My colleague and contributing editor Kate Upson recently talked to Deborah Burkart of National Equity Fund, one of the largest, not-for-profit equity funds in the country, about why the Low Income Housing Tax Credit program is such a successful tool in creating affordable senior housing.
You can click here to listen to the interview (4.5 minutes) or read the transcript below.

Kate Upson: Welcome to Expert Opinion, a Conversation with Deborah Burkart.  Debbie is Vice President and National Director of Supportive Housing and Assisted Living for the National Equity Fund, one of the largest, non-profit equity funds in the country.

Her expertise is in helping providers utilize low income housing tax credit equity to create and preserve housing for the low-income elderly.  She will be a panelist in our July 25th audio conference on affordable senior housing and today gives us a preview.

Debbie, can you please summarize the Low Income Housing Tax Credit Program and how it works? Read more…

We figured something was up last Friday when, after steadily dropping in value since June 19, Manor Care’s stock traded up by more than $3.00 per share during the day on heavy volume of 2.4 million shares.  Final bids had been due the previous Friday, June 22, and it took just a week for the board to sort things out.  We had heard that the buyers were getting a little nervous, and the final price agreed to seems to reflect that anxiety, but was a little disappointing, especially to anyone who had purchased the stock since the beginning of May.  Carlyle is paying $67.00 per share, a level that is lower than where the stock has traded on 20 separate days in the past two months.  The good news is that after Manor Care made its “strategic alternatives” announcement in April, and the stock price jumped to $65.00 per share in less than two weeks, we were not alone in stating that this was about the top value for the company.  If the bidding had gone to the $70.00 to $75.00 per share range, then we certainly would have thought the market had hit the “irrational exuberance” threshold once again.  But even at $67.00, we believe Carlyle is paying top price for a high-quality company that may not have much room for improvement.  We will have a more detailed analysis in the upcoming July issue of The SeniorCare Investor.    

Not two days back from vacation out of the country, you can imagine my surprise when I picked up the phone and it was a special agent from the securities fraud division of the FBI on the other end of the line.  I didn’t even know that the FBI had a securities fraud division, as I assumed these matters were handled by the SEC.  Well, apparently the FBI also looks into securities fraud, and this agent had received a few copies of The SeniorCare Investor and wanted an additional four issues Read more…

My colleague and contributing editor Kate Upson recently talked to Brian Pollard of Lancaster Pollard & Co., a leading industry banker and lender, about how senior care providers can benefit from the current economic climate.
You can click here  to listen to the interview (6 minutes) or read the transcript below.

Kate Upson: Welcome to Expert Opinion, a Conversation with Brian Pollard, President and Senior Managing Director of Lancaster Pollard & Co.  Brian was an original co-founder of this Columbus, Ohio-based firm and is Chairman and CEO of Lancaster Pollard Mortgage Company.  He has almost 20 years of investment banking experience focused on the health care and senior living sectors and is a frequent speaker at state and national conferences.

Brian, how would you characterize the current general health of the senior living and senior care markets?

Brian Pollard: I would characterize the general health as very strong—2006 was the third year in a row of improved Read more…

There are times when we think that problems and issues in the delivery and financing of senior care services in the United States are somewhat unique to us given our non-nationalized health care system and various payment sources.  Guess again.  Last week we were able to attend the opening session of The Scottish Parliament in the capital of Edinburgh under the new leadership of the Scottish National Party, a party which, according to one local we chatted with, has Scottish nationalism, and just about nothing else, at the top of its party platform.  But the Executive Debate on that overcast, chilly June afternoon (so what else is new for Scottish weather?) was on “Free Personal Care.”  Apparently, the elderly in Scotland had not seen a payment increase in Read more…

My colleague and contributing editor Kate Upson recently talked to Maria Dwight , a leading industry consultant with 40 years of experience, about what current and future seniors want from their retirement, in both lifestyle and health care.
You can click here  to listen to the interview (5 minutes) or read the transcript below.

Kate Upson: Welcome to the SeniorCare Investor and Senior Living Business interview with Maria Dwight, the founder, president and chief executive officer of Gerontological Services Incorporated.  Maria has more than 40 years experience in programming and planning facilities and services for seniors, with an emphasis on the inter-relationship of housing, health and social services.

Maria, can you please share you views on the present state of the senior living and care market, and where you think it is headed? Read more…

Late Monday, Fillmore Capital Partners issued a release lambasting the Genesis HealthCare board of directors for conducting an unfair auction process of the company, which, according to Fillmore’s president, Ron Silva, was “to the detriment of the shareholders, the patients and Fillmore.”  While we can understand why Fillmore would be a sore loser, the shareholders have to be thrilled with the outcome, other than those who sold out too early.  But to the detriment of patients?  That is about as weird and bizarre as they come, and perhaps even desperate. Read more…

After reading the press release from Genesis HealthCare this morning announcing a revised merger agreement with Formation Capital and JER Partners for a deal price of $69.35 per share and a $40 million break-up fee, Fillmore Capital Partners dashed off its own statement criticizing the Genesis board for agreeing to the higher break-up, which had the “effect of prematurely terminating this auction for a second time.”  Fillmore had already agreed “to pay” the previous $15 million Read more…

It is with deep regret that I have to write that Bill Colson, the founder of Holiday Retirement Corporation and Colson & Colson Construction, passed away yesterday after a battle with cancer. Bill was an industry leader and pioneer, an early backer of the American Seniors Housing Association, one of the “good guys” in the industry and a friend to many of us. Perhaps a good description of Bill would be to call him a gentle giant, a giant in the industry and among his peers, but a gentle man about whom we have never heard an unkind thing said over his 40 years in the business. And that says something. Bill was revered by his employees, who thought they were part of a large family, and had the utmost respect of his peers in the industry. But above all, he was a family man, devoted to his wife, Bonnie, and two sons, Bart and Brad, who worked in business with him much like Bill did with his father when the two of them started out together back in the 1960s. Bill will be missed by all of us, but he will never be forgotten. He was truly one of a kind.

Over the weekend, Formation Capital and JER Partners increased their offer for Genesis HealthCare by $1.20 per share to $69.35 per share, topping rival bidder Fillmore Capital by 10 cents per share. Formation also kept in its timing premium, with the price increasing by $0.0171 per share per day if it does not close by July 31 ($0.51 per month), and then $0.019 per share per day after August 31 ($0.57 per month). These timing premiums are slight increases from Formation’s previous offers. But the nail that may be in the coffin of Fillmore is the revised break-up fee, which has increased from $15 million to $40 million, or the equivalent of about $2.00 per share. To me, this is a statement from the board that enough is enough and the bidding is over. The board may also have had an indication that Fillmore would not go higher, but we don’t know that. Read more…