Healthcare, Senior Living, Economics
Since the pandemic (COVID), capital investment in senior living has been disjointed (to say the least). The pandemic constrained demand and as the economy rebounded from periods of lockdowns, supply shortages, work reductions, etc., inflation snuck in. In turn, to battle inflation, the Federal Reserve steadily raised interest rates. The rise in rates changed the … Read more
Last week I wrote about Fitch Ratings updates to their non-profit CCRC rating criteria. The expectation with the changes was that twelve percent of the rated CCRCs could be subject to Under Criteria Observation (UCO). What has occurred as a result of Fitch Ratings Update is that eighteen CCRCs have been impacted, falling under UCO. … Read more
Fitch Ratings has completed updates to its ratings criteria for not-for-profit continuing care retirement/life plan communities (CCRCs), enhancing the reflection of the risk profile for these rated entities. These changes come after a period of commentary on a draft released earlier this spring. The criteria modifications aim to more accurately represent the distinct risks associated … Read more
According to data released by NIC (National Investment Center) last week, senior living occupancies ticked up in the first quarter. This is a trend that has continued since the pandemic occupancy “crash”. Other economic data, however, suggest that challenges remain for continued growth, especially within the CCRC/Life Plan sector. The NIC data is here: 2Q24-NIC-MAP-Market-Fundamentals … Read more
Happy Hump Day! Yesterday, I wrote a post regarding the economy and elements that correlate to CCRC performance. In that post, I referenced Fitch Ratings and their “deteriorating” outlook for the sector. Interesting enough, on the same day, Fitch issued a comment that reinforces a deteriorating outlook for CCRCs. The quick comment from Fitch is … Read more
Recently (June 12), the Federal Reserve held its latest FOMC (Federal Open Markets Committee) meeting and decided to maintain the current Fed Funds rate within the range of 5.25% to 5.50%. The reasoning remains the current position of the economy, inflation therein, signals that inflation is a bit more persistent, and that without more definitive … Read more
Monday, Fitch Ratings dropped a Non-Rating Commentary about staffing challenges in Life Plan and SNF organizations. Per the release, “Though growing for some time, payrolls for U.S. life plan communities (LPCs) and skilled nursing facilities (SNFs) are still well off the pace needed to reach a full post-pandemic recovery.” Bureau of Labor Statistics (BLS) data … Read more
Happy Hump Day! A favorite movie series of mine is Back to the Future, particularly parts 1 and 2. Made in the 80s, both are fun to watch in terms of their references to points in time, especially in part 2 where the “future” is 2015! Having lived through 2015, my memories don’t quite compare … Read more
While it is important to celebrate that senior living occupancies are up to pre-pandemic levels, it is also important to note that in most cases, the data quoted via NIC for example, is regionalized and nationalized. Likewise, the results (the occupancy levels) are still not capable of generating strong, positive margins. Occupancy levels in the 87% to … Read more
The Conference Board, a renowned non-profit research organization, has recently released a comprehensive report that sheds light on the business outlook and concerns of CEOs for the year 2024. This study offers valuable insights into the minds of top executives, highlighting their attention towards the economy and organizational talent. In this post, I’ll delve into … Read more