Senior Living News Wire

A new report released by the  U.S. Department of Health and Human Services estimates that under the Affordable Care Act, average savings for those enrolled in traditional Medicare will amount to more than $3,500 over the next 10 years.  The report cites that savings with the new program maybe even higher for those who have high prescription drug costs.  The report, authored by the Office of the Assistant Secretary for Planning and Evaluation (ASPE), shows that the Affordable Care Act helps lower costs for those on Medicare by slowing the growth of cost-sharing in Medicare. 

"The Affordable Care Act makes Medicare stronger and reduces the burden of health care costs on some of our most vulnerable citizens," said Secretary Kathleen Sebelius.  "The law improves benefits for seniors and people with beneficiaries who rely on Medicare and ensures that Medicare will be there for current and future generations by extending the life of the Medicare Trust Fund.  These benefits and savings are only possible with the continued implementation of the Affordable Care Act."

According to the ASPE, the progress made to close the Part D coverage gap known as the "donut hole" will produce the greatest cost savings as next year people in the donut hole will receive 50 percent discounts on covered brand name Part D prescription drugs and have access to a number of recommended preventive services and annual wellness visits at no additional cost.  Total savings per beneficiary enrolled in traditional Medicare are estimated to be $86 in 2011, rising to $649 in 2020.   For a beneficiary with spending in the donut hole, estimated savings increase from $553 in 2011 to $2,217 in 2020.

"The savings that seniors and people with disabilities on Medicare are seeing are due to critical improvements the Affordable Care Act makes to Medicare," said Assistant Secretary for Planning and Evaluation, Sherry Glied.  "Reducing waste, fraud and abuse, improving the quality of care beneficiaries receive, and making the program more efficient all contribute to lower cost increases across the system."

The see the full analysis:  Medicare Beneficiary Savings and the Affordable Care Act

Ventas (NYSE:VTR) announced its earnings for the third quarter 2010 last week that showed net income of $57.9 million, or $0.37 per diluted common share, compared with net income attributable to common stockholders for the quarter ended September 30, 2009 of $49.8 million.  Cash flow funds from operations (“FFO”) for the quarter ended September 30, 2010 were $115.4 million, or $0.73 per diluted common share, as compared to $103.4 million, or $0.66 per diluted common share, for the quarter ended September 30, 2009 and the company raised its earnings guidance for 2010 to $2.84 to $ 2.86 a share as the company begins to digest it acquisitions announced in October.

Ventas announced in October that it would acquire 118 private pay seniors housing communities managed by Atria Senior Living Group from funds affiliated with Lazard Real Estate Partners for a purchase price of $3.1 billion.   Additionally, it agreed in October to acquire Sunrise’s joint venture interests in 58 communities for a total purchase price of $41.5 million.

“Our third quarter results were outstanding, demonstrating strong operating cash flow and FFO growth,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. “And, with three significant transactions, we believe that Ventas is well positioned for another decade of excellence. Additionally, we continue to implement our strategy to build an enterprise that will deliver strong returns to stakeholders through a high-quality, diverse and productive portfolio of healthcare and seniors housing assets.”

Ventas 8-K Q3 2010

Senior Living Investment Brokerage Announces $10.6 million sale in Mississippi

Senior Living Investment Brokerage, Inc. recently announced the sale of a 100 unit Seniors Housing Community located in Brandon, a suburb of Jackson, Mississippi for 10.6 million, or approximately $106,000 per unit.  The 85,000 square foot, two story building consists of 75 Assisted Living units and 25 Memory Care units.  The facility, constructed in 1999, is located on 5.4 acres and had an occupancy level of 98% at the time of the sale.

“This was the Seller’s sole senior housing asset, and the experienced new ownership group hopes to resolve a number of operational inefficiencies and further grow the financial returns of this asset,” stated Ross Sanders of Senior Living Investment Brokerage, Inc.     

CLW Health Care Announces Sale of Summerfield in Bradenton, Florida

CLW Health Care Services Group is pleased to have represented Summerfield Retirement Residence, LTD in the sale of Summerfield located in Bradenton, Florida.  This 120-unit Assisted Living/Memory Care community was sold for $9,500,000 or $79,167 per unit.  Built in 1988, the single story building is comprised of over 76,000 square feet on 7.7 acres and had an occupancy of 78% at closing.  TJM Properties, Inc., based in Clearwater, Florida was the purchaser.

The Ensign Group Acquires Colorado Assisted and Independent Living Facility

The Ensign Group, Inc. (Nasdaq: ENSG) announced that it acquired Canterbury Gardens Independent & Assisted Living Community, a 235-bed assisted and independent living facility in Aurora, Colorado effective November 1, 2010.  The facility had an occupancy rate of 85% at acquisition and is the company’s latest move into Colorado.  Ensign first entered Colorado in early 2009, acquiring three skilled nursing facilities and one assisted living facility in the Denver metropolitan area.

"This strategic acquisition further solidifies Ensign’s operating synergies in a key operating market," said Christopher Christensen, Ensign’s President and Chief Executive Officer.