Comeback On The Horizon After Pandemic Lays Bare Senior Housing Sector's Weaknesses
The nursing home industry's fundamentals amid the coronavirus pandemic are stark. As of mid-January 2021, COVID-19 has killed more than 136,000 residents and staff of U.S. nursing homes and other long-term care facilities, according to AARP and the Scripps Gerontology Center at Miami University in Ohio. Occupancies at nursing homes and assisted living facilities are down nationwide as few people move in, and many facilities are losing money. Residents are now being vaccinated against the disease, but the question remains: Has the catastrophe done long-term damage to the industry? In the long run, the industry will recover, experts say. The pandemic will wane and the same forces driving its growth, namely demographic trends and the fact that such care is need-based, will come back into play. "The industry isn't going to rebound fast, but it is going to rebound," American Healthcare Investors founding partner Danny Prosky said. "Health care is a demographic story because we have an aging population. That's going to happen. It's already happening." Read more
