Healthcare, Senior Living, Economics
The healthcare sector has experienced another quarter of record-high distress levels, as indicated by the volume of bankruptcy filings, with the senior living and care sector at the forefront. This bankruptcy trend for senior living remains alarming. In January, I took a look at 2023 bankruptcy levels, the worse year in decades. That post is … Read more
Mergers and acquisitions activity in the seniors housing and care sector set a new quarterly record with 183 publicly announced transactions in the second quarter of 2024, as reported by LevinPro LTC. This represents a 21% increase over the 151 transactions from the first quarter of 2024, and a 49% rise compared to the 123 … Read more
Happy Hump Day! Wow, winter has really settled in for most of the U.S. – cold and snow as far south as Arkansas and cold, almost everywhere. Next week looks a bit more promising, weather-wise. Staffing for all providers is a major issue. For rural facilities, it can be the difference between staying afloat or closing. I … Read more
The Fitch Ratings Public Finance outlook dropped earlier this week and not surprising, their outlook for Life Plan Communities and Non-Profit Hospitals/Health Systems remains negative or in their terms, “deteriorating”. Their forecast is for deteriorating credit conditions in these two sectors due primarily to labor and cost pressures (insufficient supply of labor at higher comp levels … Read more
On Friday, I wrote about expanding litigation due to increasing resident care needs found in senior living, assisted and independent living. Specifically, the issue is primarily around “acuity creep” or residents aging in-place, in environments that may not have the staff and infrastructure to meet their advancing care needs. Friday’s post is here: https://rhislop3.com/2023/12/01/friday-feature-senior-living-litigation-watch-risks-at-ccrcs-independent-living/ I’ve … Read more
Among the many topical areas I watch in health care, I pay particular attention to liability and litigation. As frequent readers/followers know, my firm, H2 Healthcare, LLC, focuses a practice area on clinical compliance and litigation support. My wife and the firm’s Senior Partner is one of the foremost experts (nationally) in litigation support and … Read more
While mergers and acquisitions are generally down, affiliations, closings in some cases, and sponsorship changes in non-profit senior living and care are at a record pace. Back in July, I wrote about the disconnect between acquisitions and the merger/affiliation changes occurring among non-profits. That post is here: https://rhislop3.com/2023/07/24/senior-living-and-care-ma-two-worlds/ A news release from Ziegler Investment Banking, … Read more
Yesterday we got a good look at the status of the SNF industry via a data report from CLA. Today, as the week ends, we can look at the broad industry as a whole and where occupancies are trending. NIC (National Investment Center) released its occupancy snapshot for senior living for Quarter 3. That summary … Read more
On Monday, Fitch (investment rating agency) dropped a non-rating commentary as an alert that should the economy hit a recession (I would argue not “should” but “when”), that Life Plan communities will encounter additional financial pressure. Recall that in December 2022, Fitch issued its outlook on the Life Plan/CCRC market, qualifying it as “deteriorating.” Per … Read more
As economic conditions continue to create headwinds for senior living, I thought this post was timely. Bottom-line: I’m seeing lots of single site and even a number of multi-site, small scale organizations struggling. Depending on their markets and their debt load plus cash position, surviving as independents could be a real challenge over the upcoming … Read more