PDPM Adjustments Loom Over Skilled Nursing Investors, But Impact Could Be Softer Than Previous Cuts

The federal government sent a shockwave through the post-acute and long-term care landscape earlier this month when it disclosed that the new Medicare payment model for nursing homes had increased total spending by 5% — counter to its goal of budget neutrality. But while officials mull the ways that the Patient-Driven Payment Model (PDPM) could […]

PDPM Adjustments, Smaller Medicare Raise Show CMS ‘Ready to Pull Back’ on COVID Aid to Nursing Homes

As the federal government’s approach toward nursing homes and COVID-19 continues to shift from emergency support to reflection and reform, analysts are increasingly warning that the coronavirus-era gravy train could soon come to an abrupt stop. In particular, the past week has brought three pieces of news that may signal trouble ahead for operators and […]

Home Health Giants Find Partners in Speeding Skilled Nursing Diversions Amid COVID ‘Fear Factor’

Home health operators aren’t the only players in post-acute and long-term care looking to capitalize on a weakened skilled nursing sector: As health systems and managed care insurers look to adapt their offerings to the post-COVID tastes of their patients, home health providers may find themselves with significant regulatory and payment tailwinds as they work […]

Fitch Upgrades Sabra Outlook Despite Specter of Permanent 30% Rent Cuts

Senior housing and care operators that had been struggling prior to the COVID-19 pandemic may need permanent rent cuts of 30% to survive in the long term, a top financial ratings agency noted — but even that hit is unlikely to hurt one of the top landlords in the sector. Fitch Ratings on Monday upgraded its […]

Slow Vaccine Rollout Prompts Skilled Nursing REIT Downgrades, But Stimulus Optimism Remains

Two investment firms provided opposite takes on the stocks of publicly traded real estate investment trusts (REITs) with skilled nursing portfolios, with Mizuho Securities USA downgrading two of the REITs and Jefferies upgrading the same two firms. The two REITs involved were Omega Healthcare Investors (NYSE: OHI) and Sabra Health Care REIT (Nasdaq: SBRA). “We […]

Sabra: Genesis, Signature Not Alone in COVID-19 Troubles, But Wider Write-Down Trend Unlikely

General improvements in access to testing and vital protective gear have put skilled nursing facilities in a better spot than the springtime, a top landlord in the space asserted Tuesday, but operators and investors shouldn’t necessarily expect complete adoption of a long-awaited vaccine when it hits the market. And although Sabra Health Care REIT (Nasdaq: […]

Sabra Joins Fellow REITs, Takes $14.3M Write-Off on Genesis and Signature Rent

Sabra Health Care REIT (Nasdaq: SBRA) this week became the latest landlord to change its accounting for nursing home tenants Genesis HealthCare (NYSE: GEN) and Signature HealthCARE, writing off $14.3 million of non-cash rent receivables associated with the operators. The real estate investment trust (REIT) cited concerns about Genesis and Signature’s operational futures in the […]

Matros: CNAs Living Below Poverty Line ‘Unacceptable,’ Calls for Higher Minimum Wage Standards for Nursing Homes

Staffing, a long-standing thorn in the side of skilled nursing operators even before the COVID-19 pandemic, has emerged as one of the most critical elements in how facilities manage an outbreak and navigate the current public health emergency. But it would be hard to tell that fact by the pay certified nursing assistants (CNAs), who […]

Congress Gives Nursing Homes Two-Year Extension on Advance Medicare Repayments

A bill to fund the federal government and avert another shutdown also gave nursing home operators and other health care providers a significant extension on repaying advance Medicare payments offered through a COVID-19 stimulus program. The Senate passed and President Trump last week signed a continuing resolution that included a provision to delay recoupments from […]

Fitch: 30% Rent Cuts for Skilled Nursing Facilities May Be Necessary, But Not for All Operators

Major skilled nursing landlords are likely to institute rent reductions over the course of 2021 in order to help keep them afloat, according to Fitch Ratings — but the effect won’t be equally felt across all operators. In affirming twin BBB- ratings for Omega Healthcare Investors (NYSE: OHI) and National Health Investors (NYSE: NHI), Fitch […]

Sabra Mulls $14M Write-Off for Signature, Genesis After ‘Going Concern’ Warnings

Concerns about the future of skilled nursing operators Genesis HealthCare (NYSE: GEN) and Signature HealthCARE have spread to a second public landlord, though in this case, Sabra Health Care REIT (Nasdaq: SBRA) stopped short of taking definitive action just yet. Sabra late last week disclosed that the real estate investment trust (REIT) and its auditors […]

Skilled Nursing M&A Remains Active: Investors Don’t ‘Have a Better Place to Put Their Money’

The ongoing pandemic has rightfully shifted attention away from dealmaking in the long-term and post-acute care space, but several leaders have expressed optimism that investors will support the sector moving forward — though the influx of federal cash keeping operators afloat could scramble valuation math for some time to come. With overall uncertainty in the […]

Matros: Federal Aid Keeps Nursing Homes Afloat for Now, but Industry Facing ‘One Long Wave’

As the major publicly traded players in post-acute and long-term care prepare to reveal another set of post-COVID results over the coming weeks, Sabra Health Care REIT (Nasdaq: SBRA) CEO Rick Matros remains confident that the government’s response to COVID-19 has averted severe financial strains for its tenants — at least for now. The Irvine, […]