Diversified Healthcare Trust President and CEO Jennifer Francis
Ahead of schedule, Diversified Healthcare Trust late Wednesday announced that it completed the management transitions for 107 of senior living communities formerly managed by Five Star Senior Living. The communities now are managed by 10 regional operators.
DHC President and CEO Jennifer Francis said the transitions occurred “well ahead” of the year-end timeline announced in April. Five Star now also has completely exited the skilled nursing business.
“This diversified group of new operators was carefully selected to drive performance and maximize value on a community-by-community basis,” Francis said in a news release. “We also expect that the results for the 120 communities that Five Star continues to manage for DHC will improve as Five Star continues to refocus its business and align its structure to optimize operations.”
The management moves were completed as part of an agreement between DHC and Five Star to transition 108 communities. DHC plans to close and is looking at redevelopment opportunities for one remaining community in Delaware.
In April, Five Star said it would focus on larger senior living communities and stand-alone active adult and independent living communities. Ninety-one percent of the 140 communities it now owns or operates across 28 states are either independent living or assisted living, with the remaining 9% in memory care.
The operator also will retain all of the 45 Ageility rehabilitation and wellness outpatient clinics located in the transitioning communities. The Ageility division currently serves approximately 14,600 older adult customers in 223 outpatient clinics across 28 states, Five Star said.
“In the coming months, we expect to turn our attention to efforts to enhance the resident experience at our communities and develop a cost-efficient and scalable platform to support our operations and drive growth,” Five Star President and CEO Katie Potter said in a statement, adding that the company will continue to diversify its business through ongoing investment in Ageility and expanding its concierge service offerings.
