With five qualified care properties acquired this month and two more due to come on board in August, Indiana operator Majestic Care is definitely in growth mode.
The operator continues to look for various ways to serve its core Midwestern market while expanding into other geographic areas, said Majestic CEO Bernie McGuinness, including expanding to the Southeast.
“We’re looking at a regional approach where we can find a cluster of buildings in another state or market, or offer that regional support even though we can [continue to] are based in Westfield, Indiana, ”said McGuinness.
July additions include three facilities in Indiana and two in Michigan, with David Marx, CEO of Marx Development Group, as purchaser; August facilities are all in Indiana, McGuinness said. Majestic told SNN it preferred not to disclose the purchase price for these transactions.
Upon completion of the acquisition in August, Majestic will own and operate 21 SNSFs and five assisted living facilities in Ohio, Indiana and Michigan. The number of employees in the group has grown from four to over 50 since it was founded in June 2018; McGuinness believes that number will remain stable for the remainder of the year.
The pandemic has changed the types of deals McGuinness sees in the real estate market.
It is more difficult to predict exactly how a potential acquisition will develop when the workload is still recovering and the industry is grappling with a changing job market, said McGuinness, citing an increase in recruitment activity at SNFs.
“Understanding the long-term impact of the labor market, and if it does recover with a few more frontline nurse applicants, evaluating these opportunities is … quite a challenge emerging from the pandemic,” noted McGuinness.
Localized health care
Majestic works with local teams of nurses to manage care and regional vice presidents serve as “local boots,” said McGuinness.
It is hyperlocalized health care, a point Bill Kauffman emphasized in an interview with SNN; Kauffman is a Senior Principal at the National Investment Center for Seniors Housing & Care (NIC).
Operators should be aware of what health networks are in a given location, as Kauffman noted in the Q&A, and how widespread managed care is when there are responsible care organizations or nearby institutional special needs plans (I-SNPs ) operators are widespread.
Kauffman said a successful operator could use these factors to better meet community demand.
McGuinness agrees that skilled nursing is a “very local business”.
“They know the local survey topics and some of the nuances that come up in different states. You know the different reimbursement systems, ”remarked McGuinness. “As we grow, we want to be strategic and find cluster opportunities in these different markets as we expand outside of the Midwest.”
Extension of continuum maintenance
The expansion of the service lines and the expansion of the care continuum are also part of Majestic’s growth strategy; The group plans to expand its dialysis and memory care services and add a senior living room and ventilator department to its facilities.
The ink isn’t even dry on Majestic’s Home Health deal – the operator acquired what will soon be called Majestic Home Health Care and Operation in Indiana about a month ago.
The Majestic team is not free to discuss which home health company this is, McGuinness said.
The board also discussed possibilities in palliative medicine and in the hospice.
“Most of our growth is in skilled nursing,” added McGuinness. “As a younger company, we continue to look at different service lines, but keep our core business in the area of qualified care. That is our expertise. “