Senior living providers have lost more than $15.4 billion due to the pandemic, according to Argentum. Providers in California have lost a total of more than $1.9 billion, providers in Texas have lost more than $1.4 billion, and those in Florida have lost more than $1 billion. The three are the only states where industry losses due to the pandemic exceed $1 billion. Some recent activities include:
Genesis Healthcare announced that it will delist its shares from the New York Stock Exchange and receive an investment that could give a New York private-equity firm control of the Kennett Square company.
ReGen Healthcare LLC, a new private-equity-backed firm, has agreed to invest $50 million in Genesis, with the possibility of investing $25 million more by April 15. If both deals are completed, ReGen would control 43% of Genesis’s shares. The investment by ReGen is needed to ensure that Genesis doesn’t run out of cash for its day-to-day operations.
Erickson Living is changing its name to Erickson Senior Living and rolling out a new logo as part of a strategy that will see almost $3 billion in development and construction over the next five years.
The company currently oversees a $1 billion portfolio. The plans potentially will expand Erickson’s reach past the 11 states in which it currently operates and bring the total number of continuing care retirement communities it manages from the current 19 to 25 or more.
A new strategic plan will see Five Star Senior Living exiting the skilled nursing business completely, and the management of 108 communities transitioning to other operators, as the company shifts its focus to larger senior living communities.
As part of the repositioning plan, the management of 108 senior living communities, representing approximately 7,500 units, will be transitioned to other operators under amended management agreements with real estate investment trust Diversified Healthcare Trust.
Five Star will also close and reposition the skilled nursing units in all continuing care retirement communities that Five Star will continue to manage for DHC, which includes approximately 1,500 living units.
Oakmont Senior Living, a Windsor, California-based provider with 31 communities throughout California and Nevada traditionally focused on high-end amenities and services,.
Oakmont recognized that the old way of selling luxury senior living wouldn’t cut it in the middle of a disruptive pandemic that had residents sheltering in their rooms. So, the company tried something new: making health care, safety and sanitization its primary value proposition to prospective residents and their families.
Takeaway: The Covid-19 pandemic has prompted a number of leading senior living providers to reevaluate their value proposition and develop new strategies for the post pandemic environment