The Federal Reserve cut interest rates by half a percentage point on Wednesday, marking the first reduction in four years and reflecting a shift aimed at supporting economic growth as inflation shows signs of moderation. Financial experts in the nursing home industry hailed the Fed’s action as “welcome relief.” “[This] is welcome relief for skilled […]
VIUM Capital
Lawyers and other leaders in the nursing home sector believe the American Health Care Association’s (AHCA) lawsuit is strong, framed well and likely to succeed, with a decision possible by early 2025. An injunction from the plaintiffs – all 5-Star facilities located in Texas along with AHCA – regarding staffing rule’s implementation should follow in […]
As staffing shortages continue to drive nursing home closures across the U.S, sector leaders such as Erin Hennessey, President and CEO of Health Dimensions Group, are expressing deep concerns about the minimum staffing rule that will only worsen the crisis of access, especially in rural counties where labor is in very short supply. “There’s no […]
The nursing home industry, along with other settings in long-term care, is expected to be a central campaign focus for presidential candidates in future elections. One reason is growth of the older population just as the Medicare trust fund is projected to show a deficit starting around 2026 when the oldest of baby boomers will […]
The federal government’s proposed Medicare payment increase for 2025 is not sitting well with the nursing home sector, with financial experts and operators raising concerns that the bump fails to compensate for inflation-induced operating costs – and a staffing proposal anticipated to cost in the billions each year. For some experts, the Centers for Medicare […]
Nursing home leaders from across the nation, including the largest advocacy groups for the sector, plan to oversee efforts in 2024 to increase funding – both from the federal government and through improved revenue streams as operating pressures ease slightly. At the center of these efforts is an attempt at influencing the political will and […]
Nursing home ownership changes have largely been embraced by the industry and will have little impact on deal activity, with the new transparency rule from the Centers for Medicare & Medicaid Services (CMS) having very little impact on the sector. Instead, the new rule will force nursing homes to report ownership details during critical junctures […]
The third quarter of 2023 marked the lowest quarterly spend on senior housing and care acquisitions in the last decade. That’s according to newly released data from LevinPro LTC, which showed 115 total deals for the quarter, of which 41% were skilled nursing transactions. SNF deals trailed only assisted living, which accounted for 49% of […]
About one year after being acquired by Dwyer Workforce Development (DWD) in a $590 million deal, Regency Integrated Health Services has rebranded as Wellsential Health and is moving forward under a “new nonprofit model,” the company announced Thursday. The 63 skilled nursing facilities under the Wellsential banner now represent the “largest family” of non-profit SNFs […]
VIUM Capital and its joint-venture partner Merchants Bancorp (Nasdaq: MBIN) have completed a securitization involving over $1.1 billion in skilled nursing and senior housing bridge loans, in a transaction that the firms tout as a first for the sector. “[This deal] will transfer the credit risk on the tranche of those loans to … outside […]
Bed pricing for nursing homes remains astronomically high, despite a spate of economic factors that have dampened dealmaking, leading operators surprised and confused about the trend. Unfavorable interest rates, higher costs of care and market inflation have caused M&A activity to normalize, and yet bed prices haven’t budged. Bed prices averaged $97,000 per bed in […]
Rising interest rates are inflicting pain on the skilled nursing sector, with tough discussions between capital providers and operators to come in 2023. But with more sophisticated operators serving higher-acuity residents than in the past, and Covid-19 changing perceptions of “stroke of the pen risk,” investors see an industry with attractive long-term prospects. “I’ve been […]
The gap between current skilled nursing occupancy and pre-pandemic occupancy is “99%” due to lack of staff, and addressing the sector’s workforce crisis is clearly the top priority for 2023. That’s according to Phil Fogg Jr., president and CEO of Marquis Companies and chairman of the American Health Care Association. Milwaukie, Oregon-based Marquis owns and […]
Lenders, operators, industry lobbying organizations and consumer advocates all agree that an expansion of skilled nursing financing programs through the Department of Housing and Urban Development (HUD) could be a game-changer in driving much-needed innovation. Building on suggestions from the National Academy of Sciences, Engineering, and Medicine (NASEM), the authors of a recent Health Affairs […]
On Friday, news broke that the Ohio House approved $615 million in funding for the state’s skilled nursing facilities. Also on Friday, stocks were roiled by a better-than-expected federal jobs report, which stoked expectations of further interest rate hikes from the Federal Reserve. These dynamics — funding measures at the state level and rising interest […]
VIUM Capital announced that it closed on a $136,784,000 bridge loan in October that will be used to acquire the real estate of 17 Indiana-based skilled nursing facilities. The deal marked one of VIUM’s largest single transactions to date under time pressure and without the need for syndication or partnership, according to Executive Managing Director […]
The Ensign Group announced a series of SNF acquisitions and long-term leases earlier this month, including one facility in Arizona, two in South Carolina and six in Texas. Ensign acquired the operations of Oak Harbor Healthcare, a 132-bed skilled nursing facility located in Mount Pleasant, S.C. and Oak View Health and Rehabilitation, a 190-bed SNF […]
Real estate investment trust (REIT) dealmaking for the rest of this year and into 2023 will largely be driven by the desire to deepen existing or secure new partnerships with skilled nursing operators that have “weathered the storm exceptionally well.” That’s according to Michael Segal, executive managing director and partner at Blueprint Healthcare Real Estate […]
CareTrust REIT Inc. (NYSE: CTRE) funded a $24.9 million B-piece secured financing on a four-facility portfolio in the Southeast. The portfolio includes about 700 skilled nursing beds, according to CareTrust. “This loan begins a new relationship with this new Southeast operator,” CEO Dave Sedgwick said in a statement. “The operator has done a tremendous job […]
If there’s one financial backing source that’s become a favorite among nursing home owners it’s U.S. Department of Housing and Urban Development (HUD) funding. Even still, it may come with some limitations. HUD loans can be used to purchase, build, refinance or remodel nursing homes, among other health care facilities, and their utilization in the […]
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