While many for-profit and non-profit senior living organizations are branching out and offering a broader spectrum of care services to residents, one major provider says it’s going to stick to what it’s good at: senior housing.
That’s not to say residents in Texas-based Capital Senior Living’s (NYSE:CSU) communities won’t have access to care services.
“We choose not to be in the ancillary business, not to dabble,” said Larry Cohen, CEO of Capital Senior Living, during the 2014 Bank of America/Merrill Lynch Health Care Conference. “We choose to focus on core competency, and allocating resources to [our] private pay business. We think we can get third parties who can [provide those services] better.”
Capital Senior Living rents space in many of its 113 communities to third-party providers of rehab, hospice, and home health providers, and also works with primary care physicians.
“We’re getting large companies like [home health, hospice, and rehab services provider] Gentiva to come in, with their patented programs on balance and other initiatives, that can really care for our residents,” Cohen said.
During a question-and-answer session following Cohen’s presentation, an audience member asked about the implications of the Brookdale and Emeritus merger for Capital Senior Living and the industry at large. The merger will result in the largest senior living company, with a portfolio of more than 1,160 communities.
Brookdale and Emeritus have announced plans to expand Brookdale’s burgeoning ancillary services platform of home health and therapy services to Emeritus communities, expected to generate $100 million of revenue a year.
“Even though they’ll be the largest operator, they only serve 10% of the market,” Cohen said, going on to note that the Brookdale/Emeritus portfolio doesn’t overlap much with where Capital Senior Living communities are located.
Access Capital Senior Living’s presentation at the 2014 Health Care Conference.
Written by Alyssa Gerace