Capital Funding Group
SavaSeniorCare moved a 29-asset long-term care portfolio in a deal. The deal included a $262.6 million loan for the refinancing of 29 nursing homes. These 29 nursing homes transitioned to four “regional operators”. It is unclear if the regional operators are related entities to the for-profit chain. The portfolio spans across Colorado, California and Wyoming. The deal includes 28 skilled nursing facilities and one joint skilled nursing and assisted living facility, with a total of 3,140 beds.
Erik Howard is the executive managing director of Capital Funding Group. Howard said the deal was complicated. Howard said the most difficult part of the deal was underwriting the tenants on the same underlying real estate portfolio and loan.
“The deal came with significant deal structuring complications as we worked through covenants and other items related to each of the four tenants,” Howard said. “It also presented challenges with the state-by-state change of ownership with different operators transitioning at different times.”
SavaSeniorCare previously announced these divestitures last year. It might be related to the 2021 Settlement Agreement with the DOJ over False Claims Act violations.
Amy Goldsmith is senior vice president of care management and care coordination for SavaSeniorCare. She thinks hiring MDS (minimum data set) nurses and getting everyone involved in care coordination increases quality of care. Goldsmith said that Sava has looked to expand the job roles of its staff because “there’s not really an option.” She warned:
“We have always worn multiple hats in long-term care … but now I feel like they’ve just gotten heavier. So our MDS nurses and our managed care coordination nurse have come together as case management.”
Goldsmith wants nurses to take on an administrative role with managed care for Sava. Caregivers should understand how to coordinate care with all payer types. Even the admissions and sales teams at Sava have “beefed up” their knowledge in the patient driven payment model (PDPM). One way Sava is trying to take some burden off its staff is with technology.
The Atlanta-based operator has added kiosks and other machines at the front door of their facilities.
“I would strongly encourage everyone to look at those devices for their facilities,” she said. “I don’t need a registered nurse or licensed practical nurses sitting at the front desk answering phones and doing temp screens. There’s much better use for that nurse in direct patient care.”
SavaSeniorCare needs all the help they can get. Hopefully, the SavaSeniorCare, LLC and SavaSeniorCare Administrative and Consulting, LLC Corporate Integrity Agreement will help increase quality of care.