More than 800 not-for-profit senior living organizations have changed sponsor or owner since the year 2010, and approximately two-thirds of those changes have occurred since 2015, according to specialty investment bank Ziegler.
The percentage the percentage of not-for-profits that are acquiring for-profit communities has risen, the company said in the latest issue of Senior Living Finance Z News. Closures represented approximately 11% of the transitions during that time period.
Not-for-profit senior living organizations are facing increased challenges to stay afloat, with many looking to affiliations, acquisitions or mergers, said Lisa McCracken, director of senior living research and development at Ziegler. Roughly one-quarter of the sponsor transitions between 2015 and the first quarter of 2021 were not-for-profit to not-for-profit affiliations or mergers.
The pandemic exacerbated the financial situation for not-for-profit long-term care facilities, McCracken said, noting that added healthcare regulations, high leadership turnover and, in some cases, decreased revenue made partnerships all but inevitable for many.
