NIC Notes

Insights in Seniors Housing & Care

Market Trends  |  Workforce

2017 Transaction Volume Down Slightly From 2016

By: Bill Kauffman  |  January 31, 2018

The 2017 preliminary closed transactions data is in and it shows a slight decline in dollar volume compared to 2016. Seniors housing and care closed transaction volume in 2017 registered $14.1 billion, which included relatively weak second and fourth quarter transaction volume. The $14.1 billion includes $7.9 billion in seniors housing and $6.2 billion in nursing care.  The total volume was down 2.8% from the previous year’s $14.5 billion, but down 35.5% from 2015 when volume came in at $21.9 billion.  If these figures hold as we finalize the 2017 numbers then it will be the lowest year in closed transactions volume since 2012.

Economic Trends  |  Market Trends  |  Seniors Housing  |  Workforce

Five Key Takeaways from NIC’s Fourth-Quarter 2017 Seniors Housing Data Release

By: Beth Burnham Mace  |  January 24, 2018

NIC MAP® Data Service clients attended a webinar earlier this month on the key seniors housing data trends during the fourth quarter of 2017. Key takeaways included the following.

Economic Trends  |  Market Trends  |  Workforce

U.S. economy created 148,000 jobs in December 2017

By: Beth Burnham Mace  |  January 05, 2018

The Labor Department reported that there were 148,000 jobs created in the U.S. economy in December.   This was below the consensus expectation of 190,000 jobs.  This marked the 87th consecutive month of positive job gains for the U.S. economy.  Revisions subtracted 9,000 jobs to the prior two months.  For all of 2017, the economy generated 2.1 million jobs and averaged 171,000 per month.  This marks the second time on record that the economy has created at least 2 million jobs a year for seven consecutive years (the first time was in the 1990s). The 2.1 million increase was the smallest since 2010, however.

Market Trends  |  Regulatory Environment  |  Skilled Nursing

NIH-Funded Study Raises Questions about Accuracy of Five-Star Quality Ratings

By: Liz Liberman  |  January 04, 2018

A recent study conducted with financial support from the National Institute for Health Care Management, part of the National Institutes of Health (NIH), and published in the journal Production and Operations Management found that California nursing homes may be artificially inflating their self-reported data to the Centers for Medicare and Medicaid (CMS) for the five-star rating system on Nursing Home Compare, a website used by consumers, payors, and others to evaluate nursing homes. The five-star rating, discussed at length in a previous NIC blog post, is comprised of a health inspection, staffing levels, and quality metrics. The authors of the study argue that many California nursing homes inflate their self-reported quality metrics, which measure the quality of care patients and residents receive in skilled nursing properties. Their analysis considers the financial incentives that drive such false reporting, providing one of the first analyses of how five-star scores impact profitability. The study demonstrates the need for operators and investors to consider multiple data sources and follow quality metrics closely.