The California Association of Healthcare Facilities conference took place in Palm Springs this year from November 13th to the 15th. This unique conference invites all types of members from the senior housing and skilled nursing industry which included vendors, consultants, brokers, attorneys and operators.
With such a wide array of attendees, the 2017 CAHF created special opportunities to exchange information, ideas and partnerships with all levels of players in the senior housing and skilled nursing industry.
JCH Levels with Facility Operators
The key to sustaining revenue in the senior housing industry is the quality of work done by facility-level employees. The boots on the ground and the type of service they provide residents and patients keeps the economy within the senior housing industry going strong.
At other conferences, the JCH Group has had few opportunities to hear stories firsthand from facility-level employees. However, at 2017 CAHF, JCH investments specialists were able to do just that. With the exhibit hall and planned gatherings, JCH representatives conversed with several caregivers working in skilled nursing facilities and assisted living facilities. These interactions reaffirmed our current understanding of facility-level operations, what employees deal with on a day-to-day basis and what issues they encounter.
As brokers in the senior housing industry, keeping a grounded and current index of information is important. This helps JCH better understand the position of their clients. It also helps direct managers and operators to protect and preserve the vital dynamic between caregivers and residents.
Cocktail Hour with Lancaster Pollard
On Monday, November 13, the JCH Group co-hosted a cocktail hour with Lancaster Pollard for the second year in a row. Working with the finance company has resulted in several strong senior housing opportunities. With 30 mutual clients in attendance, the cocktail hour cemented our collaboration in creating senior housing investment deals that are properly financed and designed to flourish in the senior housing industry.
Discussions with clients revealed the downtrend of mom-and-pop operators. More than ever before, these small one or two asset operators are exiting the California Skilled Nursing space.
As a consensus, an operator of one or two assets, have become increasingly difficult to be profitable. On top of maintaining the skilled nursing facility, they also must negotiate contracts with HMO, Medicare and Medicaid. With less beds and, therefore, patients, to benefit from contracts, these small operators lose leverage to negotiate deals with payor sources that may be available to larger operators.
The Senior Housing Industry Grows in Value
The senior housing industry continues to grow both in size and in value. Skilled nursing facility operations forge ahead and valuations remain robust. Even older assets in CA retain value well. This is due to new construction simply costing too much. New construction costs are far too high compared to the reimbursements received from the government which directly affects the bottom line. Essentially, many operators find that they cannot afford to build new skilled nursing facilities in California at the current reimbursement rates for the skilled nursing industry.
Work with the JCH Group for Housing Investment Success
The JCH Group is the leading brokerage and investments specialist in the Senior Housing space. As an active member of the senior housing industry, we constantly update our knowledge base and resources, giving our clients the edge in their senior housing investments. From skilled nursing facilities and assisted living facilities to other healthcare properties, we find the deal best for you.
Follow us on our conference schedule. The JCH investments specialists will be available at the American Senior Housing Association (ASHA) Conference, from January 30 to February 2 of 2018 in Florida.