‘Fast-Tracked’: AHCA Lawsuit Opposing Nursing Home Staffing Mandate Has Strong Legs, With Injunction Expected Soon

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 […]

‘It’s Not Reality’: Health Dimensions’ CEO on the Ripple Effects of the Nursing Home Staffing Rule

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 […]

‘Gobbled Up’: CMS Medicare Increase for Nursing Homes Fails to Price in Dire Economic Environment, Costly Regulation

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 […]

Executive Outlook 2024: Inside the Headwinds and Opportunities That Await Nursing Homes

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 […]

CMS’ New Transparency Rule Can Help ‘Weed Out a Few Bad Actors’ but Won’t Impact Deals Much, Other Factors at Play

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 […]

M&A Spending Hits 10-Year Low for Skilled Nursing, Senior Housing Sector

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 […]

Regency Rebrands to Wellsential Health, Touts New Nonprofit Model; PruittHealth Acquires 3 SNFs

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, Merchants Bank Complete Securitization of $1.1B in SNF, Senior Living Loans, in First for Industry

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 […]

Inside the Factors Driving High SNF Deal Prices — And Why Market Adjustment May Be Coming

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 […]

Skilled Nursing in Financial Squeeze, But Bullishness Builds for Sector’s Next Phase

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 […]

2023 Outlook for Skilled Nursing Shaped by Unfriendly Federal Policies, Confounding Deals, Labor Crisis

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 […]

Skilled Nursing Game Changer: Calls for Innovation in HUD Financing Gain Momentum

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 […]

2023 Skilled Nursing Investment Outlook Hinges on Interest Rates, Medicaid Rebasing 

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 Lands $136M For 17 SNF Portfolio; Blueprint Inks 5 Deals in 5 States 

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 […]

Ensign Closes SNF Deals in 3 States; White Oak Executes $275M in Financings For 6 Transactions

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 […]

REITs Gain Dealmaking Edge, Will Pursue Prized Skilled Nursing Operator Relationships

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 Funds $24.9M SNF Portfolio; ESI Arranges Nursing Home Sale in Indiana

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 […]

Why HUD Financing May Be the Vehicle to Drive Skilled Nursing Innovation

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 […]

CareConnectMD Wraps $25M Funding Round; VIUM Capital Closes $1.1B in Deals in Q2

The investment will be used to deepen the company’s presence in California, Ohio and Texas, in addition to expanding into other markets, according to a news release. CareConnectMD provides primary and palliative care to high-risk populations in care environments such as the home and skilled nursing facilities. CareConnectMD is currently one of only eight high-needs […]