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Brookdale Senior Living Inc. Message Board

msears99 55 posts  |  Last Activity: Aug 26, 2014 1:27 PM Member since: Mar 20, 2011
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  • Economy rebounding...Yellan talking possible rate hike in 2015... buffet buying Tim Hortons ith Bk....

    I don't see FVE staying this low much longer.....It defies any type of common sence

  • These places are lined up 24 7.... It's really un believable .....This is why buffets at the table.

  • Reply to

    Interesting volume spike today...

    by buyacramer Aug 21, 2014 8:54 PM
    msears99 msears99 Aug 21, 2014 9:03 PM Flag

    Like said...bigger volume today...would love to see a new 13 d filing with the name Corvex attach to it... they lightened up hugely on commonwealth over the last two weeks... have millions. To deploy on a new front.. Who hates Portney with a passion.......Sharholders of FVE will endorse just about anyone who will attempt to unlock this pig....with a easy majority.

  • Reply to

    Our 30 communities we own are worth a bundle

    by msears99 Aug 20, 2014 9:38 PM
    msears99 msears99 Aug 21, 2014 7:42 PM Flag

    it think Ventus knows Portney would lock up a friendly deal with SNH on any sign of True hostility.. our largest shareholders could begin to rock the boat or a smaller hedge fund could accumulate a position and cause some action from McKay. Corvex has reduced the holding of Commonwealth now to 2.5% so the have a lot of free cash to deploy on another action against Portney should they desire...Rhey did well from $19 to $27 pn CWH.... they obviously know about FVE...and any discloser filing would send FVE through the roof...That may come sooner than later.

  • Reply to

    Our 30 communities we own are worth a bundle

    by msears99 Aug 20, 2014 9:38 PM
    msears99 msears99 Aug 21, 2014 12:34 PM Flag

    Shareholders know exactly what our assets are worth...Portney and McKay.. Will be tarred and feather should the attempt some type of shell game on shareholders.....

    let's face t.....on a startegic roll up of the company $16 is not impossible.....a complete steal would be $8 .. With law suites up the wazoo.... piiecing a small amount to SNH could also garner lawsuits...We might very well have some type of deal evaluating from outside happening right now....

  • Reply to

    Our 30 communities we own are worth a bundle

    by msears99 Aug 20, 2014 9:38 PM
    msears99 msears99 Aug 20, 2014 9:45 PM Flag

    I think its time we composed a letter of intent to Five stars largest institutional shareholders...Starting with Vanguard..

    it's time shareholders moved forward and proactive on McKay

  • Ventas Acquires 29 Senior Living Communities from Holiday

    To facilitate the expansion of its international footprint and leverage on the growing senior citizen population, Ventas Inc. (VTR) completed the acquisition of 29 Canadian senior living communities from Holiday Retirement.

    Positioned in seven Canadian provinces and predominantly in Ontario and Alberta, these private-pay properties enjoy 90% occupancy. The markets have a high concentration of senior population with elevated median household income, thus deeming the properties suitably positioned for their demand.

    The all-cash deal was previously announced in Jun 2014. During the second-quarter earnings release, the company confirmed the value of the transaction at $957 million Canadian dollars (approximately $897 million). Management of these communities has been assumed by Atria Senior Living, Inc.

  • Reply to

    After Hours Deal. Genesis and Skilled...SKH Merger

    by msears99 Aug 18, 2014 4:57 PM
    msears99 msears99 Aug 18, 2014 8:08 PM Flag

    Up 48% on 98k vol...... this will look small as compared to FVE....SNH will have little choice but to scoop Back up FVE very soon.

    the new Genesis company with SKH looks very promising..promoting over 5 billion in combined REV

  • msears99 msears99 Aug 18, 2014 5:26 PM Flag

    You can vote you proxy when you get it against McKay and its auditors..... it only makes sence to adjourn until year end results are filed.... Once again..o big deal...lok at SKH after hours....FVE has a much bigger premium set In front of her.

  • SKH way up after Hours.....

    FVE is now is in the cross hairs.

  • Reply to

    We should trade at 2x book like NCT

    by msears99 Aug 15, 2014 11:14 PM
    msears99 msears99 Aug 16, 2014 10:29 PM Flag

    I'm not worried about filings deadlines bla,bla,bla ...Seniors don't pick up and move out generally...unless its feet first to speak....FVe can turn between 10 and 13.2 million ebitda day in day out per q.......I'm sure there will be a Multipul Q release just like last time....SNH showed good results last Q..and so did most in the sector....

  • Newcastle Announces Second Quarter 2014 Results


    Newcastle Investment Corp. (NYSE:NCT; “Newcastle”, the “Company”) today reported the following information for the quarter ended June 30, 2014.


    GAAP Income of $31 million, or $0.09 per basic share
    Core Earnings of $30 million, or $0.09 per basic share

    Board of Directors approved a plan to spin the senior housing business
    Acquired $214 million of senior housing assets, investing $199 million of equity
    Generated $174 million return of capital in real estate debt portfolio
    Sold $345 million of assets, resulting in $36 million net gain on sale
    Board of Directors approved a 3-for-1 reverse common stock split

    2Q 2014   1Q 2014
    Summary Operating Results:
    GAAP Income $31 million* $4 million*
    GAAP Income per Basic Share $0.09 $0.01
    Non-GAAP Results:
    Core Earnings** $30 million $34 million
    Core Earnings per Basic Share** $0.09 $0.10
    GAAP Book Value: $2.08 $2.12
    * 2Q 2014 GAAP Income includes net gain on sale of $36 million, or $0.10 per basic share, and depreciation and amortization of $31 million, or $0.09 per basic share. Net gain on sale of $36 million includes $41 million of gain on sale less $3 million of unamortized debt discount and $2 million of transaction expense. 1Q 2014 GAAP Income includes gain on sale of $2 million, or $0.01 per basic share, and total depreciation and amortization of $34 million, or $0.10 per basic share, including $4 million, or $0.01 per share from New Media, which is recorded in discontinued operations.
    **For a reconciliation of GAAP Income to Core Earnings, please refer to the Reconciliation of Core Earnings below.

    Highlights for the quarter ended June 30, 2014

    Senior Housing – On June 16, Newcastle announced that its Board approved a plan to spin off its senior housing business. Newcastle intends to effect the spin-off by distributing shares of its subsidiary, New Senior Investment Group Inc. (“New Senior”, NYSE: SNR) to the holders of Newcastle’s common stock. New Senior will be a publicly traded real estate investment trust with a diversified portfolio of senior housing properties. As of June 30, New Senior owned 95 senior housing properties, totaling $1.8 billion of assets, throughout the United States.
    In the second quarter, Newcastle acquired 9 properties for $214 million, investing $199 million of equity:

    Triple Net Lease Transaction – On June 30, Newcastle acquired 6 rental continuing care retirement communities (“CCRCs”) for a total purchase price, including transaction costs, of approximately $190 million. The purchase price was funded with unrestricted cash. Concurrently with the acquisition, the Company entered into a triple net master lease agreement with Lifecare Companies LLC. The lease has an initial term of 15 years with two 5-year renewal options. The unlevered initial cash lease yield is 7.6%, with 3.75% increases in years 2 to 4 and 2.50% in years 5 to 15.
    Managed Properties – On May 27, Newcastle acquired 3 senior housing properties for a total purchase price of approximately $24 million. Newcastle funded the transaction with $15 million of debt and $9 million of equity. The Company expects to generate an approximate 15% initial return on equity and over 20% upon stabilization, although actual results may differ materially. This portfolio is managed by Blue Harbor, which is an affiliate of Newcastle’s manager and of Fortress Investment Group LLC. Including this portfolio, Blue Harbor will manage a total of 17 properties for the Company.
    Newcastle is also in contract to acquire 8 properties for a total purchase price of $130 million and has an active acquisition pipeline of over $1 billion. There can be no assurance that the Company will complete investments under contract, which are subject to the completion of diligence and other closing conditions, or any other investments in the pipeline.

    CDOs & Other – In the quarter, Newcastle realized $174 million return of capital from asset sales, pay downs and financings. The Company sold $345 million of loans and securities at an average price of 102.5% of par, generating $137 million of principal recovery and a net gain on sale of $36 million*. It also received $47 million of asset pay downs, resulting in $11 million of principal recovery, and raised $26 million from the financing of CDO VIII direct holdings owned on balance sheet.
    Asset sales in the quarter:

    Manufactured Housing Loans – On May 12, Newcastle sold $222 million face amount of loans at 104% of par, or $231 million of proceeds. The sale resulted in $85 million of principal recovery to Newcastle and generated a net gain on sale of $20 million.
    Debt Securities – In the quarter, Newcastle sold $123 million face amount of debt securities held in CDO VIII and on balance sheet at 99.8%. The sale resulted in $52 million of principal recovery to Newcastle and generated a gain on sale of $16 million.
    * Net gain on sale includes $41 million of gain on sale less $3 million of unamortized debt discount and $2 million of transaction expense.

    Dividend – On June 13, Newcastle declared a second quarter dividend of $0.10 per common share.

    The Company also announced today that its Board of Directors has approved a 3-for-1 reverse stock split of its common stock. The Company expects the reverse stock split will be effective after the close of trading on Monday, August 18, 2014, and that shares of the Company’s common stock will begin trading on a split-adjusted basis on Tuesday, August 19, 2014.

    As a result of the reverse stock split, every three shares of the Company's common stock will be converted into one share of common stock, reducing the number of issued and outstanding shares of the Company’s common stock from approximately 352 million to approximately 117 million. The Company’s common stock will continue to trade on the New York Stock Exchange under the symbol “NCT.”

    No fractional shares will be issued in connection with the reverse stock split. Each stockholder who would otherwise be entitled to receive a fractional share of the Company’s common stock will be entitled to receive a cash payment in lieu of a fractional share.

    The reverse stock split is not subject to stockholder approval and will not change the authorized number of shares of common stock or preferred stock of the Company or the par value of the Company’s common stock or preferred stock.


    For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Relations section of Newcastle’s website, For consolidated investment portfolio information, please refer to the Company’s Quarterly Report on Form 10-Q, which will be available on the Company’s website,


    Newcastle’s management will host a conference call on Thursday, August 7, 2014 at 10:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of Newcastle’s website,

    All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-888-243-2046 (from within the U.S.) or 1-706-679-1533 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Newcastle Second Quarter 2014 Earnings Call.”

    A simultaneous webcast of the conference call will be available to the public on a listen-only basis at Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

    A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Thursday, August 21, 2014 by dialing 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.); please reference access code “74226768.”

    Investment Portfolio as of June 30, 2014
    ($ in millions, except where otherwise noted)

    Percentage Weighted
    of Total Average
    Outstanding Amortized Amortized Carrying Number of Life (years)
    Face Amount Cost Basis (1) Cost Basis Value Investments Credit (2) (3)
    Debt Investment

    Commercial Assets
    CMBS $ 244 $ 164 6.3 % $ 207 40 B+ 2.1
    Mezzanine Loans 157 125 4.8 % 125 8 86% 1.3
    B-Notes 70 66 2.6 % 66 2 84% 1.6
    Whole Loans 1 1

    % 1 1 2% 0.5
    CDO Securities (4) 17 6 0.2 % 13 2 B 8.7
    Other Investments (5) 26   26   1.0 % 26   1


    Total Commercial Assets 515   388   14.9 % 438   2.0
    Residential Assets
    Residential Loans 43 32 1.2 % 32 165 709 5.7
    Non-Agency RMBS 91 39 1.6 % 61 33 CCC+ 4.3
    Real Estate ABS 8  

      0.0 %

      1 C 0.0
    Total Residential Assets 142   71   2.8 % 93   4.5
    Corporate Assets
    REIT Debt 29 29 1.1 % 31 5 BB+ 1.1
    Corporate Bank Loans 165   98   3.8 % 98   5 C 1.9
    Total Corporate Assets 194   127   4.9 % 129   1.8
    Total Debt Investments 851 586 22.7 % 660 2.4
    Other Investments
    Senior Housing Investments (6) 1,730 1,651 63.8 % 1,651
    Golf Investment (6) 367   350   13.5 % 350  
    Total Portfolio/Weighted Average $ 2,948   $ 2,587   100.0 % $ 2,661  
    (1)   Net of impairment.
    (2) Credit represents the weighted average of minimum rating for rated assets, the loan-to-value ratio (based on the appraised value at the time of purchase or refinancing) for non-rated commercial assets, or the FICO score for non-rated residential assets. Ratings provided above were determined by third party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current.
    (3) Weighted average life is based on the timing of expected principal reduction on the asset.
    (4) Represents non-consolidated CDO securities, excluding nine securities with a zero value, which had an aggregate face amount of $116.1 million.
    (5) Represents an equity investment in a real estate owned property.
    (6) Face amount of senior housing and golf investment represents the gross carrying amount, including intangibles, and excludes accumulated depreciation and amortization.
    Unaudited Consolidated Statements of Income
    ($ in thousands, except per share data)

    Three Months Ended June 30, Six Months Ended June 30,
    2014   2013 2014   2013
    Interest income $ 29,893 $ 62,824 $ 76,345 $ 124,156
    Interest expense 33,905   21,998   69,760   44,708  
    Net interest income (expense) (4,012 ) 40,826   6,585   79,448  
    Valuation allowance (reversal) on loans 1,526 (709 ) 2,772 1,525
    Other-than-temporary impairment on securities


    Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)


    Total impairment (reversal) 1,526   3,201   2,772   5,974  
    Net interest income (expense) after impairment/reversal (5,538 ) 37,625 3,813 73,474
    Operating Revenues
    Rental income 54,594 11,721 107,484 23,195
    Care and ancillary income 5,666 2,292 11,127 4,318
    Golf course operations 51,131


    Sales of food and beverages - golf 19,923


    Other golf revenue 12,332  


    Total operating revenues 143,646   14,013   265,275   27,513  
    Other Income
    Gain on settlement of investments, net 40,403 5,066 42,735 5,063
    Gain (loss) on extinguishment of debt (3,410 )

    (3,410 ) 1,206
    Other income, net 4,692   3,024   18,166   7,591  
    Total other income 41,685   8,090   57,491   13,860  
    Loan and security servicing expense 408 1,021 1,265 2,055
    Property operating expenses 24,280 8,409 48,084 16,772
    Operating expenses - golf 65,178


    Cost of sales - golf 8,807


    General and administrative expense 9,633 9,938 18,845 14,151
    Management fee to affiliate 7,475 8,148 15,512 17,713
    Depreciation and amortization 31,031   4,070   61,390   8,149  
    Total expenses 146,812   31,586   283,375   58,840  
    Income from continuing operations before income tax 32,981 28,142 43,204 56,007
    Income tax expense 540  


    Income from continuing operations 32,441 28,142 42,369 56,007
    Income (loss) from discontinued operations, net of tax (46 ) 25,581   (5,351 ) 35,729  
    Net Income 32,395 53,723 37,018 91,736
    Preferred dividends (1,395 ) (1,395 ) (2,790 ) (2,790 )
    Net loss attributable to noncontrolling interests 29  


    Income Applicable to Common Stockholders $ 31,029   $ 52,328   $ 34,918   $ 88,946  
    Continued on next page.

    Unaudited Consolidated Statements of Income
    ($ in thousands, except per share data)

    Three Months Ended June 30, Six Months Ended June 30,
    2014   2013 2014   2013
    Income Per Share of Common Stock
    Basic $ 0.09   $ 0.20   $ 0.10   $ 0.36
    Diluted $ 0.09   $ 0.20   $ 0.10   $ 0.35
    Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests
    Basic $ 0.09   $ 0.10   $ 0.11   $ 0.22
    Diluted $ 0.09   $ 0.10   $ 0.11   $ 0.21
    Income (loss) from discontinued operations per share of common stock
    Basic $

      $ 0.10   $ (0.02 ) $ 0.14
    Diluted $

      $ 0.10   $ (0.02 ) $ 0.14
    Weighted Average Number of Shares of Common Stock Outstanding
    Basic 351,598,001   259,228,343   351,526,147   247,249,101
    Diluted 362,860,506   265,396,219   362,963,068   252,807,613
    Dividends Declared per Share of Common Stock $ 0.10   $ 0.17   $ 0.20   $ 0.39
    Consolidated Balance Sheet

    ($ in thousands)

    June 30, 2014


    December 31, 2013

    Real estate securities, available-for-sale $ 311,268 $ 984,263
    Real estate related and other loans, held-for-sale, net 289,112 437,530
    Residential mortgage loans, held-for-investment, net

    Residential mortgage loans, held-for-sale, net 32,083 2,185
    Subprime mortgage loans subject to call option 406,217 406,217
    Investments in senior housing real estate, net of accumulated depreciation 1,547,409 1,362,900
    Investments in other real estate, net of accumulated depreciation 263,500 265,495
    Intangibles, net of accumulated amortization 197,129 199,725
    Other investments 26,123 25,468
    Cash and cash equivalents 77,922 74,133
    Restricted cash 3,703 5,889
    Receivables and other assets 109,538 141,887
    Assets of discontinued operations

    Total Assets $ 3,264,004   $ 4,851,888
    Liabilities and Equity
    CDO bonds payable $ 263,581 $ 544,525
    Other bonds and notes payable 82,053 230,279
    Repurchase agreements 102,677 556,347
    Mortgage notes payable 1,104,182 1,076,828
    Credit facilities and obligations under capital leases, golf 156,578 152,498
    Financing of subprime mortgage loans subject to call option 406,217 406,217
    Junior subordinated notes payable 51,234 51,237
    Dividends payable 36,101 36,075
    Accounts payable, accrued expenses and other liabilities 269,778 276,491
    Liabilities of discontinued operations

    Total Liabilities $ 2,472,401   $ 3,625,764
    Preferred stock, $0.01 par value, 100,000,000 shares authorized, 1,347,321 shares of 9.75% Series B Cumulative Redeemable Preferred Stock, 496,000 shares of 8.05% Series C Cumulative Redeemable Preferred Stock, and 620,000 shares of 8.375% Series D Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, issued and outstanding as of June 30, 2014 and December 31, 2013 $ 61,583 $ 61,583
    Common stock, $0.01 par value, 1,000,000,000 shares authorized, 351,709,903 and 351,453,495 shares issued and outstanding, at June 30, 2014 and December 31, 2013, respectively 3,518 3,515
    Additional paid-in capital 2,971,223 2,970,786
    Accumulated deficit (2,313,799 ) (1,947,913
    Accumulated other comprehensive income 68,880   76,874
    Total Newcastle Stockholders' Equity 791,405 1,164,845
    Noncontrolling interests 198   61,279
    Total Equity $ 791,603   $ 1,226,124
    Total Liabilities and Equity $ 3,264,004   $ 4,851,888
    Reconciliation of Core Earnings
    ($ in thousands)

    2Q 2014     1Q 2014
    Income available for common stockholders $ 31,029 $ 3,889
    Add (Deduct):
    Impairment (reversal) 1,526 1,246
    Other (income) loss(A) (39,488 ) (15,847)
    Impairment (reversal), other (income) loss, depreciation and amortization and other adjustments from discontinued operations

    Depreciation and amortization(B) 32,405 32,039
    Acquisition and spin-off related expenses 4,484   6,602
    Core earnings $ 29,956   $ 33,721
    (A)   Net of $1.9 million of deal expenses relating to the sale of the manufactured housing portfolio which were recorded to general and administrative expense under GAAP during 2Q 2014.
    (B) Including accretion of membership deposit liability of $1.4 million in 2Q 2014 and $1.7 million in 1Q 2014.

    Newcastle has the following primary variables that impact its operating performance: (i) the current yield earned on its investments that are not included in non-recourse financing structures (i.e., unlevered investments, including investments in equity method investees and investments subject to recourse debt), (ii) the net yield it earns from its non-recourse financing structures, (iii) the interest expense and dividends incurred under its recourse debt and preferred stock, (iv) the net operating income on its real estate and golf investments, (v) its operating expenses and (vi) its realized and unrealized gains or losses, including any impairment, on its investments, derivatives and debt obligations. Core Earnings is a non-GAAP measure of the operating performance of Newcastle excluding the sixth variable listed above and adjusting the consumer loans portfolio accounting to a level yield methodology. It also excludes depreciation and amortization charges, including accretion of membership deposit liability, and acquisition and spin-off related expenses.

    Core Earnings is used by management to gauge the current performance of Newcastle without taking into account gains and losses, which, although they represent a part of our recurring operations, are subject to significant variability and are only a potential indicator of future economic performance. It is the judgment of management that depreciation and amortization charges are not indicative of operating performance and that acquisition and spin-off related expenses are not part of our core operations. Management believes that the exclusion from Core Earnings of the items specified above allows investors and analysts to readily identify the operating performance of the assets that form the core of our activity, assists in comparing the core operating results between periods, and enables investors to evaluate Newcastle’s current performance using the same measure that management uses to operate the business, which is among the factors considered when determining the amount of distributions to our shareholders.

    Core Earnings does not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of its liquidity and is not necessarily indicative of cash available to fund cash needs. The Company’s calculation of Core Earnings may be different from the calculation used by other companies and, therefore, comparability may be limited.


    The Company focuses on investing in, and actively managing, real estate related assets and primarily invests in: (1) Senior Housing Assets (2) Real Estate Debt and (3) Golf & Other Investments. The Company conducts its operations to qualify as a real estate investment trust ("REIT") for federal income tax purposes. The Company is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm.


    Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the expected lease yield and return on equity of investments in senior housing properties, and the expected completion of the reverse stock split. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. The Company can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

  • Nuuns you left us holding the bag......... And the bagg was cooked.

  • Reply to

    Healthcare sector is set to boom.

    by msears99 Aug 8, 2014 2:36 PM
    msears99 msears99 Aug 13, 2014 11:03 PM Flag

    AGM set for next Thursday AUG 21.......No sign of concellation so far.....Noriced HCN went shopping buying up a deal put o 2.3 billion.... someone will try to eat SNH.....just a matter of time... as much as we hate Portney.....SNH is a prime target that flowing cash out the wazoo...our ship is tied to her....we could easily see $18 if a hostile offer was ever to come forward.

  • Reply to

    Healthcare sector is set to boom.

    by msears99 Aug 8, 2014 2:36 PM
    msears99 msears99 Aug 11, 2014 1:27 PM Flag

    I can see why there is an aggressive expansion in the sector...Obama carre looks
    Ike its finally taking hold and Americans are endorsing it .I don't see a change comming anytime getting on board is the key now. Alot of consuladtion is taking place..just look at Gentiva..GTIV... all home health will Kindred and Private Equity bidding for it...

  • Post-Merger, Brookdale Sees Potential in Home Health, Entrance Fees

    As the now-largest senior living provider in the nation, Brookdale Senior Living Inc. (NYSE:BKD) is looking at future opportunities across its growing business. 

    With growing ancillary business units and record move-ins over the last three months, Brookdale saw positive performance during the second quarter of this year. But looking toward the future of the senior living giant, there is more growth ahead in several areas, its executives said this week.

  • In Ambitious Bid, Walmart Seeks Foothold in Primary Care Services

    Welcome to Walmart. The nurse will be right with you.

    Walmart, the nation’s largest retailer, has spent years trying to turn some of its millions of customers into patients, offering a simple menu of medical services that consumers can buy along with everything from a bag of chips to a lawn mower. Now, the store is making an aggressive push to become a one-stop shopping destination for medical care.

    The company has opened five primary care locations in South Carolina and Texas, and plans to open a sixth clinic in Palestine, Tex., on Friday and another six by the end of the year. The clinics, it says, can offer a broader range of services, like chronic disease management, than the 100 or so acute care clinics leased by hospital operators at Walmarts across the country. Unlike CVS or Walgreens, which also offer some similar services, or Costco, which offers eye care, Walmart is marketing itself as a primary medical provider.

    Like its competitors, Walmart is looking to grab a bigger share of the billions of health care dollars being spent in the United States and benefit from the changes that have resulted from the Affordable Care Act.

    With its vast rural footprint, Walmart is positioning its primary care clinics in areas where doctors are scarce, and where medical care, with or without insurance, can be prohibitively expensive. If they succeed, the company said, it is prepared to open even more.

    “If they’re rolling it out across the rural stores primarily, they’re actually filling an important gap in the health care ecosystem,” said Skip Snow, a health care analyst at Forrester Research.

    But while experts agree that increased access to health care is a good thing, others say patients with chronic conditions need complex care that retail giants cannot provide. Diseases like diabetes, for example, can result in complications that are not easy to manage.

    “There’s not a role for retail clinics to take care of chronic, ongoing problems like that,” said Dr. Robert L. Wergin, the president-elect of the American Academy of Family Physicians. “It can provide a service, maybe an entryway into a system.”

    While the company says that about 15 to 20 patients use the existing primary clinics every day, a large percentage of those patients do not have a primary doctor outside Walmart, according to Dr. David Severance, the corporate medical director at QuadMed, which is joining with Walmart to help staff and run the clinics.

    For patients with complex issues, Dr. Severance said, the goal was for Walmart to be a patient’s first stop and part of a continuum of care. “In that circumstance, it’s our desire to get those individuals established with a primary care provider, preferably a physician within the community,” he said.

    Last year, Walgreens announced it would begin offering some primary care services like disease monitoring at its 400 clinics across the country. But it does not market the facilities as primary care clinics, a spokesman, John Cohn, said, adding that the company “strongly” encourages patients to seek continuing care elsewhere.

    “Walgreens is still trying to be a little careful in how they talk about primary care,” said Tom Charland, the chief executive of Merchant Medicine, a health care research and consulting firm. “Walmart puts primary care out there front and center. In that sense, I think it will be more comprehensive because primary care is their stated intention.”

    According to its website, Walmart’s “expanded scope of coverage enables us to be your primary medical provider.”

    While the retailer has been pushing into health care for years, its early attempts stumbled. Dozens of acute care clinics have closed, largely because of management problems.

    The primary clinic model could offer some new advantages over the more basic clinics, often referred to as “retail clinics.” The limited list of minor illnesses that a retail clinic can treat — the flu, for instance — often peaks in the winter months, Mr. Charland said, and slows down significantly at other times of year.

    Walmart also says it will be better off working with just one partner, QuadMed, instead of multiple partners that each run a handful of clinics, which was the model used in its acute care clinics. With just one or two stores, it can be difficult to spot problems that may be more obvious with more locations, Mr. Charland said.

    Along with medical assistants, nurse practitioners, who generally receive less training than doctors but can prescribe most of the same medications, run the primary clinics.

    While each Walmart primary care clinic has a supervisory physician who oversees compliance and prescription orders at one or two locations, those doctors do not actually treat patients. The system is the same as for acute care clinics that treat minor skin infections or a sprained ankle, but it is more unusual for facilities that provide more complicated health services, said Dr. Steven J. Kravet, the president of Johns Hopkins Community Physicians.

    “I’m not saying there’s not a role for it. We just really have to find the right role,” Dr. Kravet said. “What you want is patients to get the right providers.”

    Disease management is big business. Most of the $1.7 billion that Americans spend annually goes to handling chronic illnesses, said Matt Nemer, a health care analyst at Wells Fargo.

    For Walmart, that could mean a more regular stream of patients that helps increase foot traffic.

    Walmart’s same-store sales, or sales at stores that have typically been open for more than 12 months, have been on the decline in recent months, and 10 percent of sales have evaporated at big retailers as more consumers shop online, Mr. Nemer said.

    The Walmart primary care clinics charge patients $40 a visit; employees at the company and their dependents who are covered under its own insurance pay $4 a visit. (Walmart says that more than half of its 1.1 million employees currently receive health care through the company.) While it accepts Medicare, it does not currently accept third-party insurance, although it is exploring the option, a spokeswoman, Danit Marquardt, said, adding that it is starting to enroll some of its stores in Medicaid.

    But the primary care clinics can help drive traffic to Walmart’s pharmacies, which do accept insurance, and could stand to benefit from the growing number of people now signing up for coverage under the Affordable Care Act.

    “To make it profitable, you need to make it have more than just a clinical encounter,” said Dr. Glenn Hammack, the founding president and chief executive of NuPhysicia, which closed the six clinics it briefly ran in Walmart stores. “You also need to sell them prescriptions, a bag of chips, maybe a magazine while they’re waiting.”

  • msears99 msears99 Aug 8, 2014 2:24 PM Flag

    my theory SNH will eventually own all assets of FVE..and the management side of FVE will be privatized...somewhere in the area of 50 million in itself.... Basicly our assets are giving us about 1/3 ofits true your comparison to CSU has indicated....Shareholders do control FVE and Eventually one of the large institional shareholder will quietly serve notice to McKay..Shaholders are willing to vote for change as soon as its presented to them.... And McKay and party know that already.

  • In July 2014, SNH entered into an agreement to acquire one senior living community with 52 private pay assisted living units located in Jackson, WI, for approximately $7.0 million, excluding closing costs. SNH intends to acquire this community using a taxable REIT subsidiary structure and it expects to enter into a long term management agreement with Five Star Quality Care, Inc. to manage this community.

  • Reply to

    Back to $6......

    by msears99 Jul 30, 2014 9:33 PM
    msears99 msears99 Aug 7, 2014 11:53 AM Flag

    Where almost there.....There no reason to touché this thing for the divy right now...much safer high yielding plays than PWE

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