Leaving Money on the Table: Nursing Home Appraisals, if Adopted by Legislators, Could Bolster Medicaid Reimbursement

As so many in the nursing home space focus on Medicaid reimbursement, others are taking a closer look at improving rate setting methodology and how it can be optimized for facilities. Medicaid rates are in part influenced by fair rental value, which is determined after experienced housing experts perform an in-depth market valuation on the […]

Walker & Dunlop Brokered $65.7M in HUD loans for 7 Facilities; Benchmark Commercial Sold Louisville Skilled Nursing Facility for $9.85M

Walker & Dunlop, Inc., based in Bethesda, Maryland, announced on Tuesday that it successfully facilitated $65.7 million in HUD loans for seven skilled nursing facilities and memory care centers across Illinois and Wisconsin between October 2023 and February 2024. The Midwest FHA Finance team at Walker & Dunlop, led by Joshua Rosen, Brad Annis, and […]

Data Analysis Finds Troubling Quality at Midsized, For-Profit Skilled Nursing Chains

Midsize for-profit nursing home chains, which make up about 40% of the industry, are at the center of investigations by news organizations whose analysis of new government data shows troubling statistics for quality. The Conversation is the latest to publish its analysis scrutinizing for-profit nursing home ownership. The Conversation’s article published Thursday unveils instances of […]

[UPDATED] Skilled Nursing Giant PACS Group Files for IPO as It Looks to Expand Footprint

PACS Group filed for an initial public offering with the Securities and Exchange Commission (SEC) on Wednesday, citing focus on growth plans in its filing. “As we continue to grow, we intend to explore additional purchases of real-estate assets, through purchase options or right-of-first refusals in existing leases, as well as acquisitions and de novo […]

Nursing Homes See Highest Cost Increase in 2023 Driven By Worker Shortage

Inflation and the shortage of skilled care workers were the main drivers of increases in the rising costs of long-term care services in 2023, with skilled nursing rooms posting the highest increase. Genworth’s latest Cost of Care Survey released Tuesday found that since 2022, the national annual median cost of a semi-private room in a […]

Abruptly Closed St. Louis Nursing Home Issued More Fines for Safety, Admin Violations

The largest nursing home in St. Louis, which was shuttered abruptly in December, is now facing more fines linked to safety and administration requirement violations when moving residents out. The Centers for Medicare & Medicaid Services (CMS) is fining Northview Village directors Makhlouf and Lorraine Suissa and Eric Rothner more than $18,000 per day, totaling […]

Inside Successfully Obtaining Loans for Nursing Home Projects Amid Harsh Financing Environment

A large influx of new patients expected in less than a decade means that nursing home operators must start thinking about bolstering infrastructure along with improving the workforce. And yet, nursing home loans are often the most difficult to obtain across the health care continuum. Knowing how community ties can help providers obtain capital, and […]

‘Feel Like a Risk’: Nursing Home Operators Appear To Reduce Wage Increases Compared to 2023

Labor costs continue to be top of mind for nursing home operators as the workforce shortage persists and operators anticipate the finalized version of the federal minimum staffing rule. Operators reported average wage increases for their employees of 4.43% in 2023, dropping to 3.64% thus far for 2024, according to the Ziegler CFO Hotline survey […]

Final Rule on Nursing Home Staffing and Transparency Moves To Next Stage Ahead of Biden’s State of the Union

Ahead of President Biden’s State of the Union address Thursday, a final rule mandating staffing limits and calling for greater Medicaid payment transparency was submitted for regulatory review to the Office of Management and Budget (OMB). And while in addressing the joint session of Congress, Biden failed to mention the reforms contained in the rule […]

With PACS as Partner, CareTrust Acquires 3 Skilled Nursing Facilities in Texas, Missouri for $55M

CareTrust REIT (NYSE: CTRE) announced Wednesday the acquisition of three skilled nursing facilities for approximately $55.6 million across Texas and Missouri.  The portfolio consists of 210 skilled nursing beds and 24 assisted living units, and will be added to CareTrust’s existing master lease with affiliates of PACS Group, which have been operating the facilities for […]

Skilled Nursing Sector Shows Investment Promise Amidst a Shrinking Supply of Beds

The latest research report from Marcus & Millichap for the first half of 2024 reveals promising trends for skilled nursing facilities, highlighting their resilience amidst a shrinking supply landscape. Compiled with help of NIC Map Data Service, the report from the commercial real estate brokerage firm released Tuesday underscores the positive net absorption in the […]

More Than Two-Thirds of Nursing Homes Fear Closures as Almost All Cite Challenges Recruiting Staff

Despite ongoing investments from operators, the nursing home industry is struggling to rebuild its workforce and recover from the pandemic. Meanwhile, operators are concerned that the federal minimum staffing proposal, once finalized, will make operational challenges worse even as nursing homes limit admissions and are concerned about closures. Such findings were outlined in the American […]

Ensign Acquires 3 Skilled Nursing Facilities Across Kansas, Colorado

Ensign Group (NASDAQ: ENSG) announced Monday its acquisition of three skilled nursing facilities spanning Kansas and Colorado. The transactions, including both real estate and operations, were finalized on March 1, 2024. Ensign affiliates acquired Park Post Acute in Parker, Colorado, which has 135 beds, and Oakwood Care and Rehabilitation in Lakewood, Colorado, with 170 beds. […]

How CMS Can Improve Visibility on Nursing Home REIT, Private Equity Ownership

Even as the Biden administration strives to crack down on confusing ownership structures in the nursing home industry, it appears there are gaps in federal data collection and limited visibility into ownership. Only one-third of private equity (PE) and fewer than one-fifth of real estate investment trust (REIT) investments in the nursing home space are […]

Heritage Operations COO: New Chapter Starting After Cutting Nursing Home Footprint in Half

About a year ago, Illinois-based Heritage Operations Group significantly reduced its skilled nursing footprint, divesting almost half of its 44 skilled nursing facilities and an assisted living facility. At the time, the company cited added challenges posed by staffing shortages and increased staffing costs amid a challenging economic climate. But a year makes a difference. […]

Sabra’s Matros Says No ‘False Guardrails’ Around M&A Pipeline, Potential Skilled Nursing Deals

The year ahead for Sabra Health Care REIT (Nasdaq: SBRA) presents a “terrific” opportunity for improved margins and potential dealmaking, with eyes on multiple asset classes, according to Sabra CEO Rick Matros. While the California-based real estate investment trust (REIT) has focused in the past couple years on diversifying its portfolio – namely adding behavioral […]

What the $105M Portopiccolo Financing from Northwind, CareTrust Signals About Nursing Home Sector Stabilization

Northwind Group, a real estate private equity firm and debt fund manager, announced multiple significant investments in the skilled nursing sector earlier this month in a move that underlines a favorable environment for deal making for large players. A portfolio of nursing homes owned by The Portopiccolo Group benefited from the provision of credit facilities […]

Nursing Home Reimbursement Pressure ‘Flat Out Profound,’ Necessitating Innovative Models

It’s becoming harder than ever to operate standalone skilled nursing facilities amid inadequate government funding, and innovative business models that deal with challenges, especially those related to staffing, have and will be borne from necessity. “Innovative models are going to present themselves in some way to stop this train,” said Dan Hermann, president and CEO […]