Medicaid rebasing efforts are driving dealmaking activity for the skilled nursing sector at the moment, as enhanced federal funding dries up and operators scramble to account for rising costs of care and a floundering workforce. That’s according to executives with CareTrust REIT (NYSE: CTRE). James Callister, chief investment officer , said during the company’s latest […]
Despite ongoing staffing challenges and inflationary fallout from the pandemic, skilled nursing operators are optimistic about this year – many expect occupancy rates to increase in the years ahead, along with general growth in the sector. That’s according to a Skilled Nursing News survey conducted at the end of last year, in partnership with EHR […]
Bank of America strategists point to nursing homes, among other riskier sectors, being behind more defaults in the $4 trillion municipal bond market this year. Expectations come after a 122% surge in first-time payment defaults for January 2023 compared to a year ago, according to a report published by Bloomberg on Tuesday. That translates to […]
Rising interest rates are inflicting pain on the skilled nursing sector, with tough discussions between capital providers and operators to come in 2023. But with more sophisticated operators serving higher-acuity residents than in the past, and Covid-19 changing perceptions of “stroke of the pen risk,” investors see an industry with attractive long-term prospects. “I’ve been […]
Employment in nursing care facilities grew by 4,500 jobs in January, while overall employment in health care rose by 58,000 jobs, beating the monthly average of 47,000 jobs added in 2022. Jobs increased by 8,400 positions in continuing care retirement communities (CCRC) and assisted living facilities and were up by 60,700 from year earlier levels […]
Health care labor provider ShiftMed, which serves skilled nursing operators and other provider types, announced Monday that it has raised $200 million as investors eye growth for staffing solutions amid the industry’s ongoing labor crisis. The funds will be used to expand ShiftMed’s “national footprint across all segments of the health care market,” the company […]
Following the Biden administration’s plans to end the public health emergency (PHE) on May 11, leaders at Ensign Group (Nasdaq: ENSG) are bullish that state assistance will create a soft landing. Ensign CEO Barry Port has seen operators in the sector bolstered by enhanced Federal Medical Assistance Percentage (FMAP) funding during the pandemic; this federally […]
Skilled nursing headwinds are continuing to buffet Omega Healthcare Investors (NYSE: OHI), as the real estate investment trust continues restructuring efforts. But leaders at the REIT are cautiously optimistic about what lies ahead. Analysts with Stifel shared that optimism, based on Omega’s Q4 2022 earnings results. “We believe the numbers are essentially bottoming, and that […]
In an effort to make nursing home ownership information more transparent and readily available to the public, the Centers for Medicare & Medicaid Services (CMS) started compiling ownership data on Care Compare. But, the agency’s web-based tool falls short of transparency and ease of access goals, according to a study published by the U.S. Government […]
Sabra Health Care REIT (Nasdaq: SBRA) on Thursday announced about $185 million has been received in gross proceeds since Sept. 30, 2022, including through a “sizable portfolio” of skilled nursing assets that fetched $200,000 a bed. The previously disclosed sales were “almost entirely comprised of skilled nursing investments,” Sabra said in a statement. The $200,000-per […]
The gap between current skilled nursing occupancy and pre-pandemic occupancy is “99%” due to lack of staff, and addressing the sector’s workforce crisis is clearly the top priority for 2023. That’s according to Phil Fogg Jr., president and CEO of Marquis Companies and chairman of the American Health Care Association. Milwaukie, Oregon-based Marquis owns and […]
The Ensign Group (Nasdaq: ENSG) on Wednesday announced that the company is assuming operations of 17 skilled nursing communities in California, as part of a previously announced deal with Sabra Health Care REIT (Nasdaq: SBRA). That deal involves 20 communities total, which previously were operated by North American Health Care. The properties located in Ensign’s […]
Genesis Healthcare Inc. will add 34 nursing homes in Pennsylvania to the 15 the company currently operates in the state, in addition to taking over management of four in Colorado. “This transition marks the largest expansion of services provided by Genesis and its affiliates since the organization underwent a transformation into a market model approach […]
Real estate investment trust (REIT) investment in nursing homes has been linked to an increase in some clinical staff hours per resident day – specifically a 2.15% and 1.55% percent bump in licensed practical nurse (LPNs) and certified nursing assistant (CNAs) hours, respectively. Registered nurse (RN) hours, on the other hand, decreased 6.25% in the […]
Skilled nursing is the most sought-after investment opportunity in the senior living and care sector for 2023, aside from assisted living. That’s according to JLL’s Valuation Advisory group, a professional services company specializing in real estate and investment management, which released its sixth annual Seniors Housing Investor Survey and Outlook report yesterday. The survey highlighted […]
Rising costs in all areas of running a nursing home — not just labor — are squeezing profit margins, compelling providers to adjust operations, make investments and pursue innovations in a quest for greater efficiencies. While skilled nursing facility operators try to get a grip on labor shortages, workforce costs surged by as much as […]
As the federal staffing minimum mandate proposal and study is due to be revealed in a matter of months, some state leaders are calling on the Centers for Medicare & Medicaid Services (CMS) to rethink the mandate’s “one-size-fits-all” approach. Thirteen senators across nine rural states last week issued a letter addressed to CMS Administrator Chiquita […]
The share of nursing care properties reporting an increase in the pace of move-ins in the last 30 days rebounded to 17% between Dec. 2022 and Jan. 2023, compared to 6% in previous months. However, one-fifth of skilled nursing operators anticipate it will take until 2025 or later before occupancy returns to pre-pandemic levels. This […]
Grandbridge Real Estate Capital arranged the $81 million sale of The Arlington at Naples, a 298-unit continuing care retirement community, to LCS. The campus is comprised 47 independent living homes, 128 independent living apartments, 42 assisted living units, 37 memory care units, and 44 skilled nursing units. The campus was opened in 2015 and is […]
The Centers for Medicare & Medicaid Services (CMS) on Tuesday announced an expansion to certain accountable care initiatives in 2023, doubling down on efforts to have all patients with traditional Medicare in an accountable care relationship by 2030. More than 700,000 health care providers, including nursing homes, will participate in at least one of three […]
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