Executives with LTC Properties are hopeful that the long-term care industry has turned the corner with COVID-19 after the company saw signs of recovery during the first quarter of 2022.
“As a needs-based industry, I believe the long-term picture for our industry remains positive, based on solid demographics and fundamental needs for the care of our senior population,” said Wendy Simpson, LTC Properties chairman and CEO, during a first quarter earnings call Friday.
The company’s skilled nursing occupancy rates increased in several markets during the quarter.
Average monthly occupancy among its skilled portfolio was 73% by the end of March — up from the 72% the company reported at the end of January, and 70% reported in September.
For its private-pay units, occupancy was 78% at the end of both March and January. The figure was only 76% in September.
LTC Properties’ investment pipeline is also currently valued around $70 million opportunities, executives reported.
“The pace of pipeline opportunities is robust and hasn’t really slowed down since late last summer,” Clint Malin, LTC Properties chief investment officer said. “[Our current pipeline] spans private pay and skilled nursing is geographically diverse and includes operating partners move to LTC as well as existing partners.”
Only one current investment opportunity involves skilled nursing, he said, and it’s a development project with Ignite Medical Resorts. “We provided them a loan to acquire a piece of land in Missouri,” Malin said.
Simpson also discussed the planned decrease in SNF Medicare reimbursement rates. She said there’s a desire among industry leaders to get the Centers for Medicare & Medicaid Services to phase in the cuts.
“They have good hope that we can do it and from our operator calls, they’re very, very active in getting these letters out to CMS and [their legislatures],” she said. “So, there’s a possibility.”
