The Trends That Will Shape Skilled Nursing in 2022

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The COVID-19 pandemic continued to put pressure on an already strained skilled nursing industry in 2021. The next 12 months will be yet another test of resilience. Looking ahead to 2022, SNFs must stay nimble and inventive to not only survive but thrive. Private equity will continue to lead the nursing home transaction market pack, and the present staffing situation and waning government support may spell trouble for distressed facilities — all the while home care remains the fan favorite among the Biden administration, Congress and much of the general public. With all that in mind, the following are a few trends the Skilled Nursing News team believes the industry could see in the next 12 months.

Seniors Housing and Care M&A Activity Soared in Q4:2021, According to Acquisition Data from LevinPro LTC

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The number of publicly announced seniors housing and care acquisitions in the fourth quarter of 2021 rose to 129 deals, based on new acquisition data from LevinPro LTC. This represents an 18% increase from the 109 transactions in the previous quarter but is just 1.6% higher than the 127 deals made public in the fourth quarter of 2020. The quarter’s M&A activity represents a record high deal total for any quarter. The $3.6 billion spent on the fourth quarter transactions, based on disclosed prices, dropped by 32% from the previous quarter’s total of $5.3 billion.

Iowa Nursing Home Chain Files for Bankruptcy Protection

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An Iowa nursing home chain repeatedly accused of providing substandard care for hundreds of seniors has filed for bankruptcy protection. QHC Facilities, based in Clive, operates eight skilled nursing facilities including Crestview Acres in Marion as well as in Tama, Madison, Humboldt, Jackson, Webster and Polk counties and two assisted living centers. Collectively, the facilities have a maximum capacity of more than 700 residents. The company employs roughly 300 full-time and part-time workers.

COVID Hasn’t Slowed Managed Care Growth as SNFs Look to Increase Participation

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As skilled nursing facilities work to build back hospital referrals lost during COVID, one way some are opening themselves up to new patients is by increasing their participation in managed care despite the tighter margins that come with it. With skilled nursing occupancy still below pre-pandemic levels, operators simply are no longer in a position where they can say no to these plans and their patients.

DAC Acquisition LLC Completes Acquisition of Diversicare Healthcare Services, Inc.

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Diversicare Healthcare Services, Inc. (“Diversicare”) (OTCQX: DVCR), announced Friday the completion of the previously announced acquisition by merger of Diversicare by DAC Acquisition LLC. The closing follows approval of the transaction by Diversicare’s stockholders at a special meeting held November 18, 2021. Over 99% of the Diversicare common stock represented in person or by proxy at the special meeting, and over 89% of the total number of Diversicare common stock outstanding, were voted in favor of the merger transaction.

As Stimulus Runs Dry, Mozart Healthcare Looks to Expand into New States

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Following several years of strong growth after its initial launch in 2016, Mozart Healthcare took what was supposed to be a temporary year-long pause on the acquisition market in 2019 but like many companies had to change plans in 2020 due to COVID-19. Now heading into 2022, the Skokie, Ill.-based long-term care provider plans to get more aggressive in the skilled nursing market. “As the stimulus money starts running dry people are going to start listing their facilities and we expect that it’s going to … it’s already happening now … but it’s really gonna happen a lot more in the beginning of 2022,” Mozart CEO and co-founder Archie Shkop told Skilled Nursing News.

Report: Nursing Homes Shed 221K Jobs since Start of Pandemic While Other Sectors Have Recovered

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Nursing homes have lost 221,000 jobs since the start of the COVID-19 pandemic, the most among all healthcare providers, a new industry report finds. The report, released Wednesday by the American Health Care Association and the National Center for Assisted Living, shows that while other healthcare employment sectors have recovered some of their job losses, recovery for nursing homes remains stagnant.

Providence Group Acquires Plum Healthcare, Adds 58 New Facilities to Portfolio

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Providence Group has acquired California’s second-largest skilled nursing facility operator as the company expands its presence out west, the company announced this week. The deal with Plum Healthcare Group, which closed on Nov. 5 for an undisclosed sum, includes the operations of 58 total facilities — 57 nursing homes and one assisted living/independent living facility — and the real property on 10 of the assets. Fifty-four of the facilities are located in California, and four facilities are in Nevada. Capital Funding Group provided financing for the deal.

Discovery Care Centre, Newest Addition to The Goodman Group Managed Portfolio

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The Goodman Group, a Minnesota-based company with more than 50 years of experience developing and managing senior living and health care communities, residential communities and commercial properties, announced that Discovery Care Centre, located in Hamilton, Mont., has been added to its management portfolio. Discovery Care Centre offers 58 licensed skilled nursing beds and 35 residences of assisted living and memory care.

3 States Limit Nursing Home Profits in Bid to Improve Care

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Nursing homes receive billions of taxpayers’ dollars every year to care for chronically ill frail elders, but until now, there was no guarantee that’s how the money would be spent. Massachusetts, New Jersey and New York are taking unprecedented steps to ensure they get what they pay for, after the devastating impact of covid-19 exposed problems with staffing and infection control in nursing homes. The states have set requirements for how much nursing homes must spend on residents’ direct care and imposed limits on what they can spend elsewhere, including administrative expenses, executive salaries and advertising and even how much they can pocket as profit. Facilities that exceed those limits will have to refund the difference to the state or the state will deduct that amount before paying the bill.