Providence Group

The nursing home today is largely considered a real estate play. What does the next generation of the nursing home look like? Where does the health-care-centric investor fit in or around it?

Utah-based Providence Group is a management and ownership chain of 152 nursing home facilities. Providence Group operates in the states of South Carolina, California, Nevada, Texas, Kentucky, Ohio, and Missouri. CEO Jason Murray assumes the future of nursing home industry is a decentralized model to avoid accountability.

He told Skilled Nursing News on the Rethink podcast:

“We as a company believe as we continue to grow as we continue to scale, in not only the markets that we’re currently in but in other markets across the country, we can still accomplish growth by not adding those layers. I think part of that battle of working through that balance is first understanding that we can’t get too top heavy as an organization.” 

He admits that safe staffing has been and still is a major challenge for the industry.

“One of the specific challenges that we’ve been facing in every one of the states that we’ve been in is the pressures from the staffing agencies and their practice of essentially poaching our staff and then renting them back to us for a much higher wage than what we paid them otherwise.”

The scheme has been replicated by operators across the country. The money flows up but the liability stays local.