Public Finance Webinar: SNF or No SNF… a Question for Today’s Life Plan Communities

Many Life Plan Communities (“LPCs”) originally started as a nursing care center and then added senior housing, assisted living and recently memory care. Over the years, the nursing care center shifted from providing primarily custodial care to restorative care, eligible for Medicare reimbursement and direct admits of non LPC patients from the hospital. This was a strong economic model for several decades, but recently the challenges to comply with increasing regulation, operate with declining reimbursement, retain staff, implement technology and electronic medical record systems, and maintain market share are causing LPC providers to rethink the role and necessity of a licensed nursing facility on their campus. The pressures impacting the nursing care sector have been exacerbated by opportunities to provide more complex medical care within licensed assisted living and memory care.

As LPC providers evaluate the strategic question of how to provide residents with a continuum of care and whether that includes on-campus nursing care, there are a number of logistical implications that must be considered, including impact on outstanding tax-exempt debt and 501(c)(3) status as well as other organizational, financial, accounting, regulatory and disclosure requirements.

This presentation will address:

• Review challenges and market trends related to SNF sector
• Discuss role of nursing care within LPC and strategic options both on and off campus
• Identify impact on outstanding tax-exempt debt and 501(c)(3) status and other potential organizational, financial, accounting, regulatory and disclosure requirements and consequences

Speakers:

• Jenna Magan
  Partner and Co-Head of Orrick Public Finance
  Orrick, Herrington & Sutcliffe LLP
• Katherine Kirchhoff
  Managing Director
  Cain Brothers