saw a significant increase in demand for home health services. That income loss includes the operator’s skilled nursing, therapy, pharmacy, and hospice business lines, according to a new report released this week, […]

COVID-19 Shows Need for New Nursing Home Model — But That Won’t Happen Without New Operators, Investors

Operators of skilled nursing facilities for years have dealt with the aging post-acute and long-term care infrastructure across the U.S., coping with problems ranging from multi-resident rooms to poor plumbing to outdated building design. During the COVID-19 pandemic, it became apparent that poor building design was more than a headache for cash-strapped operators; in the […]

CareTrust: Home Health Diversions Will ‘Recalibrate’ With Time, But Uneven Post-COVID Recovery Lies Ahead

Executives at CareTrust REIT (Nasdaq: CTRE) expect to see hospital referrals to skilled nursing facilities eventually return, with executives arguing that a recent spike in diversions to home health is unlikely to become permanent. Eventually, the referral destinations for post-acute patients are going to stop coming out so lopsidedly in home health’s favor, according to […]

Welltower Takes $83M Write-Down on Genesis Loans as Long-Term Nursing Home Outlook Remains Unclear

Welltower Inc. (NYSE: WELL) this week announced another major write-down related to troubled nursing home tenant Genesis HealthCare (NYSE: GEN) as the provider’s future — along with the outlook for the rest of the sector — remains unclear. During the fourth quarter of 2020, the Toledo, Ohio-based real estate investment trust (REIT) wrote down $83 […]