Omega Healthcare Investors and CVS Health Corp. executives talked about the importance of senior living to their plans Wednesday on their second-quarter earnings calls.
Omega looking to ‘turbocharge’ relationship with Maplewood
Omega Healthcare Investors’ relationship with Maplewood Senior Living — Omega has 15 Maplewood communities in its portfolio — is “incredibly important, and we’re doing everything we can to turbocharge that,” Omega CEO Taylor Pickett said Wednesday on the real estate investment trust’s second-quarter earnings call.
The REIT continues to look for development opportunities “across the spectrum of potential operators,” he said.
Omega and Maplewood’s assisted living / memory care high-rise in Manhattan, Inspīr Carnegie Hill, is on track to open in early 2020, Chief Corporate Development Officer Steven Insoft said. The project is expected to cost approximately $285 million.
“The momentum of the deposits being taken is consistent with the levels we would see in the suburban locations that Maplewood has executed really well on in the past,” Insoft said. “So we’re cautiously optimistic. The market is accepting the pricing.”
At the end of the second quarter, Omega’s senior housing portfolio totaled $1.6 billion of investment, including 127 assisted living, independent living and memory care assets in the United States and United Kingdom, he said. The latest Maplewood community is a newly opened 98-unit assisted living community in Southport, CT.
Construction and labor costs are tempering excitement related to development, but just slightly, Insoft said.
For more on Omega’s second-quarter earnings call, see the article in sister publication McKnight’s Long-Term Care News.
CVS sees growth in senior living through Omnicare
CVS Health Corp. continues to see growth opportunities in independent living and assisted living through Omnicare, its long-term care pharmacy business, the company’s chief operating officer, Jonathan Roberts, said Wednesday on the company’s second-quarter earnings call.
“Our differentiated offerings in that space are helping us win in that part of the market,” he said.
Improved service helped performance of the retail / long-term care segment improve “ahead of plan” in the quarter, Roberts said.
“That was a big opportunity, and our clients see it and are pleased with our progress. As we’re out competing for new business in the marketplace, I would say we are winning more than we have historically won over the last few years,” he said. “Our retention of our existing business is improving, and that’s primarily due to our improved service. But it’s not where we want it to be, and we’re continuing to work on that.”
Omnicare “finally” is making “good progress” at managing costs, too, Roberts said.
Learn more on the CVS corporate website.