Seniors Housing Business

AUG-SEP 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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Page 40 of 80

40 Seniors Housing Business n August-September 2018 © 2018 BOK Financial Corporation. Services provided by BOKF, NA. Member FDIC. BOKF, NA is a subsidiary of BOK Financial Corporation. *Transaction included $1.1 million of junior debt financing from BOK Financial Capital Corporation, a subsidiary of BOK Financial Corporation. Banking Services Designed For Healthcare From A Partner With Experience You Can Trust. BOK Financial has experienced professionals who can help you balance growth and expansion while providing capital support. Multi-facility Senior Housing Operator Acquisition of a portfolio of properties $135 million loan syndication Maryland Skilled Nursing Facility Term loan & revolving line of credit for acquisition $23.6 million New York Multi-facility Senior Housing Operator Acquisition, finance & bridge loan for seven properties $20.5 million Colorado Real Estate Investment Firm Portfolio refinance for three senior living facilities $7.7 million Ohio Assisted Living Facility Owner/ Operator Refinance two senior living facilities $23 million Colorado & Oklahoma Skilled Nursing Facility Owner/Operator Acquisition of Senior Housing Campus $6.8 million* Missouri Recent Healthcare Client Credit Solutions 918.588.6405 | living operators to have input and control over ancil- lary services as the frailty of residents increases. Bickford recently pur- chased ValuMed Pharmacy of Sioux City, Iowa. The com- pany provides medications to residents at all Bickford buildings. "ValuMed will add to our bottom line," says Fairbanks. But a new revenue stream was not the pri- mary motivation for the purchase, he adds. Instead, the ValuMed acquisition allows Bick- ford to control the management and delivery of pharmacy services. "Medications are such a key component of assisted living," he explains. "We wanted to have a say in how that happens in our branches." How to manage third parties Balfour Senior Living offers home healthcare and home care to residents through outside providers, which are tightly managed by Bal- four. Headquartered in Louisville, Colorado, Balfour is a developer, owner and operator. Six Balfour properties are open and three are under construction. All of the properties are located in Colorado, except for one under con- struction in Ann Arbor, Michigan. Last year, Balfour initiated a strict list of requirements for outside service providers. The new rules reflect an effort to address a problem faced by many assisted living providers — that they can be held responsible for the work of third-party companies. Complaints or problems with outside pro- viders can also reflect poorly on the assisted living com- pany, sources say. "We work with 15 home health companies," says Michael Schonbrun, founder and CEO at Balfour. He admits the company had previously been somewhat lax about who was working in the buildings. Now outside pro- viders must pass drug tests and criminal back- ground checks. A certain level of insurance is also required. "If they want to serve our resi- dent, they must live by these standards," says Schonbrun. "We allow zero exceptions." Balfour generates no revenue from the ser- vices. A rehabilitation service rents space in several communities, which produces a small income, says Schonbrun. Friendship Senior Options, a nonprofit owner and operator based in Schaumburg, Illinois, offers an in-house home care service. The orga- nization operates two continuing care retire- ment communities (CCRCs): Friendship Village and Greenfields of Geneva, both in the Chicago area. Home healthcare, therapy and hospice ser- vices are provided by third-party companies. Friendship Senior Options partners with Amita Health, which leases space at the property for a geriatric clinic that is open to the public. The in-house home care agency works mostly with residents of the independent living apart- ments, providing help with the activities of daily living. The services are only avail- able to residents of the two Friendship campuses, which together have a total of about 600 residents. Approximately 100 to 120 residents purchase home care services. Residents pay for the services they receive. Like many other senior living providers, Friendship Senior Options doesn't consider ancillary services to be a revenue driver. "We just cover our costs," says Ben Gilchrist, vice president of operations at Friendship Senior Options. "It's a service to maintain quality of life so independent living residents can stay in their apartments." Creativity boosts bottom line About 18 months ago, Kensington Senior Living launched a private duty team. Kens- ington is based in Reston, Virginia. The com- pany operates five properties and has another building under construction in Redondo Beach, California. The private duty aides provide additional support for residents — accompanying resi- dents to the hospital, taking them on outings, and providing the extra help that's needed at times. The aides are also cross-trained to fill in for the everyday assisted living staff. The team consists of 15 to 20 aides. About 60 Nita Sommers Honor Maribeth Bersani Argentum Alan Fairbanks Bickford Senior Living

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