Welltower’s Acquisition Pace Adds $2B to the Pot, With $600M Earmarked for Nursing Homes

Welltower Inc. (NYSE: WELL) continues to ramp up acquisitions to increase bottom line growth, including investment in skilled nursing facilities, with about $600 million earmarked for SNF deals in the upcoming financial quarters. The Ohio-based real estate investment trust (REIT) recently announced $2 billion in potential deals tied to the launch of an equity offering, […]

Timeline a Win, But RN Provision Draws Ire as Nursing Home Industry Reacts to CMS’ Staffing Proposal

Mixed reactions to the nursing home minimum staffing mandate continued to roll in over the weekend – along with an editorial from President Joe Biden – following a first glimpse of the proposal on Friday. As the president underlined the need for more staff to improve quality, the 24/7 provision for registered nurses (RNs) continued […]

SNF Outlook: REITs to Play Offense as Private Buyers ‘Partially Sidelined,’ Operating Trends Improve

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) […]

‘Rapid Turnaround’: After Strong Q2 Results Welltower CEO Sees Opportunities in Skilled Nursing

Welltower (NYSE: WELL) executives said Tuesday that its skilled nursing facilities undergoing a change of hands to new operators have gone from losing money to making profits during the course of the second quarter. CIO Nikhil Chaudhri said during Welltower’s conference call that out of 147 skilled nursing buildings that were being transitioned over to […]

Ensign Going ‘Up the Acuity Chain,’ Expects Medicaid Support for Soft Landing as PHE Ends 

Following the Biden administration’s plans to end the public health emergency (PHE) on May 11, leaders at Ensign Group (Nasdaq: ENSG) are bullish that state assistance will create a soft landing. Ensign CEO Barry Port has seen operators in the sector bolstered by enhanced Federal Medical Assistance Percentage (FMAP) funding during the pandemic; this federally […]

CareTrust CIO: ‘End of Line’ Nears for Some Operators Across Skilled Nursing Sector, Creates Investment Opportunities

Economic conditions such as tight debt markets have slowed the portfolio restructuring efforts that CareTrust REIT (NYSE: CTRE) embarked on earlier this year. However, company leadership see the scales tipping in favor of acquisitions. Currently, acquisition pricing remains tricky, as sellers are still trying to achieve “peak pricing,” CareTrust Chief Investment Officer Mark Lamb said […]

Ensign On Track to Overtake Genesis As Largest Nursing Home Operator

The Ensign Group (Nasdaq: ENSG) is poised to overtake Genesis HealthCare as the largest nursing home operator in the country as it continues to build upon its rapidly growing portfolio, according to ownership data released last week by the Centers for Medicare & Medicaid Services (CMS). Ensign could be the largest skilled nursing provider in […]

REITs, Other ‘Well Funded’ Skilled Nursing Investors Rejoice Buyers’ Market Return

Lenders in the skilled nursing space are increasingly more selective with their financing, adopting stricter underwriting standards while regulatory uncertainties and reimbursement changes leave investors more reserved. There is also a more defined shift toward a buyers’ market as well, as more transactions come back across the sector, according to analysts in the space. A […]

Economic, Staffing Headwinds Continue to Trouble Nursing Homes, But Operators Like Ensign Remain ‘Steady’

As the year so far has brought rising inflation, the looming possibility of a recession and uncertainties around staffing stability and post-Covid demand, there are still operators — like Ensign Group (Nasdaq: ENSG) — that have continued on a path toward growth. In a note previewing 2Q earnings for the health care services industry, Stifel […]

HHS Extends Public Health Emergency Another 90 Days

The federal government late last week officially renewed the COVID-19 public health emergency (PHE) for an additional 90 days. The extension was to be expected for leaders in the nursing home industry as the Department of Health and Human Services (HHS) has said it would give stakeholders 60 days notice if the PHE is not […]

Ensign Has ‘Plenty of Space to Grow’ in Select Skilled Nursing Markets

The Ensign Group (Nasdaq: ENSG) is in a position to grow in select markets, while its newly-formed real estate investment trust (REIT) Standard Bearer allows the skilled nursing giant to finance other promising operators in the sector. Ensign executives discussed future M&A plans and what it looks to accomplish through its REIT during a virtual […]

REITs Owned 12% of US Skilled Nursing Assets in 2021, Ownership Trends Changing

Real estate investment trusts (REITs) owned about 12% of all skilled nursing assets as of 2021, equating to about 1,870 facilities. That’s according to a research letter published in JAMA Health. Researchers also examined REIT ownership trends of hospitals and other health care properties. The data comes at a time when the Biden administration and […]

Ensign CEO: Federal Staffing Minimums Are ‘Not the Way to Drive Quality’

While the skilled nursing industry faces unprecedented staffing challenges, The Ensign Group (Nasdaq: ENSG) has been able to increase its frontline workforce by 3% – a feat achieved thanks to local recruiting and retention efforts supported by the company’s regional market strategy. Ensign’s reliance on agency has also decreased — a trend CEO Barry Port […]

LTC CEO: Skilled Nursing Providers Not Panicking in Face of Operational Challenges, Uncertainty

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 […]