Quality matters, and keeping track of data and providing good outcomes in skilled nursing facilities is crucial, especially as failure to do so could seriously impact a facility’s bottom line, said a panel of experts at the National Investment Center for the Seniors Housing & Care (NIC) Skilled Nursing Symposium in Boca Raton, Fla….
Lenders’ Perspective on Clinical Outcomes
“Lenders aren’t looking to take on any risk. They want to avoid risk, and don’t feel that [loan] covenants are going to make up for the risk associated with an operator who’s having problems,” said Len Lucas, a senior director at Love Funding.
Poorly performing facilities often land on the so-called “Special Focus List,” and it’s very difficult to get financing for a facility on that list, Lucas continued. And even if it’s in a portfolio where the Special Focus Facility isn’t the focus, its presence on that list is going to have an impact on the other properties. Smaller operators are hurt by this more than the bigger ones, he said, because they don’t have as many properties to spread the risk on.
The above includes excerpts from an article written by Alyssa Gerace via Senior Housing News.