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What is Keeping You Up at Night?

There are a lot of issues swirling around not-for-profit senior housing and CCRCs. As a leader in your organization, many of those issues could be making you lose sleep at night:

  • Impact of Mergers on the CCRC space: The number of CCRC mergers have increased significantly over the last several years. Is this something you should consider? What if one of my competitors does a merger with a major industry player?
  • Increased concerns over refunds: The increased use of the high percentage refund contracts have resulted in increased concerns over a CCRC’s ability to meet refund obligations within stated and/or regulatory requirements. Several states have considered or are planning to consider requiring new refund reserves in addition to debt service and operating reserves. If enacted, how will this impact our current bond covenants? How will it impact our future access to capital through the bond market?
  • How will the increase in for-profit competitors impact us? The majority of new entrants in the independent living/assisted living/memory care market the last few years has been the for-profit rental model. Some are from national providers like Brookdale, Greenbrier, and Holiday, and others are single locally-owned properties. What competitive advantages do they have over our CCRC model? How do we overcome their advantages? What competitive advantages do we have over the for-profit model? How do we exploit those advantages?
  • How do we finance the rapidly increasing technological demands of the senior housing market? Technological changes and improvements are happening at a rapidly increasing pace. We need to keep up with these changes in order to be competitive, to plug into the full post-acute care community, and to control our costs. How do the capital markets value these required technological changes and how does the financing of these changes work?

Do we need to talk? Hamlin Capital Advisors focuses on the not-for-profit CCRC provider group and are very sensitive to the capital and financing needs of this group in this time of constant change.  We will be at Kiosk 30 for the PEAK Conference in Washington DC March 14th.  Please stop by, we have a lot to talk about.