Who’s best equipped to make a go of it in the senior housing/healthcare industry today?
Cambridge Realty Capital Companies Chairman Jeffrey A. Davis believes the industry will increasingly advantage the knowledgeable, technologically savvy operator who has the requisite business and managerial skills needed to cope with challenge and change.
An ability to anticipate and deal with uncertainty is helpful as well, especially in an election year, he believes.
“Operators today continue to work in an environment in which state revenues are increasing, only never as quickly as hoped for,” he noted.
“Medicaid is a huge component of any state’s budget and Medicare spending is a large component of the Federal budget. Realistically, in today’s political climate, what we have to look forward to are continued attempts to reduce the cost of government programs the industry relies on.”
Cambridge is an FHA-approved HUD lender and one of the nation’s leading senior housing/healthcare funding specialists. The company acquires properties through its Cambridge Investment and Finance Co. subsidiary.
“In an environment where the only certainty is uncertainty, it’s important for owners to stay highly liquid. Another important idea is continual investment in facility improvement, especially with borrowing costs as low as they are today.
“Realistically, skilled nursing homes continue to be the low cost provider in our healthcare system and, based on demographics alone, seem destined to survive and even thrive. But the outlook for the marginal operators is not inspiring,” he said, adding:
“Understanding the financial landscape is essential. And so is choosing an experienced capital partner with a level of experience not gained overnight.”