The Capital Issue

February-March 2017 


Uncertainty is a word that’s often overused—especially when it comes to prognostications about an industry’s future. Nonetheless, the concept of uncertainty is simply unavoidable in a time when a 40-character tweet can change the world. So, if uncertainty is the new normal, and not really knowing where the markets are headed is a given, then what is the use of in-depth forecasts? We believe the short answer is—information. In times of uncertainty, being as informed as possible is more important than ever. As such, the articles in the February-March edition of The Capital Issue aim to provide you with useful market data, updates and insights as 2017 unfolds.

In our feature, we take a look at recent seniors housing and care market data to shed light on the past 12 months and provide a big picture analysis as 2017 begins. For our hospital article, we detail a new revenue procedure change that might benefit facilities financed with tax-exempt bonds. Next, we present the third installment of our annual Seniors Housing and Care Survey, the results of which indicate several continuing trends as well as a couple surprises. Separately, our affordable housing article presents a 2017 forecast and legislative update. Finally, our After the Financing piece profiles John Knox Village East, which recently expanded its campus with a new rehabilitation wing using the USDA Community Facilities program.

If you have any questions or comments, please don’t hesitate to reach out to the authors as well as our bankers. And here’s to a great 2017!



Nick Gesue, CEO

2017 Seniors Housing and Care Market Outlook

2017 Seniors Housing and Care Market Outlook

The past 12 months have been quite eventful for the health care market, especially the seniors housing and care sector. There have been massive deals, real estate investment trust (REIT) divestitures of skilled nursing facilities (SNFs), concerns of overbuilding and changes in payor mix. While there are a number of uncertainties regarding the health care market and 2017, one thing is certain—changes are coming. We take a look at recent market data to shed light on the past 12 months, identify trends, and provide a big picture analysis of what the industry looks like as 2017 begins.

New Revenue Procedure Is Here To Stay

New Revenue Procedure Is Here To Stay

Out with the old and in with the new? A recent revenue procedure change is catching the attention of health care providers with facilities financed through tax-exempt bonds. The good news is, the changes allow for greater flexibility and revised safe harbor guidelines. 

2017 Seniors Housing and Care Survey

2017 Seniors Housing and Care Survey

In December of 2016, Lancaster Pollard sent an online survey to approximately 4,000 leaders at seniors housing and care facilities throughout the U.S. Over the course of two weeks, 273 respondents completed the online survey. The survey has a 95% confidence level and a confidence interval of 5.38, meaning that the differences in responses of 5 percentage points or more are statistically significant.

2017 Housing Outlook: In Uncertain Times, Advocacy is Key

2017 Housing Outlook: In Uncertain Times, Advocacy is Key

Talk about uncertainty. Over the years, those in the affordable housing industry have dealt with their fair share of uncertainty—in the form of budget shortfalls, continuing resolutions, sequestration and more. As 2017 begins to unfold, however, the aura of uncertainty is perhaps stronger than ever as the prospect of tax reform, drastic budget cuts, infrastructure spending and a retired pediatric surgeon taking over the U.S. Department of Housing and Urban Development (HUD) all loom on the horizon. Fortunately, the affordable housing industry has a lot of friends and advocates in Washington and across the nation. In 2017, it’s going to need them all to step up in a big way.

John Knox Village East: Easy Living Across the Continuum

John Knox Village East: Easy Living Across the Continuum

Located in Higginsville, Missouri, John Knox Village East is comprised of a beautiful and tranquil 40-acre campus “where neighbors are truly neighbors.” At John Knox Village East, staff provides residents with a comfortable and hassle-free life that has all the conveniences a person could ever need coupled with the unmistakable feel of a friendly, small town.

The Capital Issue: August-September 2016

Senior Living
After The Financing