Skilled Nursing Lessor Services

REIT’s, REIT-like entities and investors who acquire skilled nursing facilities and other long term care and senior living investments (subject to a lease with an operator, or Opco), are increasingly recognizing the need to protect their investment through ongoing due diligence.

As Medicaid systems transition into Managed Care Organizations, in combination with increasing Medicare/DOJ audits and settlements, there will be intensified operational volatility throughout the industry similar to what transpired in the late 1990’s and early millennium when the skilled care industry went through a transition. Many operators struggled during this time, while in the near term other operators benefited from the changing reimbursement methodology.

While REIT’s and investors on the Propco/lessor side need to be diligent when selecting their operator(s), there is the growing need to protect their investment with monitoring and ongoing due diligence on those operators that includes the following:

• Regulatory compliance, including State surveys
• Analysis of cost reporting and reimbursement, including rehabilitation and billing practices
• Operational assessments
• Market assessments
• CAPEX and building improvements in general, as well as to suit markets

When lessors, investors and Propco entities closely monitor the industry and their operators, their investment is greatly protected and they are positioned to embrace the changing regulatory environment and have the opportunity to achieve operator and management diversity.

Ask us for additional information on how our team can help optimize your skilled nursing lessor investments.