Medicare FFS Improper Payments Reduced By $20.7B Since 2014, But Skilled Nursing Sees 2020-21 Increase

Aggressive corrective actions taken by the Centers for Medicare & Medicaid Services (CMS) led to a $20.72 billion reduction in Medicare Fee-for-Service (FFS) improper payments over seven years, the entity announced late Monday — for skilled nursing facilities, insufficient documentation was the primary reason for improper payments. Despite an overall reduction since 2014 lauded by […]

As Stimulus Runs Dry, Mozart Healthcare Looks to Expand into New States

Following several years of strong growth after its initial launch in 2016, Mozart Healthcare took what was supposed to be a temporary year-long pause on the acquisition market in 2019 but like many companies had to change plans in 2020 due to COVID-19. Now heading into 2022, the Skokie, Ill.-based long-term care provider plans to […]

Nursing Home Construction, Transactions Up Against Procedural Backlogs

The future of skilled nursing facility construction and transactions is tied up in state licensing procedures like certificate of need (CON) approvals, with some operators at a standstill due to application backlog during the early months of the pandemic. A backup of applications, which are required in several states to build any health care building […]

Greystone Secures $25.1M in Financing for 7 Property Portfolio in Missouri; Harborview Gets $19.68M For 205-Bed Portfolio

National commercial real estate company Greystone provided $25,100,000 in bridge acquisition financing for a 582-bed seven-property portfolio in Missouri. The loan is interest only for the first two years and includes floating rate bridge financing. It features a 36-month term with two six-month extension options. Managing Directors Eric Rosenstock and Fred Levine originated the loan […]

Invesque Continues Shift Away From Skilled Nursing Assets

Invesque Inc. (TSE: IVQ.U) during its third quarter earnings call highlighted a continued shift to a majority private pay, seniors housing portfolio from when the company first announced its IPO five years ago, diminishing its skilled nursing assets in the process. When the Carmel, Ind.-based company went public in June 2016, skilled nursing made up […]

Financial Transparency Legislation May Impact Nursing Home M&A, Operations

Five states are making efforts to improve financial transparency among skilled nursing facilities, in some cases requiring financial records to be accessible to the public and in other cases dictating where revenue can go, to ensure funds are going to residents first. For some compliance experts, the timing is right to shine a light on […]

Diversicare Reports Net Loss for Third Quarter, Close to Completed Merger with DAC

Diversicare Healthcare Services (OTCQX: DVCR) published its earnings details on Tuesday, reporting a net loss from continuing operations at -$2.9 million, or -43 cents per share in the third quarter. During the third quarter of 2020, Diversicare reported a net income of $3.2 million from operations, or 48 cents per share. The Brentwood, Tenn.-based skilled […]

NHI CEO: Skilled Nursing Assets Provide ‘Blueprint’ to Stable Growth

National Health Investors Inc. (NYSE: NHI) CEO Eric Mendelsohn said its skilled nursing operators serve as a “blueprint” for long-term stability and growth at this point in the pandemic, during a third quarter earnings call late Monday. NHI’s skilled portfolio represents 32% of its annualized cash revenue, with National Healthcare Corporation (NYSE: NHC) and the […]

Providence Group Acquires Plum Healthcare, Adds 58 New Facilities to Portfolio

Providence Group has acquired California’s second-largest skilled nursing facility operator as the company expands its presence out west, the company announced this week. The deal with Plum Healthcare Group, which closed on Nov. 5 for an undisclosed sum, includes the operations of 58 total facilities — 57 nursing homes and one assisted living/independent living facility […]

CareTrust Expects Skilled Nursing Occupancy to Reach Pre-Pandemic Levels Next Summer

CareTrust REIT (Nasdaq: CTRE) expects its skilled nursing assets to return to pre-pandemic occupancy by next summer, with continued recovery from the second to third financial quarter ending Sept. 30. About 60% of the real estate investment trust’s (REIT) skilled nursing operators are “within 90% of their pre-pandemic census or better,” David Sedgwick, president and […]

Liquidity Issues Persist, But Federal and State Funding May Help, Omega Says

Operators continue to face liquidity and workforce shortage issues at this point in the pandemic, Omega Healthcare Investors (NYSE: OHI) told shareholders during its third quarter earnings call on Friday, but anticipated Provider Relief Funds (PRF) and state initiatives will offset costs when they arrive. Florida’s nearly $100 million funding initiative for nursing homes, along […]

Welltower CEO: Use of Agency Staff ‘To Dissipate’ Moving Forward as Staffing Beginning to ‘Normalize’

Despite “mediocre” bottom line results, Welltower (NYSE: WELL) CEO Shankh Mitra said he “could not be happier” with the real estate investment trust’s (REIT) third quarter overall. Mitra was also thankful the impact of the COVID-19 delta variant had a minimal impact on the REIT’s operators. “In our experience, COVID surges drive revenue down and […]

KeyBank Launches $750M Health Care Real Estate Fund with Welltower

KeyBank Real Estate Capital has established a $750 million unitranche loan program in partnership with Welltower Inc. (NYSE: WELL). The health care real estate fund will provide first mortgage financing on skilled nursing and seniors housing projects, according to a press release announcing the program. A unitranche loan blends senior and junior debt pricing and […]

Skilled Nursing Cap Rates Expected to Stay Low as Market Shows No Signs of Slowing

Commercial real estate volume has been booming this year, particularly in the most recent quarter as it surpassed $450 billion year-to-date, according to Zach Bowyer, JLL managing director. The combination of a pent up market and low cap rates continue to push pricing in the skilled nursing space. Commercial real estate volume hasn’t reached such […]

CMS Finalizes 15% Cut to Therapy Assistant Services for 2022

The Centers for Medicare and Medicaid Services (CMS) on Tuesday finalized its Calendar Year (CY) 2022 Physician Fee Schedule (PFS), confirming a 1% cut to Medicare Part B physical and occupational therapy rates, down from the proposed 2% in July, and a 15% cut for services provided by therapy assistants. CMS specified the 15% cut […]

NIC Chief: ‘Obvious Advantages’ Exist in Senior Care Industry Despite Persisting Staffing Crisis

While the long-term care industry continues to see labor shortage pressures impact day-to-day operations and, at times, hinder the ability to improve occupancy levels, the impending decline in the availability of family caregivers could present future growth for congregate care settings. “On the one hand it’s challenging to find that staff, but on the other […]

Ziegler Closes $120M Deal; Greystone Gets Bridge Loan For 6-SNF Portfolio

Specialty investment bank Ziegler announced it closed $120 million Series 2021 bonds for a group that owns and operates 14 continuing care retirement communities (CCRCs) throughout California. The CCRCs consist of 2,188 residential living apartments, 477 assisted living apartments, 161 memory support suites and 656 skilled nursing beds. The bonds will be used to fund […]

Nursing Home Utilization, Spending Down During COVID-19

A recent study from University of Pennsylvania researchers reveals that among 975,179 hospital discharges who were 65 years or older, the use of skilled nursing facilities (SNFs) noticeably declined over the course of the pandemic. SNF spending within post-acute care was also shown to have declined. As hospitalizations declined in March and April 2020, so […]