December 2015 - January 2016
In this edition ofThe Capital Issue, our feature explores how long-term acute care hospitals are different than skilled nursing facilities while identifying what financing options are available for them. Continuing with the hospital sector, we detail the emerging trend of telemedicine and how it can deliver a boost to profitability. Separately, our senior living article examines the supply of seniors housing stock in relation to the emerging demand while our housing article describes the new USDA Loan Modification program. Finally, we bid farewell to the Fiduciary Focus as we announce the acquisition of the Investment Advisory Group by Hartland and Co.
As we wrap up another great year and head into the holiday season, all of us at Lancaster Pollard would like to wish you the very best for 2016.
Nick Gesue, CEO
The Capital Issue: October-November 2015
Although long-term acute care hospitals (LTACHs) have been around for some time, they have historically been lost in the shuffle by financiers. While many may compare them to a traditional skilled nursing facility (SNF), there are several key differences which make it more difficult for LTACHs to obtain long-term financing. This begs the question; are there any consistent financing options for LTACHs similar to those in the skilled nursing sector? To determine the answer, we must first understand what LTACHs are and the factors which affect their financial health.
As hospital leadership knows, there is no hard and fast formula for providing the best possible health care to every patient in every situation. However, with the recent onset of telemedicine, rural providers now have a dynamic new tool at their disposal that has the potential to revolutionize access to care while improving hospital efficiency and profitability.
The seniors housing industry is at an inflection point. This is not simply because of the aging baby boomers, rather, because this generation has drastically different financial situations and living expectations as compared to their parents. Diminished finances, a lack of caregivers, and rising costs converge to create an unprecedented need for seniors housing at a variety of price points. As such, traditional seniors housing supply will be required to adapt to meet the needs of the new generation of seniors in the coming decade.
Following the example of the U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA), the United States Department of Agriculture (USDA) is now offering note modifications—a low-cost alternative for housing owners to reduce annual debt service and thereby increase the overall financial performance of the property.
The Investment Advisory Group (IAG) of Lancaster Pollard is excited to announce that it has been acquired by Hartland & Co., effective December 1, 2015. Hartland is a prominent independent institutional and wealth advisory firm. Founded in 1989, Hartland advises institutions and private clients on more than $15 billion of assets.
The Fiduciary Focus