The outcome of Tuesday’s election will have “enormous implications on everything, including long-term care,” according to the leader of the nation’s largest nursing home association.
Multiple issues, from another stimulus bill to liability protection for healthcare providers, will be settled based on whether Republicans retain control of either the presidency or Senate or if the Democrats make a clean sweep of both, explained Mark Parkinson, president and CEO of the American Health Care Association/National Center for Assisted.
Parkinson’s comments came during LTC Properties’ third quarter earnings call Friday, where he discussed the future of the sector post-Election Day through 2021.
“The conventional view in DC, and I agree with it, is that there is 100% chance there will be another stimulus bill. The outcome of the election isn’t relevant to if there will be a bill — there will be a bill either way. What it is relevant to is the size of the bill,” Parkinson said.
He explained that if Republicans retain control of either the presidency or Senate, the stimulus bill will likely be somewhere around $1.8 to $2.2 trillion and a significant portion of that will be added to Coronavirus Aid, Relief, and Economic Security (CARES) Act funding.
If Democrats win everything, Parkinson said “it’s possible” there won’t be a stimulus bill during the lame duck period and they may wait to finalize legislation when they officially take office.
“If the Democrats take over, it will be larger than the $1.8 trillion to $2.2 trillion. It will be more like the $3 trillion bill that they passed back in August, and that may be just the beginning. They are clearly wanting to spend significant amounts of money to stimulate the economy,” Parkinson said.
“It’s not really a question of whether there will be a stimulus bill. It’s just a question of how large the bill will be, and there will be important things in the bill that will help both skilled nursing and assisted living,” he added.
Liability protections
Parkinson also noted that if Republicans keep some kind of control, any future stimulus bill will likely have a lot of liability protections for healthcare providers. However, there are two trains of thoughts on the issue if Democrats take control, he added.
The first is that liability protections won’t be a priority for Democrats, while the other is they could come to an understanding that liability protections for providers will be necessary in order to move the economy forward.
“The answer to whether or not there will be a federal liability solution is highly tied to the election,” Parkinson emphasized.
LTC Properties writes off $5.5M Genesis debt
Executives reported total revenue for the quarter decreased by $8.9 million, compared to last year’s third quarter. The drop was primarily due to a $5.5 million write-off of straight-line rent receivables related to Genesis Healthcare and another unnamed operator as a result of transitioning their leases to a cash-basis.
The execs also reported that average monthly occupancy for the firm’s skilled nursing was 72% in June and 70% in both September and October.
“The market remains challenge but I firmly believe that LTC has built a strong reputation as a creative financing partner in the seniors housing and care space by thinking outside of the REIT box to create solutions that provide our operating partners with the financing they need to help grow their business,” said Wendy Simpson, LTC Properties chairman and CEO, during the call.
For more coverage on these topics, read about them on the website of our sister publication, McKnight’s Senior Living, in these articles:
Parkinson ponders post-election landscape for senior living
Operators better prepared to manage next pandemic: LTC Properties CEO
