Civitas Senior Living, an assisted living and memory care operator based in Fort Worth, Texas, is expanding its scope of care with the opening of Civitas Post-Acute, a division that will manage skilled nursing and rehabilitation centers. Civitas specializes in development, acquisitions, operational management and consulting for senior housing properties.
Civitas Post-Acute will begin its operations with the acquisitions of two skilled nursing facility properties in the East Texas community of Jefferson. The first acquisition will be a stand-alone skilled nursing facility, says Wayne Powell, Civitas CEO and owner. Civitas’ post-acute division also is being introduced during a notable growth phase for the company, which was founded in 2012 and will be completing its fourteenth development property in Frisco, Texas, in December 2015. The facility is a 28-unit memory care development.
“With our continued growth we are looking at acquisitions that include a skilled nursing product,” Powell said in a prepared statement. “Introducing Civitas Post-Acute allows us to expand our management portfolio. Our focus will be on continuing care retirement communities (CCRC) which include assisted living, independent living and skilled nursing facility (SNF) on the same campus. Our first acquisition will be a stand-alone SNF that will provide he platform for the future.”
That “platform” facility provided the impetus for the new division, Director of Advertising Andrea Owen says.
“[Civitas] always has had the interest in post-acute,” Andrea Owen, director of advertising at Civitas, tells SHN. “It’s perfect timing now because the deal happened so quickly and the demand is high.”
The announcement comes at a time when post-acute care services indeed are in high demand, but this part of the senior care sector also has stirred controversy. Some providers have come under fire for Medicare billing practices. Still, the opportunity for growth in the space is substantial; Indiana-based Mainstreet, the country’s largest developer of post-acute, transitional care facilities, is pursuing a $5 billion, five-year pipeline.
The two SNF Jefferson properties, Pine Hill Terrace, a 120-unit facility, and Magnolia Manor, a 68-unit facility, will undergo “extensive renovations” to meet the needs of customers, the company stated.
“The skilled nursing will be upgraded to be more competitive,” Powell told SHN. “The rehab area will be upgraded. A complete makeover is what we are going to do.”
Powell also said the the division will continue to look for further opportunities for growth in the skilled nursing space, though the properties going forward will be integrated into CCRCs. Civitas currently has ongoing negotiations to acquire a CCRC for the first quarter of 2016.
“We’re going to be opportunists,” Powell told SHN. “We’re going to prepare ourselves so that when we have the opportunity, we are ready to take it. We have not been active in that area for the simple reason that we’ve not had the SNF division running. Now that we do, we will become more active in that side.”
Civitas Senior Living had not returned SHN’s request for further details as of press time on Thursday.
This article was updated on Friday, September 11, to reflect comments from Civitas Senior Living CEO and Owner Wayne Powell.
Written by Amy Baxter