Five Star Senior Living is exiting the skilled nursing industry completely. The management of 108 communities will transition to other operators. Five Star President and CEO Katherine “Katie” Potter said in a statement:
“We believe that this shift in our focus is critical to the future success of Five Star and better positions us to expand our senior living management business and continue to diversify revenue sources in the future. More specifically, the implementation of this new strategic plan will showcase the operational strengths of Five Star to current and potential partners and customers in the future.”
The management of 108 senior living communities represents 7,500 beds. Real estate investment trust Diversified Healthcare Trust will amend management agreements with new operators.
Five Star’s future focus will be on larger independent living, assisted living and memory care communities with less regulatory oversight.
I say good riddance.