SavaSeniorCare is one of the largest providers of skilled nursing and assisted living services in the nation, operating approximately 180 skilled nursing facilities in 23 states entering 2020. Select facilities provide Memory Care, Intravenous Therapy Services, Respiratory Therapy Services, Dementia Services and all facilities provide Rehabilitation Services.
The COVID-19 pandemic has led to serious occupancy hits for skilled nursing facilities, including SavaSeniorCare. CARES Act funds helped the company temporarily, although it experienced a 10% decrease in total occupancy, for 14,100 in total occupancy.
As a result, SavaSeniorCare announced a plan to transfer the operations of 48 skilled nursing facilities and assisted living properties in eight states by the end of next year, as the company plans to focus its resources regionally. SavaSeniorCare plans to move forward with two divisions with properties concentrated in specific geographic regions.
SavaSeniorCare is working with its landlords to find new operators for the buildings, which are located across a wide swath of the country: Properties in California, Colorado, Illinois, Kansas, Michigan, Mississippi, and Wyoming are set to change hands, with a target completion date by the end of 2021.
Earlier this year, LTC ACO, the accountable care organization affiliated with Genesis HealthCare partnered with various operating entities linked to SavaSeniorCare Administrative Services, LLC. Under the partnership, select physicians that provide care to long-term residents in SavaSeniorCare facilities can participate in the Medicare Shared Savings Program (MSSP) through the LTC ACO.
SavaSeniorCare will use LTC ACO’s structure to help in improving patient outcomes and reducing rehospitalizations, as the ACO structure will allow it to share in the improvements from a quality and cost perspective.
Takeaway: SavaSeniorCare is taking the industry lead in its efforts to refocus its strategy to survive and grow in today’s evolving market