Genesis Healthcare Inc., a major national nursing home operator that has long struggled financially, announced Wednesday that it will delist its shares from the New York Stock Exchange and receive an investment that could give a New York private-equity firm control of the Kennett Square company. ReGen Healthcare LLC, a new private-equity-backed firm, has agreed to invest $50 million in Genesis, with the possibility of investing $25 million more by April 15. If both deals are completed, ReGen would control 43% of Genesis’s shares.
Even before the COVID-19 pandemic trained an intense spotlight on the financing of nursing home operations and real estate in America, private equity investors in the sector found themselves under the microscope. Moving forward, the pandemic will likely have a double-barreled effect on PE interest in the space, with a more selective crop of companies looking to make deals centered on quality operations, a pair of private equity leaders said during Skilled Nursing News’ virtual Payments, Policy, and Capital summit last week.
Back-and-forth shifts in patient volume between skilled nursing facilities (SNFs) and in-home care providers have been happening for years. Yet health care policymakers and executives are now examining such shifts — and the potential advantages of delivering care inside an individual’s home instead of a facility — more closely due to the ongoing COVID-19 pandemic. And so far, two things are clear.
The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ group of companies, which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services, announced today that it acquired the operations of San Pedro Manor, a 150-bed skilled nursing facility located in San Antonio, TX. The acquisition was effective February 1, 2021 and will be subject to a long-term, triple net lease. This acquisition brings Ensign’s growing portfolio to 232 healthcare operations, 24 of which also include assisted living operations, across thirteen states. Ensign owns 94 real estate assets.
Nursing home occupancy rates have plummeted during the COVID-19 pandemic, with hospitals, families and others opting for in-home care over institutional care settings. And that trend may very well become permanent, recent data suggests.
The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the EnsignTM group of companies, announced today that it acquired the operations of three skilled nursing facilities in Southern California. The acquisitions include: Golden Hill Post Acute, a skilled nursing facility with 99 skilled nursing beds located in San Diego, CA; St. Catherine Healthcare, a skilled nursing facility with 99 skilled nursing beds located in Fullerton, CA; and Camino Healthcare, a skilled nursing facility with 99 skilled nursing beds located in Hawthorne, CA.
The pandemic is reshaping the way Americans care for their elderly, prompting family decisions to avoid nursing homes and keep loved ones in their own homes for rehabilitation and other care. Americans have long relied on institutions to care for the frailest seniors. The U.S. has the largest number of nursing-home residents in the world. But families and some doctors have been reluctant to send patients to such facilities, fearing infection and isolation in places ravaged by Covid-19, which has caused more than 115,000 deaths linked to U.S. long-term-care institutions. Occupancy in U.S. nursing homes is down by 15%, or more than 195,000 residents, since the end of 2019, driven both by deaths and by the fall in admissions, a Wall Street Journal analysis of federal data shows.
As many as 66% of nursing homes say they could close in 2021 due to COVID-19 costs, according to a new survey of nursing home providers. The American Health Care Association and National Center for Assisted Living, which represents more than 14,000 nursing homes and assisted living facilities across the U.S., found 90% of the 953 nursing homes that responded said their profit margins are 3% or less, and 65% said they are currently operating at a loss. The biggest increase in cost was staffing.
Nexion Health, Inc., a leading skilled nursing operator serving the Southern region of the United States, announced Tuesday it is bringing nine existing healthcare and rehabilitation centers under its operational expertise in facilities across Texas. Combined, the nine new Nexion Health facilities will care for 462 residents and employ 594 nurses and administrators. Nexion Health affiliates already provide care for 1,001 residents and employ 1,357 staff members at 16 other Texas facilities, reaching from the southeast region to the Rio Grande Valley, to west Texas and many points in between.
The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ group of companies, which provide skilled nursing and assisted living services, physical, occupational and speech therapies and other rehabilitative and healthcare services, announced today that it acquired the operations of Hays Nursing and Rehabilitation Center, a 116-bed skilled nursing facility, located in San Marcos, TX. The acquisition was effective December 1, 2020 and will be subject to a long-term, triple net lease.
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