BusinessBriefs for December 2014

» Omega Healthcare Investors is poised to own nearly 875 skilled nursing properties across 41 states, following its merger with Aviv REIT in a $3 billion deal announced in November. The all-stock deal will create the nation's "premier publicly traded pure-play skilled nursing facility real estate investment trust," the companies stated in joint press releases. The combination of the powerhouse REITs is just the latest mega-deal in the long-term care sector.

Occupancy passes 90%

Seniors housing stock enjoyed occupancy rates above 90% in the third quarter, the National Investment Center for Seniors Housing & Care announced. Occupancy is up 3.4% since the cyclical low of 86.9% seen in the first quarter of 2010.

Nonprofits need to examine core services, says chairman

Nonprofits need to examine core services, says chairman

Nonprofit long-term care providers must work together to address alarming trends, or their market share could plummet, LeadingAge Chairman David Gehm told association members.

BusinessBriefs for November 2014

» Large nonprofit senior living groups continue to be largely the domain of faith-based operators, according to the latest LeadingAge Ziegler 100 report. Presbyterian-, Methodist- and Lutheran-run organizations were the most common, investigators found.

Prospects not well courted

Many senior living operators could do a better job of attracting potential customers, a study by students at George Mason University has found.

LTC-related deals took the lead in the second quarter

LTC-related deals took the lead in the second quarter

Long-term care bucked healthcare industry trends with strong merger and acquisition activity in the second quarter, according to newly released data from professional services firm PricewaterhouseCoopers.

BusinessBriefs for October 2014

» Brookdale Senior Living and real estate investment trust HCP have finalized a $1.2 billion joint venture, the firms announced. The new partnership will include 14 continuing care retirement communities in its portfolio. Under the deal, Brookdale and HCP have also amended leases on 202 HCP-owned senior housing communities previously owned by Emeritus Corporation.

SNFs limited in disasters

Skilled care facilities officially tabbed "alternate care sites" may not be able to take on hospital patient overflow during disasters, according to a report that examines hospital disaster planning.

Genesis, Skilled Healthcare deal forms mega-company

Genesis, Skilled Healthcare deal forms mega-company

Genesis HealthCare and Skilled Healthcare Group will merge to create a single company with more than 500 facilities nationwide, the providers announced in late August.

BusinessBriefs for September 2014

» CNL Healthcare Properties completed the acquisition of seven communities in Texas and one in Illinois for approximately $187.2 million, with potential adjustments related to property net operating income. The eight properties collectively have 798 units and 72 skilled nursing beds. They were acquired from Dallas-based South Bay Partners Ltd.

AdCare shifts business plan

AdCare Health Systems plans to divest its senior living properties and become a holding company, the firm announced.

Sector's housing stock grows at uneven pace, NIC reports

Sector's housing stock grows at uneven pace, NIC reports

Seniors housing stock collectively rose by 0.1% in the second quarter, putting the sector on pace for a 1.5% annual increase, according to new data from the National Investment Center for the Seniors Housing & Care Industry.

BusinessBriefs for August 2014

» Center Management Group of Flushing, NY, will pay $145 million to purchase five nursing facilities and two senior living communities from the Archdiocese of Philadelphia. The company currently operates 15 nursing facilities across New York and New Jersey. As part of the deal, the buyer has pledged to maintain the Catholic character of the nursing homes.

Hospitalist firm charged

A hospitalist company that works with thousands of facilities is facing federal charges that its clinicians routinely overbilled Medicare and Medicaid, authorities recently announced.

Skilled care companies seek site-neutral Medicare rates

Skilled care companies seek site-neutral Medicare rates

Proposed Medicare payment changes have put the nation's skilled care companies at odds with inpatient rehabilitation providers, and the two sides were making strident arguments in front of lawmakers at press time.

BusinessBriefs for July 2014

» Berkadia Commercial Mortgage LLC acquired Keystone Commercial Capital, a commercial mortgage banking company based in Scottsdale, AZ. Keystone services more than $2 billion in commercial real estate loans. Berkadia plans to add 16 employees to its offices.

Kindred bid more hostile?

Kindred Healthcare increased its bid for Gentiva Health Services to about $534 million, and plans to take the offer directly to shareholders.

Ventas' $2.6 billion bid will create healthcare REIT titan

Ventas' $2.6 billion bid will create healthcare REIT titan

Real estate investment trust giant Ventas took a huge step in bolstering its private-pay assets when it announced it would acquire American Realty Capital Healthcare Trust for $2.6 billion in cash and stock. The transaction is expected to close later this year.

BusinessBriefs June 2014

» Four bidders have emerged as finalists to buy Griffin-American Healthcare REIT II Inc., in a transaction that could value the company at more than $3.6 billion.

A new day for Sunrise

Sunrise Senior Living has promoted Chris Winkle to its top executive post. The firm's former COO replaces Penny McIntyre, who had been on the job for less than six months.

Occupancy, absorption both climb in first quarter: NIC

Skilled nursing facilities' average occupancy rate continued to rise in the first three months of 2014, while absorption flipped into positive territory for the first time in almost a decade, according to the latest quarterly figures from the National Investment Center for the Seniors Housing & Care Industry.

BusinessBriefs May 2014

» Compass Health has agreed to a $1.1 million settlement in a class action lawsuit alleging that the skilled nursing provider did not pay overtime or allow workers to take needed breaks. The firm operates seven skilled nursing facilities and two assisted living communities in the coastal area between Los Angeles and San Francisco.

Value is new SNF mandate

Long-term care operators will face additional pressure to improve, said William Shrank, Ph.D., chief scientific officer for CVS/Caremark.

Nursing rates and prices hit historic highs, reports show

Nursing rates and prices hit historic highs, reports show

The rates nursing home charge and the prices they fetch on the market have hit new highs, reports reveal.

BusinessBriefs

» Country Villa Health Services, which operates 19 skilled nursing and assisted living facilities in California, has filed for Chapter 11 bankruptcy. Pending class-action lawsuits and cash flow problems led to the filing, chief executive Stephen Reissman told The Wall Street Journal. The company faces seven class action suits, some labor related and some alleging improper care. The company intends to keep its facilities open while it reorganizes.

Ensign split hurts earnings

The Ensign Group's annual results for 2013 came in just under management's guidance for the first time in the company's history, the provider announced.

Brookdale, Emeritus merger upends status quo, CEO says

Brookdale, Emeritus merger upends status quo, CEO says

Brookdale Senior Living is poised to become the largest senior living provider in the country, through a $2.8 billion acquisition of Seattle-based Emeritus Corp.

BusinessBriefs

» Catholic Health will sell three of its seven long-term care facilities to Comprehensive Healthcare Management, according to local reports. A price has not been finalized for the three facilities in the area around Buffalo, NY. Catholic Health's remaining LTC facilities will be aligned more closely with the company's hospitals, reports stated. CHM is based on Long Island, NY.

Gay couple turns to EEOC

Brookdale Senior Living is revisiting its benefits policies for same-sex couples after an employee filed a complaint with the Equal Employment Opportunity Commission in January. The worker alleged that Brookdale denied health benefits to her wife after the couple got married in Connecticut.

Providers strive to diversify services, payment streams

Providers strive to diversify services, payment streams

Companies in the post-acute sector have been seeking deals to diversify their services and limit their reliance on Medicare, according to a recent analysis from investment banking firm TripleTree.

BusinessBriefs

» The Cahill Group, based in Chicago, has acquired a portfolio of Rosewood Care Centers skilled nursing facilities for $250 million. The SNFs are in Illinois and Missouri. The new company overseeing operations will be called Cahill Rosewood.

Freddie Mac option debuts

A California long-term care provider has become the first to obtain financing through a new revolving credit facility offered by Freddie Mac.

Local 'religiosity' often tied to fairer business practices

Local 'religiosity' often tied to fairer business practices

A number of the nation's largest nursing facility corporations might have better business practices because their headquarters are in communities where religion is important to many people, new study results suggest.

CompanyBriefs

» IPC The Hospitalist Company has acquired four affiliated post-acute practices in White Plains, NY. Known collectively as Park Avenue, the affiliated practices serve more than 120 skilled nursing and other post-acute facilities, according to co-owner Brad Markowitz. IPC is a physician group offering services in more than 800 post-acute facilities.

Omega closes $525M deal

Omega Healthcare Investors closed a $525 million deal to acquire 55 skilled nursing facilities.

Brookdale targets new goal: national brand recognition

Brookdale targets new goal: national brand recognition

Brookdale Senior Living is known as one of the largest U.S. assisted living operators, but the Tennessee-based company has ambitious plans to establish itself as the national leader across the whole continuum of care.

BusinessBriefs

» Brookdale Senior Living workers in the Senior Care division will not receive merit increases due to Medicare reimbursement cuts and therapy caps, the Nashville-based company stated in an email to local reporters.

HUD tries to ease backlog

Senior living companies pursuing Department of Housing and Urban Development financing should expect delays, one expert said.

Kindred repositions services to guarantee future growth

Kindred repositions services to guarantee future growth

Kindred Healthcare, one of the nation's largest long-term care operators, has completed the first phase of a repositioning plan and is entering a period of growth, company leaders recently announced.

CompanyBriefs

» The Evangelical Lutheran Good Samaritan Society partnered with AARP to pilot the "Connecting to Community" program to reduce social isolation. Residents at four Good Samaritan locations received iPads and six months of training.

Advisors draft new Blueprint

High-profile long-term care veterans have teamed up to create a new senior housing investment advisory group based in Chicago.

Five Star makes changes to rely less on public funding

Five Star makes changes to rely less on public funding

Five Star Quality Care recently transferred operations of two rehabilitation hospitals in Massachusetts to Reliant Hospital Partners, marking the latest move in the company's dramatic shift toward private pay operations.

CompanyBriefs

» Alana Healthcare has continued to partner with skilled nursing facilities in the Southeast as it transitions from a durable medical equipment supplier to a healthcare management company. Its chronic obstructive pulmonary disease program has helped SNFs reduce hospital readmissions 73%, according to the company.

KY helping Trilogy grow

Trilogy Health Services, which operates 76 senior living communities in the Midwest, is looking to expand its headquarters to support significant growth.

Faith-based provider forced to sell off 6 nursing homes

Faith-based provider forced to sell off 6 nursing homes

Catholic Health Care Services of the Archdiocese of Philadelphia, one of the nation's largest faith-based long-term care providers, has announced it will sell its six nursing homes and one assisted living facility to help close a huge budget deficit.

Diversicare exits Arkansas

Diversicare is terminating its lease on 11 Arkansas nursing facilities, exiting that market after more than 20 years.

Skilled Healthcare Group CEO to retire as company rebuilds

Skilled Healthcare Group CEO to retire as company rebuilds

Boyd Hendrickson, a transformative figure in long-term care while at the helm of Skilled Healthcare Group, will be retiring as the company restructures its balance sheet and administrative services.

BusinessBriefs

» Cambridge Realty Capital Companies recently arranged $24 million in Housing and Urban Development loans to refinance skilled nursing facilities with a total of 549 beds in three states. The loans will go to Alden Northmoor Rehabilitation and Health Care Center in Illinois and four North American Health Care Inc. properties in California and Utah.

REIT in $173M Merrill buyout

Health Care REIT is buying the remaining 20% equity interest in a Merrill Gardens 38-property portfolio, the two companies announced the final week of June. The additional $173 million investment will give full ownership to the REIT, which has agreed to a triple-net lease with Emeritus Senior Living to manage the properties. A third-quarter closing is anticipated.

Kindred shifts allegiance to Omnicare from PharMerica

Kindred shifts allegiance to Omnicare from PharMerica

Kindred Healthcare will split with PharMerica and instead partner with Omnicare in 2014, marking a significant change in the landscape of long-term care pharmacy services providers.

BusinessBriefs

» Atria Senior Living announced tennis legend Billie Jean King will help develop and promote an active aging program for residents, to decrease the risk of falls and extend active lifestyles.

Saber expands its footprint

Saber Healthcare Group has made its first appearance on the American Health Care Association's annual list of the 50 largest U.S. nursing facility companies.

Extendicare mulls sell-off of U.S. operations amid decline

Extendicare mulls sell-off of U.S. operations amid decline

Extendicare, a major North American long-term care operator, may sell off its 158 U.S. facilities before the end of the year. The company's move to separate its Canadian and U.S. businesses could strike an ominous note to other providers as the Affordable Care Act speeds toward full implementation.

BusinessBriefs

Extendicare Health Services recently completed a $37.7 million portfolio refinancing of six SNFs in the Midwest. Ziegler Financing Corporation closed the transaction.

REITs to shed skilled sites

Large real estate investment trusts are looking to get out of the skilled nursing sector, according to the Wall Street Journal.

AdCare hires new CFO, mulls moves after financial errors

AdCare hires new CFO, mulls moves after financial errors

A turbulent spring at AdCare Health Systems Inc. included ongoing fallout from accounting errors that led to the appointment of a new chief financial officer, as well as a potential change in majority control of the company.

BusinessBriefs

Benedictine Health System President and CEO Dale M. Thompson will retire in December. Thompson is a former president of the American Health Care Association.

New name for Advocat Inc.

Advocat Inc., which operates 48 skilled nursing centers, changed its name to Diversicare Healthcare Services as of March 15. Its facilities already operated under the Diversicare name, and President and CEO Kelly J. Gill said the name change is to unify branding.

Aviv finally finds success with $279M initial public offering

Aviv finally finds success with $279M initial public offering

Aviv REIT Inc. netted nearly $279 million in an initial public offering of common stock. The Chicago-based company first tried to go public in 2008 but was stopped by the economic crisis, and a 2009 attempt was met with investor resistance.

Business briefs

» Emeritus Senior Living recently said it wants to hire 1,000 veterans by 2018. The assisted living and skilled nursing provider says this is the first such veteran recruiting program in senior care. Emeritus has identified a wide range of positions veterans may be qualified for, including resident care director and driver.

Brookdale has new CEO, look

Brookdale Senior Living is launching a rebranding initiative under new CEO Andy Smith. The company serves about 66,700 residents in skilled nursing centers and senior living communities.

Kindred will trim more SNFs from its portfolio, Diaz says

Kindred will trim more SNFs from its portfolio, Diaz says

Kindred Healthcare will continue to offload its nursing facility operations leased from Ventas, according to President and CEO Paul J. Diaz.

Business briefs

Gulf Coast Healthcare, LLC will acquire 25 skilled nursing facilities in Alabama, Mississippi and Florida, using a $168.8 million five-year term loan. After this acquisition, Gulf Coast will operate a total of 69 SNFs, all in those three states. Capital One Bank led the financing by providing a $63.8 million secured loan.

Ventas hikes NOI estimate

Ventas Inc. anticipates $386 million in 2012 net operating income after management fees from its private-pay senior housing communities managed by Atria Senior Living Inc. and Sunrise Senior Living Inc.

Native American nursing care group self-finances expansion

Native American nursing care group self-finances expansion

In a first for Native Nations in Arizona, the Tohono O'odham Nursing Care Authority (TONCA) has expanded the campus of an existing eldercare facility by opening a $1.2 million assisted living facility on the grounds.

NHC acquires 6 more SNFs

National HealthCare Corp is buying six nursing homes from landlord National Health Investors for $21 million, the company announced.

Golden Living to pay $600k but derides wound care charge

Golden Living to pay $600k but derides wound care charge

Golden Living announced in January it reached a settlement totaling more than $613,000 with the Office of the Inspector General of the Department of Health and Human Services, the Department of Justice and the state of Georgia.

Despite payment challenges, companies charging ahead

Despite payment challenges, companies charging ahead

Even with Medicare and Medicaid payment pressures, Kindred Healthcare's RehabCare contract therapy division is holding steady, the company announced at the end of October.

Deal is a true groundbreaker

Genesis HealthCare is partnering with Johns Hopkins Hospital's Bayview campus in a $20 million project that may force many analysts to revamp skilled care bed valuations — and the nature of hospital-SNF alliances.

Experts: Sector on rebound, managed care growth likely

Experts: Sector on rebound, managed care growth likely

Seniors housing continues a comeback, but operators need to be prepared for the expanding role of managed care, experts said during the National Investment Center for the Seniors Housing & Care Industry annual conference in Chicago in mid-September.

Healthcare REIT buying spree grabs Sunrise Senior Living

Healthcare REIT buying spree grabs Sunrise Senior Living

Health Care REIT Inc. will acquire Sunrise Senior Living for $844.6 million in cash, creating a mammoth senior living company that will send ripples through the sector.

Top not-for-profits listed

The Evangelical Lutheran Good Samaritan Society led the list of largest non-for-profit senior living operators in 2011, according to the annual Leading Age/Ziegler 100 report.

Senior living sector enjoying better credit ratings, access

Senior living sector enjoying better credit ratings, access

Halfway through 2012, senior living providers are having a better time securing credit in order to expand and are seeing better credit rankings.

Ventas gets big gain in Q2

Ventas Inc. posted a huge gain in the second quarter, with revenues up by almost 70% compared to a year go. The total revenue in the quarter was $616.4 million. A year ago, the revenue was $359.5 million.

Genesis facilitates Sun set with multimillion dollar deal

Genesis facilitates Sun set with multimillion dollar deal

Genesis HealthCare agreed in June to purchase rival Sun Healthcare Group in a transaction that should close the second half of 2012.

Ciena SNFs are refinanced

Capital One Bank closed a five-year $29 million loan for Ciena Healthcare in July.

Roadman new ALC president

The former head of the American Health Care Association, Charles "Chip" Roadman II, M.D., will serve as interim president and CEO of Assisted Living Concepts.

Extendicare leaves Kentucky, blames need for tort reform

Extendicare leaves Kentucky, blames need for tort reform

Citing the state's lack of tort reform, a major nursing home chain has announced that it is leaving Kentucky.

Company Briefs, June 2012

Company Briefs for June 2012

Sabra on an upswing

Moody's Investors Service upgraded Sabra Health Care REIT in mid-April after the long-term care landlord posting its second-best performance in the first quarter, with a total return of 38.8%.

Kindred sheds more facilities

Kindred Healthcare announced it will not be renewing another lease agreement with Ventas for six nursing and rehabilitation centers and two long-term care facilities.

Improving economy will help senior living field, expert says

Improving economy will help senior living field, expert says

Senior living operators should be cautiously optimistic due to the rebounding economy and increased consumer confidence, a lead economist said in March.

G & E files for bankruptcy

BGC Partners will buy the assets of Grubb & Ellis Co., which filed for bankruptcy in February.

Kindred cuts its losses and focuses on 'cluster' strategy

Kindred cuts its losses and focuses on 'cluster' strategy

As it recovers from a tough fourth quarter, Kindred Healthcare said it would not renew seven lease bundles containing 64 facilities in 2013.

REIT snaps up 10 facilities

Griffin-American Health Care REIT II has acquired 10 skilled nursing facilities and a medical office building for $174.3 million.

Kindred may save the day for well-known LA nursing home

Kindred may save the day for well-known LA nursing home

One of Hollywood's most famous nursing homes has started readmitting residents, and may stay afloat due to a possible agreement with Kindred Healthcare.

Henry to lead RehabCare

Kindred Healthcare Inc. announced in December that Pat Henry has replaced Chris Bird as president of the RehabCare division.

Ventas acquires buildings; stockholder to sell off stake

Ventas acquires buildings; stockholder to sell off stake

The agreement means holders of shares of Cogdell common stock will receive $4.25 per share. This represents a premium of 8% to Cogdell's closing price on Dec. 23, 2011, and 13% to the average closing price of Cogdell common stock over the previous 30 days, according to Ventas.

New sponsor comes to G & E

The board of real estate investment trust Grubb & Ellis Healthcare Trust voted in November to replace Grubb & Ellis with American Healthcare Investors and Griffin Capital as co-sponsors. It will now be called Griffin-American Healthcare Trust Inc.

Better chain ratings fueling upsurge in their stock prices

Better chain ratings fueling upsurge in their stock prices

Six nursing home companies were removed from Standard & Poor's Rating Service downgrade watch last month. The firm ranked Kindred Healthcare at B+ , and Skilled Healthcare and Sun Healthcare Group both at B. The ratings giant also notably affirmed its junk-level ratings for Drumm Investors LLC, Genoa Healthcare LLC and HCR Healthcare LLC.

HCP will pay Ventas $125M

The war between Ventas and HCP appears to be over.

REITs continue buying binge, with smaller deals on the rise

REITs continue buying binge, with smaller deals on the rise

Despite the slow creep back toward traditional bank financing, real estate investment trusts (REITS) continued their buying sprees this fall.

Foundation goes Green

The Robert Wood Johnson Foundation and NCB Capital Impact have begun a $10 million, 10-year low-interest credit facility to finance the building of more Green House homes.

Operators limp to the end of 2011, consider new methods

Operators limp to the end of 2011, consider new methods

Although major nursing home operators have lowered their 2011 outlooks for investors after factoring in reimbursement cuts, experts say some providers may survive better than others in the long term.

Ventas wins another one

After years of legal wrangling, HCP Inc. has agreed to pay the $102 million the courts have said it owes Ventas Inc.

Genesis-Aetna alliance may preview ACO deals to come

Genesis-Aetna alliance may preview ACO deals to come

A partnership between Genesis HealthCare and insurance giant Aetna is expected to drive down hospital readmission rates, provide better patient care and save both companies money.

Wide Ensign buying spree

The Ensign Group purchased several long-term care facilities over the summer. It bought nine skilled nursing and assisted living facilities from Careage Management, along with home health agency Careage Home Care, in July.

Companies regroup for 2012 following Medicare cut news

Companies regroup for 2012 following Medicare cut news

Faced with a shaky economy and a slash in Medicare reimbursement for 2012, skilled nursing facility operators spent August reassessing their financial strategies.

Biggest REIT buy is official

Ventas Inc. completed its $7.6 billion acquisition of Nationwide Health Properties on July 1, creating the largest healthcare REIT in the U.S.

Horizon Bay to Brookdale

Brookdale Senior Living will acquire Horizon Bay Realty, adding 90 communities with over 16,000 units to its portfolio. The deal is expected to close in August.

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