We’re live from the NIC Fall 2022 Conference in Washington, DC, where lenders and operators gather to make deals and get ahead of changing economic conditions. In this episode, Jessica Johnson, manager of healthcare banking for BOK Financial, discusses how persistent inflation and rate increases are impacting the skilled nursing sector as the market begins to shift.
The good news, Johnson says, is there’s plenty of capital still available for those interested in growth, especially for those who see opportunities in acquisitions. And as financial pressures begin to reveal weakened operators, well-positioned competitors are finding they have more choices.
“What I tell my borrowers is, if a deal makes sense for you, you should move forward with it while you have the opportunity,” she says, noting that value-add propositions in the same geographic footprint might make the most sense, especially if they might potentially help reduce labor costs through a shared workforce.
McKnight’s Long-Term Care News Senior Editor Kimberly Marselas leads a fast-paced conversation in which you’ll learn from an experienced healthcare lender and get her predictions on future rate increases, the potential for recession and why a slow-down could be good for skilled nursing providers.