Partners Acquire Skilled Nursing Portfolio

Two investment firms with a strategic partnership enhanced their skilled nursing facility portfolio with the acquisition of 14 Mid-Atlantic facilities.  The newly acquired facilities, operated by Consulate Health Care, are located in Virginia, Maryland, Pennsylvania.

The partners…Formation Capital and Safanad have done this before... to the tune of over $1B invested in the sector.  Other recent acquisitions include:
2013… 36-property senior housing portfolio across 13 states
2012… 68-property portfolio on the East Coast
2011… 36 senior care facilities across 3 deals

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Urgent Care Still on Fire

In a recent article, the NY Times restated a fact that we've know for awhile.  The urgent care healthcare segment continues to be Hot.  As noted by the author, Julie Creswell, "The business model is simple:  Treat many patients as quickly as possible."  From this simple approach, the industry has grown to an estimated $14.5 billion business and garnered the attention of commercial insurance companies, regional health systems, local hospitals.  And now..private equity firms.  In fact, PE investors are driving the growth these days.  Of course, expensive ER visits, limited office hours, the more insureds/less doctors conundrum may have contributed to the UC interest and clinic increase.  (~9000 US clinics)

Certainly, well-run platforms are appealing - wonder how many will evolve into a McDonald's type brand?  What do you think?

>>More food for thought:  Race Is On to Profit From Rise of Urgent Care