Senior Living News Wire

Assisted living residents have always used pharmacies, but with acuity levels rising across the industry, the need for better integration has reached its boiling point.

Des Moines, Iowa-based Life Care Services, an LCS Company that manages senior living communities, agrees that rising acuity levels in senior living makes managing residents’ medications even more important.

“It’s becoming more important to develop close partner relationships with our pharmacy vendors with the higher acuity levels and health care reform,” says Susan Altman, Director of Clinical Operations for Life Care Services.

The company serves nearly 28,000 residents in 29 states, and says more residents in assisted living are starting to need higher levels of care.

A study by the Center for Gerontology and Health Care Research found the aging population is becoming more complex, with acuity rates rising up to 2.5% annually. As a result, the role of assisted living operators is becoming more clinical.

“As communities start to take on more of the appearance of mini skilled nursing facilities they become more involved in the actual administration of medications,” says Alan Carey, managing director of Fairchild Consultants, Inc. “As an operator, you expose yourself to the regulations that surround that.”

The different regulations a provider might face depend on the state, but more acute residents means traditional hospital assisted living is moving toward a “hybrid” of hospitality and skilled nursing.

“[The providers will need to] wear both caps and figure out what to do,” Carey says.

As a result, communities are turning to institutional pharmacy providers such as Omnicare and PharMerica to help manage residents’ medications and an increasing number of nursing staff. Using an institutional pharmacy, providers can receive residents’ medications each day in prepackaged containers, which cuts down on errors.

The industry as a whole has faced challenges at adapting.

Data compiled in 2012 by the Assisted Living Federation of America found that errors in medication administration was the top deficiency named by states when surveying assisted living communities.

Nearly nine in 10 (86%) of states reported deficiencies in medication administration in 2012, up from 83% the prior year.

Deficiencies can range anywhere from not providing medication as directed; to having an out-of-date physician order; and documenting medication administration incorrectly.

Omnicare told SHN it works with assisted living communities to ensure their staff is complying with state laws, but providers often experience a high rate of employee turnover, which can be a challenge in ensuring all staff is adequately trained.

“We collectively play an important role to make sure they don’t have any issues,” said Patrick Lee, vice president of investor relations at Omnicare.

As a result of higher acuity levels, Omnicare has started to roll out a new concierge service and is revamping its assisted living suite of products.

Part of the role of pharmacy providers play is to coordinate information between the necessary parties.

“Pharmacies coordinate with various doctors to make sure everybody knows what the other doctor is writing,” said Carey. “If someone is living in a community and managing their own doctor appointments and medications, there is no one coordinating and knowing exactly what someone is currently taking.”

Using technology, assisted living communities can keep a detailed log of patients’ medication history, which is a change for a lot of smaller operators, who still use paper tracking methods.

Providers who choose not to manage the rising acuity levels of residents appropriately could be in for hard times.

“If you don’t have any specialized process setup for residents, you’re setting yourself up for failure and putting that resident at risk,” said Lee.

While some assisted living providers have made the transition to electronic medical records, the industry in general is behind compared to hospitals, but it’s starting to catch up said Lee.

At the end of the day, it’s all about making sure all the necessary parties are communicating to take better care of the resident.

“Assisted living has become more ‘pseudo’ skilled nursing,” said Altman, and “medication management is paramount.”

Written by John Yedinak 

Omnicare (NYSE:OCR), an institutional pharmacy service provider based in Cincinnati, Ohio, has started to roll out a new Concierge program to meet the needs of assisted living residents.

“Our strongest offering has been toward skilled nursing, but [we’ve started] rolling out new services targeted at assisted living,” said Patrick Lee, vice president of investor relations at Omnicare during an interview with SHN.

“We serve independent living today, but we believe we can differentiate our offering further.”

While Omnicare has offered assisted living services in the past, the new Assisted Living Concierge is substantially different.

“[The concierge] is intended to bring the customer experience to a new level,” said Lee in an email to SHN.

Using its staff of more than 600 clinical pharmacists nationwide, the company says it’s best suited to help providers meet the needs of residents with higher acuity levels, something providers haven’t had to do as much of in the past.

“[Working with providers], we can provide additional tools to help residents and their responsible parties lower their costs of medications,” he said.

The first phase of the program rolled out in the Midwest earlier this year and while Lee wouldn’t divulge too much pending the nationwide release of the program, it’s based around offering a simplified service model that allows the resident, family, and operator to all be on the same page.

The new roll out includes several new technologies and clinical tools intended to improve the quality of resident care.

“Assisted living’s pharmacy needs have not been met for years, but we plan on changing that by getting it where it needs to be,” Lee said.

Omnicare plans to roll out its Concierge platform for assisted living communities nationwide in the second half of the year.

Written by John Yedinak

Happy New Year, senior housing professionals! It’s 2013, and we have a whole new round-up of people who have been making moves and shaking things up in the industry.

Did any of your new year’s resolutions include taking a new position or joining a different company? Look for senior housing jobs nationwide on SHN’s job board.

Employers: Take advantage of our job board to look for some of the best and brightest in the industry. Post a job on the SHN job board for less than $1 per day, and attract local and national candidates through our system that leverages these postings throughout the SimplyHired network. Post a job now.

Cantata Adult Life Services Names John Larson CEO

Chicago-based not-for-profit Cantata Adult Life Services promoted John Larson to Chief Executive Officer this month. Larson takes over for Dennis Sonnenberg, who will assume a new role as Foundation President. In Larson’s new role as head of Cantata, he will spearhead the company’s ongoing efforts to expand and initiate new business ventures and partnerships, including a consulting arm of the Cantata parent company that will offer consulting services to other adult life services organizations seeking to improve operational efficiencies and outcomes.

As Chief Operating/Financial Officer for Cantata, Larson lead the charge to form a new strategic vision for the organization, positioning Cantata Adult Life Services to become one of the premier providers of services to older adults and their families in the Chicago area.

Larson brings with him thirty years of experience in finance, operations, information systems and management. Larson’s career began in finance with Old Republic International Corporation. He currently serves as Treasurer of Trinity Risk Solutions, and is a past treasurer for Abbeyfield Senior Housing. Larson serves on several advisory committees, and was named an American Association of Homes and Services for the Aging (AAHSA) Leadership Fellow in 2009. Larson earned his Bachelor’s in Business Administration from University of Illinois at Chicago.

GlynnDevins Promotes Jeremy Johnson to VP of Creative

GlynnDevins Advertising & Marketing announces the promotion of Jeremy Johnson as vice president of creative for the marketing and advertising agency, which specializes in the field of senior living.

As vice president of creative, Johnson will be responsible for overseeing the creative department, including the conceptual development and execution of all creative materials.

Johnson has more than 15 years of creative experience and is a veteran of GlynnDevins, joining the team in August 2000. He is actively involved in the American Advertising Federation of Kansas City (AFFKC), having served as president of AAFKC Art+Copy Club and currently serving as a 2013 ADDY Show Chair.

Life Care Services Appoints Julie Bissonnette as Executive Director of Newcastle Place

Life Care Services, an LCS company, recently assumed management of Mequon senior living community Newcastle Place, and it has named Julie Bissonnette as executive director. Bissonnette will oversee all operations at the community recently purchased by LCS.

Bissonnette brings years of senior living management experience to Newcastle Place having worked at three Life Care Services communities prior to accepting the position. She has held roles of increasing responsibility, including the position of executive director at Peabody Retirement Community in North Manchester, Ind.

With Life Care Services now managing Newcastle Place, Bissonnette will guide the implementation of some of the company’s signature programs at the community including a customer service initiative and a resident wellness plan. She and her staff are also currently soliciting input from all Newcastle Place residents with a survey to gauge opinions on the operations and services such as dining, transportation and resident activities.

Bissonnette holds a bachelor’s degree in health care administration from the University of Wisconsin-Eau Claire, and she lives with her husband in Oak Creek.

The Barrington of Carmel Names Dana Shore Director of Sales and Marketing

The Barrington of Carmel senior living community has named Dana Shore director of sales and marketing. The announcement was made by Kristen McCaig, vice president of corporate sales and marketing for Senior Quality Lifestyles Corporation, which sponsors The Barrington.

Shore brings to The Barrington more than 20 years experience in sales and marketing as well as in management. Prior to joining The Barrington, Shore performed in many roles at Brookdale Senior Living, the nation’s largest provider of senior housing, in Indianapolis.  Her roles there included sales and marketing manager, national sales specialist and director of sales and marketing of the entry fee division.  

Omnicare Names Bob Dries SVP of Financial Operations, LTC Group

Omnicare, Inc. (NYSE: OCR) today announced Bob Dries has been appointed Senior Vice President Financial Operations, Long-Term Care Group.

Mr. Dries will have broad-based financial and operating responsibility for Omnicare’s Long-Term Care business. He will report directly to Nitin Sahney, Omnicare’s President and Chief Operating Officer.

Mr. Dries has been working at Omnicare in roles of increasing responsibility since 1996 and brings an extensive experience within pharmaceutical services into his new role.  Most recently, Mr. Dries served as Senior Vice President of the Operations Finance Group after having served as Vice President and Group Executive of the Operations Finance Group from 2005 to 2010. He previously served as Vice President of Internal Audit from 1999 to 2005 and Director of Internal Audit from 1996 to 1999.

Prior to working at Omnicare, Mr. Dries held various positions at KPMG Peat Marwick. Mr. Dries received a Bachelor of Science degree in Accounting, with a major in Finance, from the University of Kentucky. He is also a Certified Public Accountant.

Senior Living Management Names Jonathan Sperber as Executive Director of The Peninsula

Senior Living Management (SLM) is pleased to announce Jonathan Sperber has been named executive director for The Peninsula, an assisted living and memory care community located in southern Broward County. He is responsible for overseeing the day-to-day management team of The Peninsula and to assure the quality of care for residents.

Sperber’s experience in senior living management has included managerial positions with leading providers of independent, assisted living and memory care communities. Most recently he was associated with Atria Senior Living in Riverdale, N.Y., and served as an executive director leading the day-to-day operations, recruiting and training team members and successfully maintaining high customer satisfaction.

For five years, he was with Sunrise Senior Living and also held management positions at communities in New York City and Stamford, Conn. He was promoted to executive director having joined the company as a Reminiscence Coordinator. During his tenure with Sunrise, he was credited with restructuring and renovation an Alzheimer’s Dementia Care Department achieving 100% deficiency-free quality and maintaining 100% occupancy levels. The company honored him for his work in assisted living services.

Sperber earned a Bachelor of Science degree from Yeshiva University in N.Y., and a Master of Science degree in hospitality management from Fairleigh Dickinson University in Teaneck, N.J. He is a native South Floridian and is bilingual and fluent in Spanish.

Ross Dickmann Named Executive Director of The Terraces at Bonita Springs

SantaFe Senior Living has named Ross Dickmann as the executive director of new senior living community The Terraces at Bonita Springs, in Bonita Springs, Fla.  Dickmann is responsible for the start of operations and managing day-to-day operations of The Terraces, which is currently under construction and scheduled to open in the summer of 2013.

Dickmann has more than 15 years of leadership experience in senior living. He’s led successful openings and ongoing operations of communities in Washington, D.C.; Aventura, Fla; and most recently Querencia at Barton Creek, a retirement community located in Austin, Tex. Prior to his career in senior living, Dickmann spent 20 years in active service in the U.S. Coast Guard, achieving the rank of Master Chief before his retirement.

A well-known leader in senior living, Dickmann has received numerous awards and special recognition in his career for achievements, including resident satisfaction, fiscal management, highest sustained occupancy and excellence in hospitality.

The Terraces at San Joaquin Gardens Adds to Culinary Team

The Terraces at San Joaquin Gardens has added two highly experienced professionals to The Terraces’ culinary team, and is in the process of building three new dining venues for residents, which will open in the summer of 2013.

New Executive Chef Todd VanDerPoel is a master chocolatier and a self-taught ice sculptor, who looks forward to wowing residents with his stunning ice sculptures and chocolate designs. With more than 20 years of experience, the award-winning chef loves to cook with a modern flair, and focuses on local, fresh and seasonal foods. 

VanDerPoel has been cooking since the age of 16. He received culinary certification from the American Culinary Federation from Fresno City College and attended the Culinary Institute of America in Napa. Previously, he was part of the culinary teams at the San Joaquin Country Club and Sunnyside Country Club in Fresno.

The community also named Jason Quigley as director of dining services. Before joining The Terraces at San Joaquin Gardens, Quigley worked as general manager for Marriott Hotels in Miami, and has held many positions in the hospitality industry.

In May, The Terraces at San Joaquin Gardens plans to open three new dining areas, including fine and casual dining. Quigley and VanDerPoel will be responsible for designing menus for more than 300 residents and creating more than 1,200 meals a day.

Friends House Hires Travis Staples as Executive Director

Friends House, a not-for-profit continuing care retirement community in Santa Rosa, California, and Pacific Retirement Services, Inc. (PRS), a not-for-profit senior housing and care provider that manages Friends House through its California affiliate, Retirement Services, LLC, has appointed Travis N. Staples, NHA, as Executive Director of Friends House, effective immediately. 

Staples is a licensed Nursing Home Administrator in Oregon and California. He earned his Bachelor of Science degree in Business Administration and a Certificate of Applied Finance and Economics, both from Southern Oregon University. During college, he was awarded an internship at PRS, which owns and manages several CCRCs and senior affordable housing centers in five states.

He gained a breadth of experience while serving in various capacities at the PRS headquarters in Medford, Ore. Later, he was hired by PRS to be a Management Analyst, working concurrently as the interim Executive Director of Friends House.

National Lutheran Community CCRC Appoints New Executive Director

The Village at Rockville—A National Lutheran Community (TVAR) in Rockville, Md., announced Jana Broughton as its new Executive Director. Following an executive search, Broughton was selected to take the helm at TVAR effective Jan. 2, 2013.

A native of Michigan, Broughton relocated to Northern Virginia with her husband in the spring of 2012. Most recently she was the Executive Director for Fellowship Square Foundation, a provider of affordable housing for the elderly and disabled in the Washington, D.C.-area.

Broughton, a licensed Nursing Home Administrator, has more than 19 years of administrative and leadership experience in skilled and long-term care settings with MediLodge Group, Inc. in Washington, Mich. In her career she has been a corporate-level specialist, professional speaker, educator, lobbyist, marketing project manager and consultant. She also served a four-year term on the Health Care Association of Michigan’s board as an advocate for senior care.

She has a B.A. in social work and sociology from the University of Michigan in Flint, Mich., and is currently pursuing her M.S. in management and leadership from Walsh College in Novi, Mich. Broughton lives in Fairfax with her husband Jeff and they have three adult children and three grandchildren. They attend Good Shepherd Lutheran Church in Herndon, Va.

NCR COO Elected Vice Chair of LeadingAge Ohio Board of Directors

Mark Ricketts, Corporate Chief Operating Officer for National Church Residences headquartered in Columbus, was elected Vice Chair of the LeadingAge Ohio Board of Directors. Ricketts is currently serving his first three-year term on the LeadingAge Ohio Board of Directors.

As Vice Chair, Ricketts serves as a member of the LeadingAge Ohio Board of Directors and Executive Committee, continuing his service in setting policy for the state association and helping to monitor the overall performance of the statewide association. Ricketts previously served as an Ohio Delegate to LeadingAge, the affiliated national association of LeadingAge Ohio. He has also served on the national association’s Leadership Circle and Membership Committee as well as on the Stewards of Affordable Housing for the Future (SAHF), Housing Partnership Network and Midwest and National Affordable Housing Management Associations.

Ricketts was recently named Corporate Chief Operating Officer after 12 years serving as Senior Vice President and COO (Affordable Housing). National Church Residences is the nation’s largest not-for-profit developer and manager of affordable senior housing, with more than 330 communities in the United States and Puerto Rico. In addition, National Church Residences operates supportive housing for the formerly homeless, continuing care retirement communities, home health care, assisted living, adult day care and skilled nursing facilities.

Healthsense Names A.R. Weiler Chief Executive Officer & President

Healthsense, Inc., the leading provider of next-generation remote monitoring solutions for the senior care market, today announced that A.R. Weiler has joined the company as president and chief executive officer, effective immediately. Healthsense’s co-founder and previous CEO, Brian Bischoff, will serve as a consultant to the company. 

Weiler is a health-care industry veteran who brings more than 20 years of leadership experience to Healthsense. He has held a variety of executive positions including senior vice president of payer services for Emdeon, senior vice president for Virgin HealthMiles, senior vice president of provider sales and account management at UnitedHealth Group’s Ingenix, and vice president of Oracle’s North America health-care division.

In recruiting Weiler to lead the Healthsense team, the company accelerates the momentum around extending the reach of its remote monitoring platform throughout senior living communities and homes across the United States. An established leader in providing solutions to the congregate senior living space, Healthsense is poised for an exciting expansion into the dual eligible and Medicare Advantage markets.

To support Healthsense’s expansion plan, the company recently raised an additional $7 million in financing from two industry partners: Merck’s Global Health Innovation Fund, LLC (GHIF) and Fallon Community Health Plan (Fallon). GHIF and Fallon joined Healthsense’s existing investors in the round, including Radius Ventures, Ziegler and the West Health Investment Fund.

The company’s leading product is the eNeighbor® passive monitoring and analytics platform, which offers caregivers the ability to proactively identify emerging health concerns before they turn into emergencies. Care providers can also be automatically alerted to emergent situations like falls or nighttime wandering, minimizing the potentially catastrophic consequences of such events. Healthsense’s suite of solutions can meet the monitoring and oversight needs of individuals across the continuum of care, helping them remain independent, safe and secure.

Scott Kavel Joins Greystone’s Seniors Housing Group

Greystone, a leading national provider of multifamily and commercial mortgage loans, recently announced that Scott Kavel has joined the firm’s seniors housing group as Managing Director. Based in Atlanta, the seniors housing group seeks to arrange debt and equity for borrowers across the United States, working with agency partners such as Fannie Mae and FHA, along with offering its own capital for bridge and mezzanine loans.

Kavel brings more than 20 years of experience to Greystone and has arranged approximately $5 billion in seniors housing finance throughout his distinguished career. As Managing Director, Kavel will work closely with the current team to develop and expand their client relationships, as well as originate new seniors housing business. He will report to Joe Mosley, Executive Managing Director of Greystone Servicing Corporation.

Kavel holds an MBA in Real Estate and Risk Management from the University of Georgia, and a BS in Accounting from Florida State University.

United Methodist Retirement Communities Welcomes Sherry Taylor to Board

United Methodist Retirement Communities, Inc. (UMRC) has announced Sherry Taylor as the latest appointment to its Board of Trustees.

Taylor has been a partner at the Detroit-based law firm Dickinson Wright since 2009, when she was also named one of 20 Up and Coming Lawyers by Michigan Lawyers Weekly. In 2010 and 2011, she was named a Michigan Super Lawyer’s “Rising Star” in the areas of employee benefits and the Employment Retirement Income Security Act.

Taylor is a member of the State Bar of Michigan’s Litigation Council, Detroit Metropolitan Bar Association, Federal Bar Association, Straker Bar Association, Wolverine Bar Association, Women Lawyers Association of Michigan and the Detroit Chapter of the NAACP’s Legal Redress Committee.

She earned a Juris Doctor from the Wayne State University Law School and resides in Southfield.

Two years after exiting the long-term care pharmacy business, Walgreen Co. is getting back into senior care with plans to launch a national platform targeting hospice providers and cutting out the pharmacy benefit management “middlemen,” reports Crain’s Chicago Business.

Like much of the long-term care industry, the hospice pharmacy industry is very fragmented and therefore attractive to a large national company such as Walgreen’s. It’s also more lucrative to provide medications to dying patients compared to retail sales, according to the Crain’s article. 

Additionally, the industry isn’t dominated by pharmacy benefit managers, possibly giving Walgreen’s the ability to negotiate directly with hospice providers.

The company “ultimately wants to cut out that middleman,” Steve Morton, CEO of Menasha, Wis.-based Morton Long Term Care Pharmacy Solutions, told Crain’s, as “there isn’t as much of a squeeze on the margins” in the hospice business because of less involvement from PBMs.

Plans for a national hospice platform were disclosed about two months ago according to a complaint filed by a Chicago-area hospice pharmacy that’s suing Walgreen’s in relation to a two-year distribution agreement that ended this past October.

When Walgreen’s left the long-term care business in September 2010, it cited unwillingness to make a “significant additional investment” to become a market leader in the industry, says Crain’s. Making a move into the hospice pharmacy business “seemingly signals a change in strategy” for the company, the article says, considering Omnicare is the industry’s current “dominant player” with about $174 million in revenue in 2011 from the specialized field.

The institutional pharmacy industry sells drugs to assisted living communities and nursing homes along with hospice providers and is worth about $14 billion a year. By focusing on hospice, says Crain’s, Walgreen’s will have a much more targeted approach this time around.

Read more at Crain’s Chicago Business.

Written by Alyssa Gerace

Note: This covers Q3 earnings for Senior Housing Properties Trust (NYSE:SNH) & Five Star Quality Care (NYSE:FVE).

SNH’s Net Income Falls in Q3 Due to Expenditures, Capital Distributions

Senior Housing Properties Trust saw its net income fall to $25.6 million, or $0.15 per share, for the quarter ended Sept. 30, 2012, compared to $30 million or $0.20 per share during last year’s third quarter, due to the way capital was distributed in the quarter.

The 15% drop in net income was attributed to the timing of acquisitions and deployment of proceeds received from July capital raises. Additionally, it includes a loss on the early extinguishment of debt of approximately $6.3 million related to the prepayment of a portion of the REIT’s outstanding principal balance of a Fannie Mae secured term loan; a loss on the lease terminations of approximately $104,000, related to SNH’s agreement with Sunrise Senior Living (NYSE:SRZ) to terminate 10 senior living properties leased to them scheduled to expire in December 2013; and a loss on sale of properties of approximately $101,000 related to the sale of a property in July. 

Normalized funds from operations in the third quarter rose about 15% to $74.8 million, or $0.43 per share, compared to $65.4 million, or $0.43 per share, in the same quarter one year ago.

Since July 1, 2012, SNH has acquired or made agreements to acquire 15 properties for a total purchase price of approximately $37.3 million, excluding closing costs. Most of the residents in these communities are privately funding their stays. The communities are managed by a subsidiary of Five Star Quality Care.

Some specific senior housing acquisitions include:

• July 2012—Four senior living communities in Colorado, Idaho, and Washington State with a total of 511 units for about $36.5 million, including the assumption of approximately $6.9 million of mortgage debt and excluding closing costs. The properties are leased to Stellar Senior Living, LLC.
• August 2012—A senior living community in New York with 310 units for about $99 million, including the assumption of approximately $31.2 million of mortgage debt and excluding closing costs. The property is managed by Five Star.
• August 2012—A Missouri senior living community with 87 units for about $11.3 million, including the assumption of about $5.8 million of mortgage debt and excluding closing costs. The property is managed by Five Star.
• August and October 2012—SNH entered four separate agreements to acquire three senior living communities and a medical office building for a total of about $68.3 million, including the assumption of about $!2.3 million of mortgage debt and excluding closing costs. The senior living communities are located in Mississippi, Tennessee, and Washington State and have a total of 437 living units. The MOB is in Tennessee and is 33,796 square feet. The closing of the transaction is contingent on due diligence. 

Positive Earnings for Five Star Quality Care in Q3 Following Pharmacy Sale

Five Star Quality Care, Inc. announced a net income of $16.4 million, or $0.34 per basic share, for the third quarter ended Sept. 30, 2012, reaping positive results compared to last year’s loss of $528,000, or $0.01 per basic share.

“During the last several months, we made substantial progress towards further focusing our operations on the private pay independent and assisted living business,” said Bruce Mackey, president and CEO of Five Star, in the earnings report. “Since May 2012, we have either begun to manage or agreed to manage 14 senior living communities with a combined 3,159 living units which are primarily providing independent and/or assisted living services and generate a large majority of their revenues from residents’ private resources.”

The third quarter income included a $13 million gain from discontinued operations, including the sale of Five Star’s pharmacy business to Omnicare, Inc. for $34.3 million.

“We think [the sale of the pharmacy business] is a significant milestone and helps simplify the Five Star story for investors,” Mackey said during the earnings call.

In October 2012, Five Star agreed to sell two Michigan skilled nursing facilities with a total of 271 units for $8 million. The facilities receive the majority of their revenues from Medicare/Medicaid reimbursements.

Total revenues increased 7% to $332.4 million up from $310.6 million during the same period in the previous year.

Senior living occupancy rates at Five Star’s owned and leased communities fell 30 basis points to 85.7% compared to the third quarter of 2011. However, the percentage of senior living revenues derived from residents’ private pay resources in the quarter rose to 75% up from 73%, and 92% of the company’s total revenues come from senior living. 

Written by Alyssa Gerace

Long-term care pharmaceutical provider Omnicare (NYSE:OCR) has agreed to settle a whistleblower lawsuit alleging it had paid a kickback when acquiring a pharmacy company and submitted false reimbursement claims to government health insurers, but has denied wrongdoing in court papers, reports Bloomberg Businesweek. 

The Covington, Ky.-based nursing home drugs supplier acquired Total Pharmacy Services LLC in 2004 for $25 million. Whistleblower Maureen Nehls’ lawyer said in the 2007 lawsuit filing that the acquisition “held no assets, aside from a small inventory”—meaning most of the purchase price amounted to a kickback for long-term contracts. 

Bloomberg reports:

Lawyers told a federal judge in Chicago yesterday that they reached a “settlement in principle” to resolve a 2007 lawsuit by whistle-blower Maureen Nehls, a court docket entry shows. The terms, if final, weren’t entered into the docket. U.S. District Judge John J. Tharp Jr. set a hearing for Sept. 25.

Nehls claims Omnicare’s $25 million purchase of Total Pharmacy Services LLC in 2004 included a kickback to one of its owners, Philip Esformes, and his father, Morris. That payment helped Omnicare win contracts with nursing homes owned or controlled by Morris Esformes and gave the company thousands of elderly and disabled customers, according to the complaint.

Nehls sued in Boston with [fellow whistleblower Adam] Resnick under the U.S. False Claims Act, which lets whistle-blowers sue on behalf of the government and share in any recovery. The U.S. Justice Department declined in January 2010 to join the case. They also sued under false claims laws in Illinois and Florida.

On May 11, Omnicare settled a case with the Justice Department for $50 million. The agency called it the “largest controlled substance settlement in history,” and said Omnicare gave nursing home residents medicines without a prescription, with missing prescription information or without documentation.

The former owners of Total Pharmacy Services LLC, Philip Esformes and his father, Morris Esformes, were not included in the settlement, Bloomberg notes.

“Philip Esformes understands that Omnicare made a business judgment to reach a settlement in this case,” said Philip Esformes’ lawyer, Michael Pasano, in an email to Bloomberg. “That settlement in no way speaks to Mr. Esformes’s position, and Mr. Esformes continues to emphatically emphasize he has done nothing wrong and is in no way liable in this matter.”

Read the full piece.

Written by Alyssa Gerace 

Net profits for long-term care pharmacy Omnicare Inc. (NYSE:OCR) rose to $18.7 million, or $0.17 per share, in the quarter ended June 30, 2012, compared to the same quarter in 2011 when the company lost $1.4 million and $0.01 per share due to discontinued operations. 

Gross profits rose 9.2% to $367.3 million, while net sales decreased about 1.3% to $1.54 billion. 

Omnicare, which provides drugs for the senior care industry through its long-term care division, attributed its positive net profits in part to efficiencies achieved through generic drug development and introduction, but says there is further room for improvement. 

“While our strong quarterly results demonstrate the progress we have made as an organization, we believe we have opportunity to further leverage our platform,” said John Workman, Omnicare’s interim CEO, in the earnings statement. “Looking ahead, we are committed to increasing utilization of our technology offering and clinical programs through a renewed focus on operational excellence.”

Omnicare’s Long-Term Care group saw net sales drop 6.7% to to $1,202.8 million compared to $1,289.4 million in the same period in 2011, which Nitin Sahney, the pharmacy’s COO, attributed to “seasonably weaker utilization.” However, adjusted operation income from continuing operations rose 16.1% to $150.8 million. 

In 2009, Omnicare began divesting itself of certain home healthcare and related ancillary business that were deemed “non-strategic in nature.” Accordingly, the company recorded a $57.6 million loss in discontinued operations in the six months ended June 30, 2011.

Looking forward, Omnicare adjusted its guidance for the full-year 2012 to $3.22 to $3.28 cash earnings per diluted share from its previous guidance of $3.10 to $3.20. It also expects cash flows from operations to range between $425 million to $525 million, an increase from previous expectations of between $400 million to $500 million. The expectation for revenue stayed the same at $6.1 billion to $6.2 billion.

View Omnicare’s earnings report for the second quarter of 2012. 

 Written by Alyssa Gerace  

Newton, Mass.-headquartered Five Star Quality Care, Inc. (NYSE:FVE) announced on Monday its agreement to sell its pharmacy business to Omnicare (NYSE:OCR) for $30.7 million. The senior living and healthcare services company anticipates the sale of this business will result in a capital gain to Five Star of approximately $23.5 million. 

The senior living company’s pharmacy business includes eight licensed pharmacies that operate in 13 states and provide institutional pharmacy services to 247 senior living communities with approximately 12,300 living units. 

The agreement also provides that Five Star will sell to Omnicare, or retain, certain items of net working capital invested in its pharmacy business as of the closing of the transaction, which, based on March 31, 2012 amounts, would equal approximately $9.4 million. Because of this, Five Star anticipates its net cash receipts resulting from this sale will be approximately $39.9 million, before transaction costs.

Five Star anticipates the sale will be completed during the second half of 2012.

Jefferies & Company, Inc. acted as Five Star’s financial adviser in this sale process. 

Written by Alyssa Gerace

Summer is starting to heat up along with the job opportunities and movement in senior housing. This week’s movers and shakers are a veritable list of jalapenos, hopping and hot.

Interested in a change of scenery? SHN’s job board is chock-full of opportunities for new adventures. For employers, SHN’s senior living jobs (link SLJ to jobs board) board is a bargain…..for less than a dollar a day, you can post a job opportunity that will garner national attention. Post your job today (link today to Job board).

Got some new announcements? Send them our way to movers-shakers@seniorhousingnews.com.

Lancaster Pollard Hires Lacki as Managing Director for Affordable Housing

Lancaster Pollard has announced the hiring of David Lacki as managing director of the firm’s affordable housing group. Lacki will lead a national effort to expand the firm’s investment banking and mortgage banking finance activities for income restricted and subsidized rental properties. He previously served as a director in the Housing Capital Markets Group at RBC.

“We now have national coverage by our health care and senior living groups and are looking to accomplish the same in affordable housing,” said Brian Pollard, Senior Managing Director with the firm. “Our firm’s growth has been largely through our efforts in health care and senior living finance but our affordable housing group, based out of our Columbus, Ohio home office, has been a consistent contributor to our deal flow.”

Assisted Living Concepts Appoints Executive to Lead Health Care Delivery and Regulatory Compliance Programs

Assisted Living Concepts, Inc. (NYSE:ALC) announced Sara Elizabeth Hamm, a 30-year veteran nursing executive with experience as a clinician and educator, has joined the company’s senior leadership team to assume primary responsibility for the delivery of health care and regulatory compliance. Hamm worked at ALC from 2005-2011 as Corporate Vice President of Quality and Clinical Services, has joined the organization as Senior Vice President of Quality Services & Risk Management.

Ms. Hamm earned her Bachelor of Science in Nursing from Marquette University and her Master of Science in Educational Psychology and Community Counseling from UW-Milwaukee.

Omnicare Appoints John L. Workman as Interim CEO

Omnicare, Inc. (NYSE:OCR) announced recently that its Board of Directors has appointed President and CFO John L. Workman as interim CEO. Mr. Workman’s appointment follows the Board’s acceptance of John Figueroa’s resignation as CEO and a director of the Company. Mr. Workman will also maintain his current responsibilities as President and CFO.

Omnicare also has appointed Nitin Sahney, Executive Vice President and President, Specialty Care Division, to the additional position of Chief Operating Officer. Sahney’s appointment is effective immediately. Sahney’s new position will include responsibility for the Long Term Care Division.

ProMatura Expands Team at Oxford location

ProMatura Group, LLC, recently announced an expansion of its Oxford, MS offices.

Bill Gulledge has joined the firm as Senior Market Analyst performing statistical analysis and analyzing economic and demographic data. He is also responsible for survey programming and survey results analysis. Gulledge earned a bachelor’s degree in industrial and systems engineering with a minor in mathematics from Mississippi State University. He has a Master of Business Administration from the University of Mississippi.

Judith Isacoff joins ProMatura as Vice President, Communications overseeing external communications and for the quality of ProMatura’s written products, including reports, articles, proposals, newsletters and collateral materials. She has experience as a reporter, copy desk chief and city editor at various U.S. daily newspapers, and won a Scripps Howard Foundation award for Distinguished Service to the First Amendment. Isacoff has a Bachelor of Journalism degree from the University of Missouri.

Cherry Watkins comes to ProMatura as an Executive Administrator whose responsibilities include collecting economic, demographic and industry data that describe or impact the housing market. Watkins joined ProMatura after retiring from the University of Mississippi, where she worked for 26 years in various departments, including five years in the National Center for Justice and the Rule of Law and 16 years in the Department of Physics and Astronomy. She attended the University of Mississippi, where she studied business.

GE Capital, Healthcare Financial Services Appoints Al Aria as Commercial Leader of its Corporate Finance Team

GE Capital, Healthcare Financial Services has announced the appointment of Al Aria as senior managing director and commercial leader of its corporate finance lending team.

Aria will report directly to Darren Alcus, president and CEO of GE Capital, Healthcare Financial Services. Al will lead a team focused on providing U.S. middle market healthcare companies with critical financing including asset-based and cashflow loans. Aria joined GE Capital, Healthcare Financial Services in 2006 and has held various roles within the commercial organization. Most recently he served as team leader of the healthcare sponsor finance team, providing financing to private equity firms for leveraged transactions including buyouts, acquisitions, growth funding and recapitalizations.

Executive Chairman of ISL Sue Farrow Named Finalist for Ernst & Young Entrepreneur Of The Year 2012

Integral Senior Living (ISL) has announced that Sue Farrow, executive chairman of Integral Senior Living, has been named a finalist in the Ernst & Young Entrepreneur Of The Year 2012 program in San Diego.

Farrow is the Executive Chairman and Owner of Integral Senior Living. She began working at ISL as a single employee in 2002 and has overseen the company grow to management of over 50 communities with over 2,000 employees in ten states. She has been in key leadership positions at senior living companies including Aegis Living, Sunrise Assisted Living and Transamerica Senior Living. Farrow is a Founding Board member and past President of California Assisted Living Association (CALA) and a Board Member of the Assisted Living Federation of America (ALFA). Her education includes a Bachelors Degree in Business Administration from National University and successful completion of the CPA exam.

Berkadia Expands Senior Housing Presence in Colorado

The Denver office of Berkadia Commercial Mortgage LLC recently announced the hiring of Joe Brill as a Senior Vice President with the companyʼs Federal Housing Administration (FHA) division. With more than 20 years of mortgage banking experience, Brill will assist in the origination of FHA-insured loans for both multifamily and seniors housing properties.

Brill, a licensed Mortgage Assistance Program (MAP) underwriter, most recently served as senior vice president at Johnson Capital Huntoon Hastings for five years, working in the FHA and government-sponsored enterprise (GSE) lending group. Prior to his work with Johnson Capital, Brill spent time as an underwriter at Berkadia predecessors GMAC/Capmark, and was Director of Acquisitions at ARC REIT in Denver where he oversaw the acquisition of $1.5 billion in manufactured housing assets. Earlier in his career, Brill worked at General Electric in their Astro-Space division, where he was the lead power systems engineer on the Mars Observer interplanetary spacecraft.

New Senior Vice President of Operations for Aegis Living

Aegis Living has announced the hiring of Michael Grisar, Senior Vice President of Operations. Grisar will have operational responsibility for one of Aegis Living’s three west-coast regions and will lead the operations of the multiple senior living communities in his region, overseeing the communities’ Executive Directors and staff.

Grisar spent nine years with Starwood Hotels & Resorts Worldwide included the role of Director of Six Sigma/Black Belt, overseeing multiple properties in the practices of Six Sigma. Most recently Michael served as Corporate Vice President of Operations for Stations Casinos where he was responsible for the daily hotel operations of 11 hotels in the Las Vegas Valley.

Home Health International, Inc. Announces New CEO

Home Health International, Inc. (PINKSHEETS:HHII) recently announced that it has named Elizabeth Velozo, BSN, MSNH, COS-C as the President and Chief Executive Officer of the Company.
 Velozo is the founder of Integrity Health Advisors, a health care consulting firm specializing in highly complex AHCA, Medicare and Joint Commission surveys.

Previously, she was the founder/CEO of Angeles Visitantes, Inc., a Medicare-certified home health agency in Puerto Rico with a 200 patient census, and Trinity Senior Care, Inc., a Medicare/Medicaid certified and Joint Commission accredited home health agency with a 150 patient census. In addition, she served as the CEO of Mi Farmacia, Inc. a compounding pharmacy and DME company serving the entire island of Puerto Rico, Vieques and Culebras with a range of 600-2000 patient census.

Oak Crest Hires Chris Giesler as New Sales and Marketing Director

Oak Crest, an Erickson Living retirement community in Baltimore, announced the hiring of Chris Giesler as the new Director of Sales and Marketing. In this leadership position, Giesler will be responsible for day-to-day supervision of the community sales operation.

Giesler volunteers his time with Young Life ministries in Baltimore. Prior to joining Oak Crest, he served as Director of Site Development for Site Link Wireless in Columbia. A resident of Cockeysville with his wife and three children, Giesler earned his bachelorʼs degree in business from James Madison University.

Covenant Solutions Adds Senior Vice Presidents

Covenant Solutions, a retirement community planner and developer, recently announced the addition of Steve Anderson and Paul Aigner as senior vice presidents.

Before joining Covenant Solutions, Anderson was senior vice president of Covenant Retirement Communities where he was responsible for all phases of community operations, reconstruction and master planning for 15 communities nationwide. He has a bachelor’s degree from California State University, Los Angeles and a master’s in senior services from Nova Southeastern University, Florida. He has completed several master’s level courses in business administration at Pepperdine School of Business, Malibu, Calif.

Aigner comes to Covenant Solutions from Cogdell Spencer ERDMAN, a national health care real estate investment trust. As president of the northwest region, he managed all client relationships, directed new business development and was responsible for executive oversight. Cogdell Spencer ERDMAN is now part of Lillibridge Healthcare Services Inc. Aigner also owned and operated a project management company for 14 years, helping project owners’ bring their visions to reality. Aigner has a bachelor’s degree in environmental science-architecture from the University of Washington.

Integral Senior Living Announces a New Regional Director of Operations

Integral Senior Living has announced that Mike Zeug has joined the management team as a Regional Director of Operations. In this newly created position, Mike will oversee efforts for a number of ISL communities in California and Nevada. Zeug brings over 13 years of senior living executive management experience to the position.

Prior to joining ISL, Zeug was with Atria Senior Living for seven years, as Regional Vice President, Senior Executive Director and Executive Director for the company. Prior to his time with Atria, he was with Sunrise Senior Living. Zeug has an MBA in Health Care Management from the University of Phoenix and a Bachelor of Science degree from California State University, Northridge.

ELS Announces Promotions for Seavey, Linders

Equity LifeStyle Properties, Inc. (NYSE:ELS) recently announced the appointment of
 Paul Seavey to Senior Vice President of Finance and Treasurer. Seavey has worked for the Company since 1994 serving in various roles within finance and accounting. He will oversee all finance and accounting activity, and he most recently led the effort to raise debt and equity capital associated with the Hometown America transaction.

Additionally, ELS has appointed Martina Linders has been named Vice President of Investor Relations and Financial Planning. Linders has worked for the Company since 1993 serving in various roles, and will now oversee investor relations and will be responsible for budgeting. Furthermore, effective May 10, 2012, Marguerite Nader was appointed President in addition to her current role as Chief Financial Officer reporting to Chief Executive Officer Thomas Heneghan.

Fleegle joins Asbury Communities System as Executive VP of Mission Development

Asbury Communities has appointed Douglas J. Fleegle to the position of Executive Vice President of Mission Development. In addition, Fleegle will serve as President of The Asbury Group, Inc., a consulting arm of Asbury Communities, Inc. The announcement was made by Ed Thomas, President & CEO of Asbury Communities.

Fleegle served 10 years as president and CEO of United Church Homes and Services, a not-for-profit organization which operates, among other interests, three continuing care retirement communities and seven HUD 202 programs. During that period, Fleegle oversaw the establishment of a four-county, Medicare and Medicaid-accredited Program of All-Inclusive Care (PACE) system, which delivers care to seniors in their homes. Prior to that, Fleegle was an executive director of two senior living communities operated by Presbyterian Homes, Inc., and Homewood Retirement Centers, Inc.

Fleegle holds a masterʼs in business administration from St. Francis College in Pennsylvania, earned his bachelorʼs degree in community health from Slippery Rock University, and is a licensed nursing home administrator in North Carolina, Pennsylvania and Virginia.

Lifespace Communities Names New Foundation Director

Ganesh Ganpat has joined Lifespace Communities, Inc. as foundation director. Ganpat’s newly created position will work with each of Lifespaceʼs 12 senior living communities to maximize their charitable effortsGanpat has 23 years of management experience with not-for-profit organizations and 17 years of professional fundraising experience with museums and higher education institutions.

Throughout his career he has focused his efforts on financial management, marketing, fund development, public relations, audience development, employee and volunteer management, and establishing partnerships. Ganpatʼs fundraising experience includes capital campaigns, annual giving programs, major gifts campaigns, special event fundraising and planned giving programs.

Most recently, he served as the executive director of the Des Moines Area Community College Foundation, where he was involved with several capital campaigns, and significantly increased the collegeʼs endowment and scholarship funds. Ganpat began his career with the Science Center of Iowa in museum operations and fundraising.

Pharmaceutical company Omnicare, Inc. (NYSE:OCR), the nation’s largest pharmacy for long-term care facilities, must pay the U.S. government $50 million in a settlement over complaints it dispensed painkillers to nursing homes and other senior care facilities across the country without proper prescriptions or authorization.

The Covington, Ky.-based company’s settlement with the Department of Justice is the second-largest civil settlement in history of the Controlled Substances Act, and follows a Drug Enforcement Administration investigation of “alleged errors and deficiencies” in how certain Omnicare pharmacies distributed controlled substances.

“While DEA regulations specifically address retail and hospital pharmacy operations, long-term pharmacies have historically operated in a less defined middle ground, dispensing controlled substances on instructions from long-term care facility staff after the staff’s consultation with the ordering authorized prescriber,” said Omnicare in a statement about the settlement. “This civil settlement makes it clear that DEA interprets its regulations to require the ordering authorized prescriber to either sign an order containing all of the elements of a valid prescription prior to dispensing, or in limited emergency circumstances for Schedule II controlled substances to speak directly with the pharmacy prior to dispensing.”

Omnicare’s CEO, John Figueroa, said the pharmaceutical company “understands and accepts” the DEA’s efforts to make sure appropriate procedures are followed when distributing drugs. “While requiring authorized prescribers to communicate directly with the pharmacy can potentially cause delay, we have committed ourselves to shortening the time in which nursing home residents receive required medication,” he said. 

As part of the settlement, Omnicare has agreed to make the payment within the next few days in exchange for being able to continue dispensing medication.

The company has developed an electronic prescribing application for controlled substances for the institutional market which is expected to improve patients’ quality of care while adhering to DEA regulatory interpretations; it also transmits electronic prescription orders for other non-controlled drugs.

Written by Alyssa Gerace