Here's what happened in senior living last month.
Publicly announced seniors housing and care transactions were up 17% in 2015, according to the Levin & Associates Health Care M&A Report. 2015 was also the second year in a row to show more than 500 total deals. S. Scott Stewart of Capitol Seniors Housing noted, however, that 2015’s overall portfolio quality wasn’t as strong as 2014. Even though the transaction count is significantly higher, dollar amounts are down, from $25.5 billion recorded in 2014 to $13.97 billion in 2015.
Source: Senior Housing News. Seniors Housing M&A Sets Records in 2015.
Wallet Hub recently compared the 50 states plus the District of Columbia to identify the best and worst places to retire. They assessed 24 factors falling into three main categories: affordability, quality of life, and health care. The top five in order were Florida, Wyoming, South Dakota, South Carolina, and Colorado. Rounding out the bottom five were Vermont, Connecticut, Hawaii, D.C., and Rhode Island.
Source: Wallet Hub. 2016’s Best and Worst States to Retire.
The latest issue of the NIC Insider reports occupancy for both independent and assisted living was up in Q4 of 2015. Independent living occupancy was higher than the previous year, while assisted living was down 50 basis points. Independent living also slightly outpaced assisted living occupancy overall (91.4% and 88.4% respectively at the end of 2015). Both occupancy and rent growth have gained steady ground since 2009, keeping pace with a gradually growing development pipeline.
Source: NIC Insider. Seniors Housing Net Absorption Outpaces Inventory Growth in Q4 2015.
This month the AARP released Caregiving Innovation Frontiers, an in-depth infographic charting predicted tech revenue for six areas of senior care. In each category, their findings predict how technology will be leveraged for a total market revenue of $279 billion by 2020. By far the largest revenue sector is Daily Essential Activities, predicted to comprise $207 billion of total industry revenue. Other areas include Health and Safety Awareness, Care Coordination, Transition Support, and Social Well-Being.
Source: AARP. Caregiving Innovation Frontiers
Legislation in both New York and Missouri is facing criticism from health care organizations that oppose pay increases for home care workers. Much of the dispute arises from providers claiming they won’t receive adequate subsidies or reimbursement to absorb the estimated costs. Opponents of the increase testified in budget hearings to urge increased government aid to offset costs that can’t be passed on to consumers.
Source: Home Health Care News. Proposed Minimum Wage to Cost Home Health $1.7 Billion