Skilled nursing and assisted living facilities across the country are having trouble hiring enough caregivers, and many have turned to perks like referral bonuses and transportation to lure more talent. The industry historically grappled with high employee turnover for its lower-skilled jobs. But now nursing facilities are facing reputational hits from the pandemic and a red hot market for minimum wage workers.
A tough operating environment for some skilled nursing operators will likely lead a portion to close their doors in 2021, but misfortune for some should result in growth opportunities for investors, the head of one large SNF network told an executive retreat Tuesday. “This year is going to be a tough year in the SNF industry, and we’re not likely going to get the same level of help that we got last year,” said Cory Christensen, CEO of California-based Plum Healthcare Group. “I think there are going to start to be again good acquisition opportunities, particularly good ones,” Chrtsensen added.
The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the EnsignTM group of companies, announced today that, effective June 1, 2021, it acquired the operations of the following skilled nursing facilities in Washington: Mira Vista Care Center, a 94-bed skilled nursing facility located in Mount Vernon, WA; Shoreline Health and Rehabilitation, a 114-bed skilled nursing facility located in Shoreline, WA; The Oaks at Lakewood, a 80-bed skilled nursing facility located in Lakewood, WA; and The Oaks at Timberline, a 98-bed skilled nursing facility located in Vancouver, WA.
Cushman & Wakefield’s Senior Housing Capital Markets team has completed the portfolio sale of The Addington at Wellington Green and The Institute for Healthy Living at Jupiter, two skilled nursing and assisted living communities located in Palm Beach County, for $116 million. The Addington at Wellington Green is a 120-bed skilled nursing and 52-unit assisted living community built in 2011. The Institute for Healthy Living at Jupiter is a 129-bed skilled nursing, 62-unit assisted living, and 30-unit memory care campus that just completed construction and received licensure.
Covenant Health and Bangor Nursing & Rehabilitation Center are excited to announce that they have signed a definitive agreement to proceed with the acquisition of Bangor Nursing & Rehabilitation Center by Covenant Health. This announcement follows nearly 10 years of successful collaboration and partnership between the two not-for-profit healthcare organizations. Final approval of the agreement is pending review by the Department of Health and Human Services for the State of Maine.
The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the EnsignTM 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 real estate and operations of Windsor Rehabilitation and Healthcare, a 108-bed skilled nursing facility, located in Terrell, TX. The acquisition was effective May 1, 2021. This acquisition brings Ensign’s growing portfolio to 236 healthcare operations, 22 of which also include senior living operations, across thirteen states.
Welltower®Inc (NYSE: WELL) announced Wednesday that it has partnered with a Safanad-led investment group to recapitalize HC-One, the largest UK-based seniors housing operating platform. This recapitalization will de-leverage HC-One, extend its debt maturity by five years and inject significant new equity in the company, enabling it to invest in its communities and people, enhance resident experience, and augment its operating and technology platform. HC-One owns 282 care homes and leases an additional 45 care homes across the United Kingdom.
Nursing homes and long-term care facilities, where 182,000 Americans perished during the covid pandemic, have taken heat from government regulators, residents and their families. Now the industry is hearing it from an unexpected source: their investors. Investors who own large shares of nursing home companies now are demanding that the operators improve staff working conditions and the quality of care. Nearly 100 investor groups that manage $3.3 trillion in assets in the U.S. and abroad told nursing home companies in a recent letter that they should increase staffing levels, boost staff pay, offer paid sick leave, improve resident safety programs and allow staff members to unionize.
Abri Health Care, the company that emerged from the bankruptcy of skilled nursing operator Senior Care Centers, itself filed for Chapter 11 bankruptcy protection on April 16, according to landlord LTC Properties (NYSE: LTC) and court filings. Senior Care Centers LLC, now an Abri subsidiary, is owned 100% by Abri Health Services, LLC, which in turn is 100% owned by Abri Care Group, LLC; it is also included in Abri’s Form 201 filing as an affiliate in the bankruptcy case.
Franklin, Tenn.-based American Health Partners has agreed to become a subsidiary of the Mitchell Family Office, an investment firm that concentrates on the health care sector. American Health Care Partners provides a range of senior care services across nine states, including hospice. American Health Partners is currently privately owned. In addition to hospice, the company operates senior living, skilled nursing and rehabilitation facilities, home health, pharmacy and medical staffing businesses as well as psychiatric hospitals.
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