Course Overview

Lending to the Long-Term Care Industry is designed to introduce participants to the various types of senior housing and long-term care available to the elderly and to teach methods for analyzing and lending to assisted living facilities and skilled nursing facilities. Through a mix of lectures, small group activities, and case studies, participants are better prepared to apply the content learned when they return to their jobs.

     

Duration

7.5 hours

Delivery

Instructor-Led Online

Program Level

Intermediate

 

Prerequisites

Participants are expected to have a thorough knowledge of financial accounting, traditional financial statement analysis, and cash flow analysis.

 

 

Who Will Benefit?

Designed for lenders, credit officers, credit analysts, and loan review officers who want to gain knowledge about lending to the senior housing and long-term care industries.

   

Learning Objectives

Upon completion of this course, participants will be able to:

• Understand the overall senior housing industry, including size, composition, and trends with particular emphasis on reimbursement issues such as Medicare and Medicaid.
• Identify the credit needs of assisted living facilities, skilled nursing facilities, and continuing care retirement facilities.
• Understand the credit risks involved in order to structure loans appropriately.

Methodology:

The following cases are described in Lending to the Long-Term Care Industry:

• Residential Care Assisted Living (RCAL) is a general partnership formed five years ago to develop and own assisted living facilities. RCAL currently owns four properties and plans to add two per year for the next five years. RCAL’s properties are upscale in nature, and the residents are 100% private pay. RCAL of South Fork is 18 months old and RCAL of North Bend is 8 months old. South Fork and North Bend each have 48 independent living units designed for single occupancy. The CFO has come back to you with a possible loan deal. The request is for South Fork and North Bend to borrow $7.05 million to refinance $5.55 million in existing debt.
• Community Care Nursing Home (CCNH) is a 200-bed nursing home in a mid-sized city in the Midwest. The home was built 22 years ago. The market is mature, and the state is currently not issuing CON’s for new nursing home beds in the area. Two physicians in the southern part of the state, 150 miles away, have entered into an agreement to purchase the nursing home and its operation. They approach you for a $4.1 million loan to assist in the purchase of CCNH. They have a current appraisal on the home for $5.475 million.