While the home has emerged as the care setting seniors most prefer over the course of pandemic, with some older adults exploring new ways towards that path, there continue to be significant barriers to that becoming a reality for many. Nursing homes may still be able to separate themselves from home-based care by the higher […]
Category: Finance
The Biden administration is working toward pushing its value-based care agenda on nursing homes by way of state Medicaid programs, a daunting task with no two programs the same, and reimbursement rates varying widely based on state. As evidenced in reforms announced in February, federal agencies are also focused on tying staffing-related measures to value-based […]
While price per bed valuations soared in the skilled nursing space in 2021, some investors in the market don’t see nursing homes as hot of an asset in 2022, especially compared to other health care properties. “High-acuity health care facilities such as skilled nursing facilities and wellness centers will have reduced demand in 2022 compared […]
As the White House looks to hold nursing homes more accountable for the care they provide, signaling out private equity ownership as part of the problem, the Government Accountability Office is reportedly expected to release a report in the fall detailing its ongoing investigation into nursing home ownership. The investigation, in part, surrounds how much […]
The skilled nursing and seniors housing transactions market may have cooled down a bit at the end of the first financial quarter after a record-breaking end of 2021. The number of publicly announced deals in the first quarter of 2022 fell to 127 deals compared to 140 transactions in the previous quarter – amounting to […]
Operators are feeling pressure from all sides as the proposed payment rule for the nursing home industry dropped on Monday, which unveiled a 4.6% cut to the Patient-Driven Payment Model (PDPM) and 3.9% increase to Medicare payments for the sector. The news comes at a time when SNFs are facing a historic workforce shortage, rising […]
A slate of newly proposed reforms laid out by the Biden administration in recent weeks demonstrate a clear focus on value-based care moving forward for nursing homes. Designed to improve patient outcomes by awarding financial incentives or penalties based on 30-day hospital readmission rates, the SNF VBP program, combined with the growth of the I-SNP […]
The Ensign Group Inc. (Nasdaq: ENSG) announced on Tuesday that it increased its credit facility by $250 million, reaching an aggregate of $600 million for the skilled nursing operator. The borrowings are supported by a lending consortium arranged by Truist Securities. The new facility matures on April 8, 2027, and includes a $400 million incremental […]
The skilled nursing industry is facing three major threats at this point in the pandemic: lawsuits tied to Covid cases, the continued staffing shortage and limited access to capital. That’s according to Cecily Dumas and Scott Prince of Cleveland, Ohio-based law firm BakerHostetler and Jerry Seelig, founder and CEO of consulting firm Seelig+Cussigh HCO in […]
Running in tandem with federal efforts to provide adequate staffing levels and better pay to certified nursing assistants (CNAs), some state officials have undergone efforts looking to achieve similar results. Illinois House Bill (HB) 246 is making its way to Gov. JB Pritzker after state legislators on Thursday unanimously approved a $700 million increase to […]
IntelyCare raised $115 million in its latest Series C funding round, with plans to expand its footprint in the long-term care space. The most recent funding values the software provider at $1.1 billion, according to a news release announcing the funding raise. IntelyCare’s announcement comes at a time when the skilled nursing industry, and the […]
The way care is financed, delivered and regulated in the nursing home sector is both ineffective and inefficient, a new report from the National Academies of Sciences, Engineering, and Medicine found, as significant strategic investment will be needed to improve what has become a fragmented and unsustainable system. The wide ranging report called for swift […]
Skilled nursing providers are looking for ways to get ahead as the long-term care industry increasingly moves toward a value-based payment world. Operators who have taken the leap to create their own in-house insurance plans are starting to see the move pay off in a big way, both on the clinical and financial side of […]
Chartwell Retirement Residents announced last week it will transition 16 of its Ontario long-term care homes, totaling 2,418 beds, to AgeCare Health Services and Axium Infrastructure Inc. for $446.5 million. The deal equates to $358,456,029.93 in American currency. Chartwell’s management platform, which serves these 16 homes and another six homes with 866 beds, will be […]
As the Centers for Medicare & Medicaid Services unveils its proposed payment rules for the coming fiscal year, some in the industry feel that what has already been issued for inpatient rehabilitation facilities (IRFs), inpatient psychiatric facilities (IPFs) and hospice providers does not “bode well” for the skilled nursing industry. A Mizuho Securities analyst note […]
Park Ridge, Ill.-based Ignite Medical Resorts is entering Texas for the first time as the operator of four skilled nursing facilities acquired by LTC Properties (NYSE: LTC) in a $52 million deal. “We’re looking for strategic growth that fits our vision. For this project, it was for facilities in four major metro areas, all close […]
Identifying the difference between nursing home landlords, lenders and operators, and even setting new requirements for each, may help ensure profits better match quality in the space moving forward. That’s the argument being put forward by some academic researchers who have focused on nursing home ownership structures. And their arguments are helping to inform federal […]
Some operators and state-led initiatives have stepped beyond stopgap measures to help with staffing shortages, taking pauses in Covid surges to create long-term solutions to meet future needs in skilled nursing. Minnesota, for one, surpassed its goal of recruiting 1,000 certified nursing assistants (CNAs) to the state. The Next Generation of Nursing Assistant initiative was […]
Capital providers dealing in the skilled nursing space are pushing back on the White House’s position on institutional capital, stressing the need for it in the sector. While institutional capital is critical to many of the key players in the space, some capital providers say newer owner-operators will have a hard time getting the necessary […]
Skilled nursing operators may soon face disastrous Medicare funding cuts, American Health Care Association President and CEO Mark Parkinson warned on Thursday. The Centers for Medicare & Medicaid Services (CMS) is expected to release its latest proposed payment rule for skilled nursing providers in the coming weeks. While the nursing home sector has successfully fought […]
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