The Affordable Care Act (ACA) continues to prompt consolidation in the long term care industry as Genesis Healthcare and Skilled Healthcare, Inc. will merge to create a 500+ facility long term and post acute care entity. The firms cited the fact the ACA is further transforming federal reimbursement to a “more outcomes based and pay for performance based.”
Mergers of this nature are inevitable and will continue as the fragmented LTC industry faces interminable federal and state payment pressure, and as smaller ‘mom and pop’ facilities shutter in the face of larger, more cost-efficient providers.
Gordon Hensley