The California Association of Healthcare Facilities conference took place in Palm Springs this year from November 13^th to the 15^th. 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.

The National Investment Center held its annual conference in Chicago, Illinois on September 26 this year. The three-day meeting hosted over 3000 participants from the senior housing industry.

Additionally, there were new groups attending, including operators and investors from Asian markets and US buyers from other real estate product types. This further proves that the senior housing industry has much to offer buyers, operators, investors and specialists alike.

The JCH Group attended the NIC conference and met with nearly 40 clients over two days. Each client meeting reported good news, growth and new opportunities in the works, which is the consensus for all involved in the senior housing industry.

Positive Outlook for Senior Housing’s Future

Currently, the marketplace is offering a great deal of debt and equity, funding projects, facility openings, as well as mergers and acquisitions. With so much activity in the market, everyone in attendance had someone to meet and an agenda to fulfill.

There have recently been large portfolio sales and merging of REITs. Most notably, Sabra REIT and CCP REIT have merged. These moves from senior housing titans have cemented the foundation of the marketplace, providing stability and direction for smaller operators and investors.

Reports Significant Amount of New Construction Across the Country

Construction continues to take place across the country, while more saturated in some markets than others. Still, new product always adds value to the senior housing industry and makes for lucrative senior housing investments.

It also signals that operators are doing well. In particular, operators and managers in assisted living and memory care facilities have experienced solid growth patterns. However, those involved in skilled nursing facilities continue to fight through overall turbulence set to last a few more years. Veterans of the senior housing industry are waiting to see how the space for skilled nursing facilities works through some of its current issues.

Conference Season Has Just Begun

The senior housing industry’s conference season has just started with NIC’s Fall Conference. These large-scale meetings are a perfect place for operators to meet potential lifelong business partners. With informational sessions, panels, seminars, booths and meet-and-greets, those looking for their next senior housing investments are sure to find the resources they need.

The JCH Senior Housing Investment Brokerage expects to attend the next four large conferences popular in the senior housing industry.

• California Assisted Living Association (CALA) – November, Palm Desert, CA
• California Association of Healthcare Facilities (CAHF) – November, Palm Springs, CA
• American Senior Housing Association (ASHA) – January 2018, Orlando, FL
• Regional NIC – March 2018, Dallas, TX

Join the JCH Group at any of these conferences to meet with our investments specialists.

Work with the JCH Investments Specialists for Smart Decisions

The JCH Senior Housing Investment Brokerage is the best real estate brokerage working in the senior housing industry. Our investments specialists are highly experienced, providing the type of direction, guidance and information necessary to navigate the growing senior housing industry.

To make your next step in the senior housing industry the right one, work with the JCH investments specialists. Contact Nick Stahler, 714-7463-1663 or Jim Hazzard 714-463-1677 today.

Operator Ethics

The senior housing industry exists to serve the senior community. It provides a safe environment with a variety of services necessary for a higher quality of living in the advanced life stage. Hundreds of thousands of families rely on the integrity of the senior housing industry to provide for their elderly family members. With more and more seniors needing placement in facilities, the senior housing industry is booming. However, in recent months some issues have occurred because of natural disasters.

Hurricanes, wildfires and flooding have torn cities apart. Although, the clear majority of operators weathered these storms with great dedication to the care of their patients and residents. These national emergencies have revealed a lack of protocol and responsibility assumed by some operators in the senior housing industry.

Fourteen Seniors Died in Hurricane Irma

When Hurricane Irma hit Florida, thousands were displaced from their homes. Many did not have access to electricity, gas or other resources for many days. This was also the case for one skilled nursing facility.

Without air conditioning needed for heat relief and persistent flooding, 14 senior residents died while in the care of a negligent operator. Why did this operator fail to evacuate or provide for the patients?  Unfortunately, the most probable cause was a monetary loss for the operator.

Every operator in the senior housing industry is required to outfit the physical plant for emergencies. There must be an evacuation plan in place. In the event of a disaster, operators must move residents to another location, whether that is another facility or into a hotel. However, the cost for the evacuation comes out of the operator’s pocket. In addition to other costs like food and water, the overall price grows exponentially. As a result, some negligent operators may be hesitant to follow through with emergency protocol.

The One Percent That Taints the Senior Housing Industry

On a day-to-day basis, there are operators of skilled nursing facilities who overcharge residents, withhold services or provide unnecessary additional services to force inflated billing. Though few in overall numbers, these are operators of skilled nursing facilities and assisted living facilities who prioritize profit over the health and safety of the residents.

Unethical operators make up a small percentage, but they are enough in number to taint the senior housing industry’s reputation. Because of true horror stories like that of Hurricane Irma, family members are potentially less likely to place their elders into the care of senior housing. Not only does this keep professional care from the seniors who need it, the industry itself suffers.

Successful Operators Know Their Responsibility

For operators to run facilities in the senior housing industry, they must pass a series of background checks. Even the smallest infraction stops these individuals from practicing in the senior housing industry. These tight standards are also why malpractice by operators is rare.

The successful operators active in the senior housing industry understand their responsibility. They provide high quality care and attention, meet the needs of the residents and constantly work to make the environment a better home. These operators are the backbone of the senior housing industry and the reason why the industry is as strong as it is.

Do the Right Thing with the JCH Group

The JCH Group is the top brokerage in the senior housing industry because we support ethical operations. At the base of our work, we provide for the senior community and we stand by the operators who hold themselves to a higher standard of performance.

Whatever investment you seek in the senior housing industry, make it the right move with our help. Our resources and information are valid and forthright, so your housing investment stands on principle. Contact one of our investments specialists for more information.

What is Assisted Living

The senior housing industry offers several distinct types of investments for future operators. Each type appeals to its own consumer base, which comes down to the type of care provided at the facility. What is assisted living: Assisted living facilities are for senior residents needing moderate assistance.

Assisted living fits into a very specific space in the senior housing industry, it’s an excellent choice for operators searching for their next senior housing investment.

Locating Assisted Living in the Senior Housing Industry

There are four major categories of senior housing: independent living, assisted living, memory care and skilled nursing facilities.

Independent living facilities are communities designed for senior residents who need little to no additional care. At its base, seniors live in their own unit at a significantly lower cost than an assisted living facility. There is little to no assistance medically, but they do offer housekeeping, activities and meal service.

On the other end of the senior housing spectrum, skilled nursing facilities are designed for senior patients needing a high-level of specialized medical care, one step below hospitals.

In between those two sectors are assisted living and memory care.

These healthcare properties come with plenty of services to help build a better quality of life and a stress-free environment in the advanced life stage.

Services Provided by Assisted Living Facilities

Assisted living facilities deliver a number of services for their senior residents. These services are an important reason why many seniors thrive in assisted living communities.

Seniors receive:

• Reminders and assistance with medication
• Prepared and served meals with proper nutrition
• 24-hour monitoring
• Transportation
• Incontinence care if needed
• Help with daily living activities
• Social Activities

In this spectrum of the senior housing industry, seniors have the freedom to do as they please without the constraints of age-related handicaps.

Better Quality of Life for Senior Residents in Assisted Living Facilities

With 24-hour care and assistance, seniors experience the best health and life styles available. Assisted living facilities have staff members handle the chores of everyday life so that seniors can enjoy their time while in their best health.

Residents are encouraged to stay social and active. The feeling of community they have with other seniors delivers excellent benefits for both mental and emotional health.

Memory care facilities or memory care units are outfitted to keep residents’ safe. It includes egress doors that open only after 15 seconds of pressure. This protects elders from wandering, which is a growing problem for those developing Alzheimer’s or dementia. There are other safety measures in place to minimize accidents and hazards. In the event of a slip or fall, protocol ensures immediate help and relief.

Buying Assisted Living Facilities in the Senior Housing Industry

Assisted living facilities are an excellent choice for those interested in entering the senior housing industry. With the population of seniors growing day by day, the demand only increases. However, acquiring this senior housing investment is complex. The process is lengthy and buyers should not go through it alone.

There are many facets to the transaction that require extensive knowledge and experience. In addition, to protect buyers from making poor choices, it is highly recommended that investments specialists are consulted.

Work with JCH for Your Senior Housing Investments                                                   

The JCH Senior Housing Investment Brokerage is one of the most experienced brokerages in the senior housing industry. Our team has navigated hundreds of high-yielding senior housing investments.

As the leading investments specialists, we are confident that we can design the best approach to your senior housing investment in the senior housing industry. To learn ore about buying assisted living, contact our team today.

Bridging the Gap – Small and Large Operators

Over the past 20 years, the senior housing industry has grown and matured in tremendous ways. With a booming population of seniors needing higher and higher levels of care, senior housing investments are a win, win for all parties involved.

The JCH Senior Housing Investment Brokerage has proudly served the senior housing industry, for nearly 20 years, adapting to changes and helping clients secure senior housing investments that yield serious returns.

Unfortunately, not all participants in the senior housing industry have matured at the same pace. While larger operators managing multiple facilities typically have a codified method of operation, smaller operators do not.

Unfortunately, this fragmented part of the senior housing industry where small operators are unable to properly communicate their financial performance to large operators, deals maybe cut short creating a larger gap between the two.

The Big Disconnect in the Senior Housing Industry

Mom n’ Pop operators, or those families operating one or two facilities, oftentimes create their own standards of operation. Investment specialists and brokers usually discover that data collection and financial records lack formality, or are organized in a disorderly or confusing manner. This may be because these operators have fewer facilities to manage and are not exposed to broad based, national operational norms.

This is fine if these small operators do not want to conduct transactions with larger industry players. However, if they’re searching for their next senior housing investment, want to divest, or recapitalize, discrepancies in financial reporting more often than not, becomes a big problem.

Though the information provided in their financial reports may not necessarily contain errors, information may be organized incorrectly making it difficult for buyers or sellers to access important data.  As a result, what could have been the next senior housing deal, becomes a bust.

JCH Makes the Senior Housing Investment Possible

A standard format in financial reporting creates opportunities for successful transactions. A unified method of data presentation means that buyers and sellers can quickly access information and make decisions.

The big players in the senior housing industry all expect clear and concise financial reporting in order to confirm valuations and proper underwriting. The JCH Group makes the next senior housing investment possible for smaller operators.

Our financial analysis service is a fantastic opportunity for small-scale operators to prepare for the big move. They get to see what larger operators see, and what they look for in a proper senior housing investment opportunity.

The JCH investment specialists take the time to analyze and assess all data in the financials. Information is then deconstructed and reassembled into the format standard in the senior housing industry. Extraneous categories are removed while any missing information is collected and added.

With a remodeled financial report, information adheres to the industry standard and is digestible by anyone in the senior housing industry.

The JCH Group for Your Next Senior Housing Investment

The JCH Consulting Group has served operators small and large in the senior housing industry. For the past 20 years our expertise has created opportunities, navigated storms and solidified transactions for large-scale senior housing investments.

For your next senior housing investment, depend on JCH. To have your financial reports reviewed, contact Nick Stahler at 714-463-1663.

Middle Market in Senior Housing

There is absolutely no doubt that the senior housing industry is in a cycle of robust construction. New buildings are being built every single day, but for who?

Despite the growing number of investments in the senior housing industry, operators and developers are consistently ignoring a largely underserved market.

The Middle Market is Untapped

The middle-class market of the senior housing industry targets affordable and low-income residents. There are very few operators serving the middle market with new construction, but it is easily the largest senior population needing residence.

Most developers are opting to construct new buildings. The land is expensive and with the cost of new construction, service and rental fees must also increase. Residents in these new facilities can pay upwards of $8,000-$10,000 a month. Because of high construction costs, it is nearly impossible for new buildings to house middle to low-income residents and still maintain profitability.

Unfortunately, a large, growing, part of the senior demographic cannot afford these high monthly payments and need more affordable care.

Get to Know the Middle Market Residents

Residents living in assisted living facilities pay an average of $4,000 to $6,000 a month. For private pay senior housing industry facilities, residents pay through lifelong investments, whether that is a 401K, real estate or traditional savings accounts. Middle class residents also have these lifelong investments, but may not be able to afford such a high price tag.

The middle-class market still works on a private pay model and current residents pay between $2,000 and $3,500 a month. This is a much more reasonable price range and presents a fantastic opportunity for the savvy developer.

Read: How To Increase Profits While Dealing With Rising Expenses

Lastly, the remaining group of the senior housing industry demographic is the residents receiving Medicaid. Seniors receiving federal aid are able to do so because they have little to no net worth. These seniors are often placed in facilities that operate specifically on government subsidies.

The difference in pay model for low income/government subsidized housing may discourage operators from participating. For those developers, the middle market may be an extraordinary opportunity for their next investment in the senior housing industry.

Make the Next Senior Housing Investment in the Middle Market

Even now, few operators see the potential of the middle market. But, it is more than possible to make returns housing moderate to low-income residents.

Operators and developers can do so by picking up existing facilities on affordable land away from the city without compromising on population density. Minor renovations make the senior housing investment proper for the middle class market while keeping monthly costs low for residents.

The need for senior care will never diminish. People are living longer than ever before and will need care. The middle class market is largely underserved, and looking for care.

Navigate the Senior Housing Industry with the JCH Group

The JCH Senior Housing Investment Brokerage is the leading brokerage for healthcare properties. Developers and operators alike depend on our senior housing investment specialists to navigate the tough terrain of the senior housing industry.

To find your perfect opportunity in the middle market, speak to our team for guidance.