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Skilled Nursing & Hospitals Hold Hands, a Win-Win Relationship

The Skilled Nursing and Rehabilitation market is in the midst of a transformation and faces a new world of accountability and readmission penalties.  There is a long overdue interest and awareness that nursing home providers provide the key that can reduce unnecessary hospitalizations which trigger financial penalties for both the Skilled Nursing provider and the Hospital.  With the realization that private and public payers are committed to VALUE BASED HEALTH CARE, the days are over when financial success was tied to the census of a hospital or a skilled nursing facility.  

THE HOLDING HANDS RELATIONSHIP is new and demands cooperation from both hospital and skilled nursing provider.  Both share the goal of avoiding unnecessary inpatient stays, but a hospital’s facility, protocols and standards are very different from those of a SNF.  Furthermore, the communication gap between the two providers is great.  Nursing homes frequently do not receive the information they need to properly care for patients discharged from the Hospital.  Although there are many programs that address the problems of the marriage of Hospital and Skilled Nursing Facilities, the financial incentive to change to valued based health in the short term view, is not as important to a skilled nursing provider as it is for the hospital.   Cut in reimbursement rates for readmission are significant for hospitals, not for all skilled nursing facilities yet, but the handwriting is on the wall.

THE GOOD NEWS IS the skilled nursing provider doesn’t get off the hook, which is a tribute to the fact that the healthcare industry is “growing up” and adjusting to the demands of the culture.  For example, a good many health systems are creating a network of SNF’s that agree to meet quality standards, share data, provide certain services and work with hospitals to reduce, avoidable hospitalizations.  Upon discharge from a hospital, a patient is given the list of approved skilled nursing facilities that have met the Hospitals requirements and are included in their network.  Of course the patient can choose any nursing facility, but hospitals can help patients make good choices.  If a skilled nursing facility becomes a preferred provider they enjoy increased census and increased revenue.  In the long term when unnecessary hospital readmission from nursing homes reduces their reimbursement rate, the skilled nursing will survive that has developed a value based health care plan.  The ones that do not meet the new higher standards will not survive or end up in the bankruptcy court.

AND SO THE BEAT GOES ON!  The result of all the effort by various organizations like the Medicare-Medicaid Coordination Office and the Center for Medicare and Medicaid Innovation is resulting in the   integration of hospital and acute care providers.  The result is lower costs and improvement in the quality of care.  The entire healthcare industry is becoming more sophisticated and in the big picture is making giant steps in achieving what is necessary to create a structure that will support the goals of Value based care as well as financial reward.

JCH Sells Bay Area Skilled Nursing Bankruptcy Assets in 363 Sale

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Shep Roylance of the Premier Housing and Senior Housing & Skilled Nursing Brokerage Firm, JCH Consulting Group announces his representation of both the Debtor and Seller in the 363 sale of A&C Healthcare Service’s two skilled nursing assets.  The successful sale consisted of 60 Bed Camden Convalescent Hospital and the 140 bed A&C Convalescent Hospital of Millbrae.

Shep Roylance was employed by the Federal Bankruptcy Court to market and sell A&C Healthcare Services’ three senior housing assets.    At the auction conducted by Alan Stomel, Javed Ellahie and Shep Roylance, three bids were made from Roylance’s pool of qualified nursing home buyers.  The highest bids were made by a two groups of investors highly experienced in the operation of skilled nursing facilities. The Camden Convalescent Hospital transaction was structured by the sale of the business and the assumption of a 15 year lease NNN lease.   The A&C Convalescent Hospital of Millbrae transaction was structured by the sale of the business and the assumption of a 5 year lease.  Landlord and Tenant are negotiating a new 20 year NNN lease for Millbrae.

In his capacity as Senior Vice President of JCH and with unparalleled knowledge of the healthcare industry, Roylance specializes in the acquisition and disposition of skilled nursing facilities and healthcare facilities across the entire spectrum of the senior housing market.  Additionally Roylance’s knowledge and experience in the intricacies of the Bankruptcy court is invaluable in the execution of transactions of facilities in Bankruptcy.  The successful close of A&C’s transaction marks Roylance’s second closing of facilities in Bankruptcy since the beginning of the year.

For more than a decade Shep’s main goal has continued to be the improvement of the quality of care of the senior population, providing world-class nursing home brokerage and assisted living brokerage service to both buyers and sellers of long term care facilities.  Although Roylance services individual owner/operators, regional and national healthcare providers, he specifically targets the representation of institutional investor’s healthcare portfolios in part or in entirety.   As a problem solver in troubled facilities in bankruptcy, Roylance contributes to the continuing growth of a stable healthcare industry.  His judicious representation of the entire spectrum of the senior housing market has earned him an outstanding nationwide reputation.

Multiple Ways to Grow Your Skilled Nursing and Assisted Living Business

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Multiple Ways to Grow Your Skilled Nursing and Assisted Living Business

People who successfully operate skilled nursing and assisted living facilities often assume that the only sure way to continue to grow is through mergers and acquisitions. But before you start looking for new residential care homes or retirement homes for sale, consider taking a more organic approach to growth.

Why M&A Appeals

When your favorite nursing home brokerage firm approaches you with tales of an underperforming or distressed facility that can be purchased at a steep discount, it’s hard to resist. Refurbishing the property and improving operational efficiency can seem like a direct route to increasing your bottom line. You may also choose to pair up with your assisted living brokerage company to make strategic acquisitions that enable you to reposition your company within the residential care market. But according to a recent report from the Assisted Living Federation of America, you may want to consider multiple approaches to growth as the market changes over time.

Alternative Routes to Growth

Organic growth provides another avenue to explore. Instead of choosing to buy a new skilled nursing or assisted living facility, choose to focus on building your census and payor quality mix at your existing facilities.  You may also want to consider the value added play, by adding on to your existing facilities.. The development of independent living cottages or a memory care unit can allow you to attract younger residents or allow you to retain your residents as their level of care increases.  New construction will be especially helpful for those seeking growth in “high end” or “upscale” residential care markets, as their potential clients are likely to be unimpressed with conversions of less opulent facilities. Being able to explain that from the foundation to the roof, the building was designed for the express purpose of providing high-end senior living options.  This could prove invaluable.

Another way to grow your skilled nursing or assisted care company can be revealed by evaluating the services you provide and comparing them to current demand in your market. If your facility frequently receives referrals for seniors seeking a particular type of care, it may make sense to specialize. This way, you can focus your resources on the areas that keep beds full and pull resources away from areas that generate less profit.

Along those lines, you can also look into offering additional services for additional fees. Examples might include wellness activities, fitness facilities, and spa services. You could also convert space that is currently underutilized to provide higher value-added services, such as a memory care unit.

Make Growth Work For You

Whatever path you choose to expand your business, it’s important to work with competent professionals who will share their expertise to help you make the best decision possible. Among It is important, to partner with a senior housing brokerage firm that is known for both integrity and innovation.

Myths About Skilled Nursing Facilities

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Some seniors picture life in a skilled nursing facility with a certain amount of horror. We can thank sensational news stories and pop culture for images of patients trapped in beds or wheelchairs, largely ignored by indifferent and overworked employees. But modern skilled nursing facilities (SNFs) often prove to be a great living situation for their patience. Let’s dispel a few of the myths that make seniors and their family members hesitate to consider this sensible option and share why skilled nursing brokerage professionals are proud to help their clients in this competitive market.

Myth 1: SNFs are for people without loving families.

This couldn’t be further from the truth! There are many reasons why families are unable to provide care for their loved ones, including:

  • Smaller families with fewer adults available to help;
  • Families with members spread over a wide geographic area;
  • Multiple family members who require care (including special needs children);
  • Families without trained medical professionals in the ranks;
  • In many States patience’s may qualify for both State and Federal financial assistance.

There’s another powerful reason to consider SNFs: they can actually help you enjoy spending time with your family more. If  you have long term health problems, recovering for an injury  or need assistance with your medication, cooking, cleaning, bathing, dressing, and so on, your time together will be rushed and feel more like checking off items on a to-do list. if your loved one needs are already being addressed, you can use time together to talk, reminisce, play games, and just enjoy one another.

Myth 2: Once you go into a SNF, you’ll never live on your own again.

Certainly, for some seniors, they have reached a point where they are unlikely to be able to ever live independently again.  Many residents of SNFs are there in response to an injury or illness and may be able to return home or to an assisted living facility once they have sufficiently recovered or gone through rehab. You may also find that your needs change over time, and that a specialized facility such as long term care facility or continuing care retirement  community or at-home care may suit you better in the future.

Myth 3: Patients receive substandard care in SNFs.

In any career, you will find some people who are just in it for the paycheck. But in general, health care attracts people who genuinely want to help, and people who are looking for easy money would never choose to run SNFs, which have substantial State and Federal governmental regulations and supervision and often operate on a fairly slender profit margin. Instead, the people who buy nursing homes see an SNF for sale as a chance to provide exceptional care and an excellent quality of life for seniors. They seek to provide a clean, bright, and well-maintained facility to seniors who receive prompt, courteous, and competent care for medical issues and enjoy visiting with family, friends, and other residents.

As you can see, seniors who are need medical assistance and their family members can benefit from considering a skilled nursing facility.

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