I think both Five Star and Sunrise are raising their prices and cutting personal...
CEO Mackey boasts that average monthly rent now exceeds $4,400
By Rich Azar Posted May 13, 2011
Five Star Quality Care, in a recent boast to potential investors, has smacked residents of its assisted- and independent-living facilities with an average 2.7-percent rate hike since October 2010.
Chief Executive Officer Bruce Mackey bragged at the UBS Global Healthcare Conference, held February 7 in New York City, that the average monthly rent now exceeds $4,400 — and will be pushed higher whenever and wherever possible.
The rate hikes, coupled with “maintaining very tight price controls” on essentials such as labor and food costs, have kept the company profitable despite falling occupancy, Mackey said.
“We’ve shown that we can make it through a prolonged economic downturn,” he said. “Over the past three years our occupancy has decreased by almost 600 basis points (6 percent), but we’ve still been able to generate a positive cash flow.”