REIT Resurgence Could Boost Skilled Nursing M&A Despite Near-Term Stress

The recent bullish performance of publicly traded real estate investment trusts (REITs) could have a virtuous cycle effect in the space, potentially boosting mergers-and-acquisitions activity in the skilled nursing and broader health care industries. That’s the thesis of Alex Pettee and Hoya Capital Real Estate, a Connecticut-based investment advisory firm that on Monday published a […]

PDPM 101: What Skilled Nursing Providers Need to Know Now

With a new Medicare payment model for skilled nursing facilities just months away, operators who haven’t started planning for the changes are already months behind. Skilled Nursing News has been reporting on the new Patient-Driven Payment Model (PDPM) since the day it was announced last July 31, and we’ve spent those eight months speaking to […]

Provider in $1.5M Skilled Nursing Settlement Responds to ‘Inaccurate’ Government Claims

Management at Conway Lakes Health & Rehabilitation in Orlando this week struck back at the federal government’s claims of malfeasance, days after regulators announced a $1.5 million settlement deal to resolve allegations of illegal kickbacks. The Department of Justice accused Clear Choice Health Care, the operator of Conway Lakes, and its employees of giving improper […]

Skilled Nursing Rents 10% Too High, Analysts Say

Skilled nursing rents must decline by about 10% across the board in order to ensure the facilities’ long-term stability, a Wednesday report from Green Street Advisors has concluded. Real estate investment trusts (REITs) must achieve rent coverage of around 1.9 times to achieve stability for their tenants, the real estate research firm’s analysts Lukas Hartwich […]

Omega CEO: Skilled Nursing Headwinds Will Die Down in Three Years

Fresh off a major restructuring effort with key tenant Signature HealthCARE, the CEO of Omega Healthcare Investors (NYSE: OHI) had a decidedly sunny outlook for the skilled nursing industry’s short-term future — as well as Signature’s. “We’ll look three years out,” Taylor Pickett said of his company’s restructuring strategy during a panel discussion at the […]

Sharing Success Stories Can Bolster Skilled Nursing in Meetings With Hospitals

Most post-acute providers are aware that they need to be able to demonstrate their outcomes with data in meetings with hospitals and other referral partners. But another crucial component is showing how those outcomes are contributing to a skilled nursing facility’s success. “I always say share what your outcomes are doing for you,” said Shonia […]

Signature CEO Steier on the Skilled Nursing Chain’s Rebuild, PDPM, and Industry’s Integrated Future

Skilled nursing provider Signature HealthCARE faced a a series of financial headwinds over the past two years. The provider’s problems ranged from issues paying the rent to major landlords Sabra Health Care REIT (Nasdaq: SBRA) and Omega Healthcare Investors, Inc. (NYSE: OHI) to a government investigation related to the False Claims Act (FCA). The Louisville, Ky.-based operator, […]

Omega Joins CareTrust in Predicting Post-PDPM Wave of Skilled Nursing Sales

Leaders at two major real estate investment trusts (REITs) focused on health care assets have predicted a coming wave of mergers-and-acquisitions volume as smaller providers refuse to adapt to new skilled nursing payment rules. As mom-and-pop operators begin to unpack the changes associated with the Patient-Driven Payment Model (PDPM) — the new set of therapy […]

Omega Pulls Plug on Restructuring Agreement with Struggling Orianna Skilled Nursing Chain

Omega Healthcare Investors, Inc. (NYSE: OHI) has pulled out of a proposed restructuring agreement with troubled tenant Orianna Health Systems, citing frustration with the process and a desire to protect its shareholders. The Hunt Valley, Md.-based real estate investment trust (REIT) said Monday that Omega will terminate its participation in the deal effective July 25. […]

Sabra Sells Nine Genesis Facilities For $81.4M

Sabra Health Care REIT (Nasdaq: SBRA) completed the sale of nine facilities leased to Genesis Healthcare (NYSE: GEN) for $81.4 million and one facility leased to Signature HealthCARE for $7 million. The Genesis facilities included seven skilled nursing facilities, one senior housing community and one continuing care retirement community (CCRC). As a result of the sale, […]

Signature HealthCARE to Pay $30M to Resolve FCA Claims Related to Rehab

Signature HealthCARE will pay more than $30 million to resolve allegations that it violated the False Claims Act (FCA) by knowingly submitting false claims to Medicare for rehabilitation therapy services. The settlement resolves allegations leveled in a lawsuit by Kristi Emerson and LeeAnn Tuesca, former Signature therapy employees, filed in federal court in Nashville, Tenn., and […]

14-SNF Portfolio Sells for $60M; JV Buys County Nursing Home for $11M

County Nursing Home Sells for $11M Local lawmakers last week approved the sale of the Champaign County Nursing Home in Urbana, Ill. to a joint venture between Extended Care Clinical and Altitude Health Services. The sale price was $11 million, according to local news station WCIA, and the transaction is scheduled for completion by the […]

Omega Inks New Deal with Signature, Sees Hot Local M&A Market

One day after Sabra Health Care REIT (Nasdaq: SBRA) announced a major restructuring deal with skilled nursing provider Signature HealthCARE, fellow real estate investment trust (REIT) Omega Healthcare Investors (NYSE: OHI) followed with an agreement of its own. The Louisville, Ky.-based Signature had fallen about $25 million behind on its rent payments to Omega by […]

Sabra Restructures Leases with Signature, Extends $12M Loan

After hinting at a possible solution earlier this year, Sabra Health Care REIT (Nasdaq: SBRA) has reached a deal to restructure its lease agreements with troubled tenant Signature HealthCARE. Signature on Monday entered into an 11-year lease with the Irvine, Calif.-based real estate investment trust (REIT), with options for three five-year extensions. Sabra will collect […]

Signature Explores Home Health Expansion Amid Skilled Nursing Troubles

After a pointed entrance into the home health care market in 2014, Signature HealthCARE has largely shied away from expansion in favor of focusing on its core skilled nursing business. But while its home health footprint has not yet grown, the Louisville, Ky.-based company still has an eye toward expansion in the space — once it works […]

Bank of America Upgrades Sabra Outlook Amid Senior Housing Push

By at least one analyst’s assessment, Sabra Health Care REIT’s (Nasdaq: SBRA) decision to diversify away from skilled nursing facilities has boosted its fortunes. Bank of America Merrill Lynch upgraded the real estate investment trust’s (REIT) stock from “underperform” to “neutral,” with research analyst Juan C. Sanabria pointing to Sabra’s ongoing divestment from properties operated […]

Lawsuits Force Signature to Give Up Highly Rated Nursing Home

Amid a period of financial difficulty, a number of lawsuits forced Signature HealthCARE to give up management of a well-rated nursing home. The management of the facility, which was rated four out of five stars by the Centers for Medicare & Medicaid Services (CMS), was transferred to  Englewood Cliffs, N.J.-based Accordius Health on Feb. 1, Louisville […]

Sabra CEO: Signature Deal Likely, Genesis Model ‘Does Not Work’

The CEO of Sabra Health Care REIT (Nasdaq: SBRA) on Thursday indicated that a deal to restructure Signature HealthCARE could soon be in the cards. “We have an agreement with the other primary landlords on Signature,” Sabra CEO Rick Matros said on his company’s fourth-quarter earnings call with shareholders and analysts — though he added […]