Only 6% of real estate investment trust (REIT) assets are in compliance with the federal minimum staffing proposal for nursing homes, compared to the industry average of 19%. This difference is due at least in part to less nonprofit representation in REITs, BMO Capital Markets analysts said in a note on Thursday. The BMO analysts […]
BMO Capital Markets
Skilled nursing operators are sitting on capital reserves and are poised to pursue deals in the sector going forward – after being on the sidelines for much of last year with private equity buyers outbidding them. Now, these same private equity buyers are beginning to fade from the scene, and real estate investment trusts (REITs) […]
Downside risks may finally be fading with occupancy for skilled nursing facilities showing improvements in June. That’s the view according to BMO Capital Market analysts, who noted recent occupancy data put out by the Centers for Medicare & Medicaid Services (CMS). CMS’ data showed a monthly jump of 40 basis points in occupancy rates between […]
Occupancy for post-acute care was flat on a month-over-month basis as of April 9, 2023, according to a data analysis from BMO Capital Markets. The news is dimmer for the real estate investment trusts (REITs) covered by the firm, most of which saw sequential declines, according to a note issued Friday. The analysts mapped REIT […]
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 […]
Nursing care facilities added about 2,800 jobs in November 2022, as the health care sector overall saw payrolls increase by about 45,000 workers. Hiring in nursing care slowed down from October, when nursing homes added about 4,100 new workers. Job growth overall slowed in November, with nonfarm payrolls increasing by 263,000, compared with average growth […]
The skilled nursing bump in Medicare rates was a “positive surprise” for leadership at Invesque (TSE: IVQ.U), as most in the industry expected payment rates to decrease heading into next year. Bryan Hickman, senior vice president of investments at Invesque, said the change – in the form of a 2.7% increase to Medicare payment rates, […]
With Covid-era federal financial support trailing off for skilled nursing operators, leaders in the space, including Sabra Health Care REIT (Nasdaq: SBRA) CEO Rick Matros, are increasingly turning a hopeful eye to Medicaid funding relief at the state level. Specifically, Matros believes more permanent relief is a function of how state budgets are shaping up […]
Proposed cuts to skilled nursing Medicare reimbursement add another layer of complexity for the skilled nursing industry as operators continue to face financial pressure. That holds true for one of the nation’s largest owners of skilled nursing facilities, LTC Properties (NYSE: LTC), as the company continues to deal with rent deferrals and abatements for its […]
Skilled nursing operators are presently eyeing a $320 million proposed decrease to Medicare funding at a time when a historic labor crisis and federal policies and rhetoric have a chance to make a mark on the industry for years to come. In just the last few months, the Biden administration unveiled its nursing home reform […]
The skilled nursing industry faces an uncertain future with slow occupancy recovery, a historic labor shortage and “worse than expected” cuts to Medicare funding. According to an analysis from Seniorly, 25% of facilities in the US report staff shortages in 2022, up from 16% in 2021. In Minnesota alone in 2022, 41% of SNF operators […]
President Joe Biden pledged in his first State of the Union address Tuesday night that his administration would do its part to boost nursing home quality, specifically calling out private equity-owned facilities. “As Wall Street firms take over more nursing homes, quality in those homes has gone down and costs have gone up. That ends […]
After skilled nursing occupancy recovery declined in September for the first time in seven months, some analysts are concerned that consistent staffing shortages will impact the real estate investment trusts who are landlords to operators nationwide, at least in the near-term, according to a Dec. 8 note from BMO Capital Markets. National data collected from […]
National Health Investors’ (NYSE: NHI) skilled nursing assets are outperforming assisted and independent living properties at this stage of the pandemic. Memory care is also on the company’s list of underperforming assets. These three types of properties experienced more significant occupancy and margin pressure, driven by staffing shortages and in turn increased hourly rates and […]
Leaders with LTC Properties (NYSE: LTC) are encouraged by skilled nursing occupancy trends, but the real estate investment trust (REIT) is still awaiting resolution on the bankruptcy of SNF operator Abri Health Care, formerly Senior Care Centers, and its Q2 2021 earnings took a hit from rent deferrals and abatements. Portfolio properties are no longer […]
The nursing home industry has been through the wringer over the past 24 months, first with the implementation of a new Medicare payment model, the Patient-Driven Payment Model (PDPM), and then the COVID-19 pandemic. Coming out of the pandemic, operators across the country need to start thinking about their future in the post-acute care continuum. […]
Though skilled nursing occupancy continues to tick upwards, the growth decelerated recently, which could have significant implications for the real estate investment trusts who are landlords to operators across the U.S., according to a June 6 note from BMO Capital Markets. The national data collected from nursing homes by the Centers for Medicare & Medicaid […]
An advisory and brokerage firm for senior housing and care operators expects transactions in the space to gather steam in the second half of 2021, with “greater near-term activity in skilled nursing,” according to a virtual investor meeting hosted by BMO Capital Markets that the bank recapped in a March 21 note. But Blueprint Healthcare […]
LTC Properties (NYSE: LTC) late Thursday announced that it will transition 11 skilled nursing facilities currently controlled by Abri Health Services/Senior Care Centers to a new operator after sending a notice of default over non-payment of March rent. The Texas-based HMG Healthcare will assume operation of the 1,400-bed portfolio sometime in the second quarter of […]
The COVID-19 vaccines being distributed in skilled nursing and long-term care facilities constitute a light at the end of the tunnel, at least in terms of the clinical ravages inflicted in SNFs and other institutional settings. But it’s far from clear what effect that will have on the number of patients and residents in those […]
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