Pharmacy in Long-Term Care News Roundup: May 2023

PharMerica, one of the largest pharmacy service providers in the United States confirmed that hackers accessed the personal data of almost six million patients. PharMerica operates more than 2,500 facilities across the U.S. and offers more than 3,100 pharmacy and healthcare programs, including more than 180 long-term care pharmacies. An internal investigation revealed that an “unknown third party” accessed its systems days earlier and stole the personal information of 5.8 million current and deceased individuals, including 35,000 patients based in Maine.

The FDA announced the supplemental approval of Rexulti (brexpiprazole) oral tablets for the treatment of agitation associated with dementia due to Alzheimer’s disease. This is the first FDA-approved treatment option for this indication. The effectiveness of Rexulti for the treatment of agitation associated with dementia due to Alzheimer’s disease was determined through two 12-week, randomized, double-blind, placebo-controlled, fixed-dose studies.

The Ensign Group, Inc. announced operating results for the first quarter of 2023. Consolidated GAAP revenues and adjusted revenues for the quarter were $886.8 million, an increase of 24.3% over the prior year quarter. Total skilled services revenue for the quarter was $850.9 million, an increase of 23.9% over the prior year quarter and total skilled services⁽²⁾ segment income increased to $113.3 million, or 15.4% compared to the prior year quarter.

Brookdale Senior Living Inc. announced that it has entered into revised agreements under each of its three triple-net leases with Welltower Inc. to eliminate a unique nancial covenant, provide up to $17 million of additional lessor-funded capital investments, and extend a positive-covering lease.

Acquisition activity included:

• The Ensign Group, Inc. announced today that it acquired the operations of Hampden Hills Post Acute, a 218-bed skilled nursing facility located in Aurora, Colorado, and Mapleton Post Acute, an 84-bed skilled nursing facility located in Lakewood, Colorado. These acquisitions were effective March 1, 2023and will be subject to long-term, triple net leases.
• CareTrust REIT, Inc. announced that it has acquired a 136-unit, two-facility memory care portfolio located in the greater Chicago metropolitan area. The facilities will be operated by affiliates of Chapters Living, LLC, a new operator relationship for CareTrust. Chapters took over operations at the facilities from the outgoing operator on May 1, 2023 pursuant to a 15-year NNN master lease agreement. The agreement includes two, 5-year extension options as well as annual CPI-based rent escalators.
• KIRCO, a nationally recognized full-service corporate real estate and investment company, announced the acquisition of a Senior Living community, Brookmeadow at Blue Hills, located in the Boston, MA metropolitan area. This 91-unit assisted living and memory care facility was built in 2009 and presented a compelling opportunity for KIRCO to acquire an existing senior living community approximately 45% below replacement cost in a high income, underserved market.
• The Pennant Group, Inc., the parent company of the Pennant group of affiliated home health, hospice, home care and senior living companies, acquired the assets of Benefit Home Healthcare and Benefit By Your Side, which provides skilled home health, private duty, and community health services in Colorado Springs, Colorado.

Comprehensive, business intelligence on the long-term care market is available in AMI’s Pharmacy in Long-Term Care 2023-2024 Report