Operators’ bottom lines clearly have been hit hard by the COVID-19 pandemic, but a new report by specialty investment bank Ziegler shows just how hard. The firm surveyed 230 senior living operators, largely representing nonprofits, and found that 62% reported a monthly revenue downturn of at least 6% that could be directly attributed to COVID-19.
Just more than one-third (36%) reported a monthly revenue decrease of between 6% and 10%, whereas 13% reported a decrease between 11% and 15%, and another 13% reported revenue decreases of more than 15%. The operators reporting the greatest decrease in monthly revenue also reported lower assisted living and skilled nursing occupancy levels, with a median assisted living occupancy of 80% and a median skilled nursing occupancy of 70%.
The findings also revealed that roughly 70% of operators are not currently offering any type of discounts in response to COVID-19 pressures. Further, the reported median occupancy for those who reported they were not offering any sales incentives was higher than those offering some type of incentive.