And it’s a healthy decision . . . for all of us!
By Steve Moran
(Tuesday, December 2, 2015) Elmcroft Senior Living and Signature HealthCare issued a joint press press release announcing the sale of all of Elmcroft’s skilled nursing centers to Signature. Here are the details:
Elmcroft sold 18 skilled nursing and rehabilitation centers with approximately 1,700 beds.
After the transaction Elmcroft will have 82 independent living, assisted living and dementia care communities that serve approximately 7,000 residents in 18 states.
Signature is the 7th largest skilled nursing provider with 133 post-acute centers in 11 states. They have 23,000 employees.
This is a particularly good strategic fit for Signature:
“This purchase augments Signature’s strategic vision for the Signature Integrated Clinical Network launch in Kentucky, linked to its recent launch of the Signature Advantage Medicare insurance company, the first ever Institutional Special Needs Plan (I-SNP) in the state operated by a provider and creating a statewide footprint to expand Signature’s acute care hospital partnerships for bundled payments, risk-sharing partnerships and clinical collaboration.”
The Industry is Growing Up
These kinds of transactions are very healthy for the industry. Here is why:
It suggests that the industry is becoming more sophisticated. It is clear from the press release this is a huge win for Signature. I am hoping to connect with Pat Mulloy, the CEO, to talk specifically about how this transaction benefits Elmcroft but I am assuming it is equally beneficial for them.
In both cases it appears the respective organizations will be able to more narrowly focus on their core competencies.
When senior living organizations focus on their core competencies everyone benefits. Residents are better served; team members become more competent and have more opportunities; families end up feeling much better about the care their loved ones are receiving.
I am thinking this coming year could be a year of very strategic transactions with consolidations happening based on care competencies and geographical efficiencies.