Seniors Housing Adapting to Health Crisis; Sector Implements Numerous Changes to Manage Pandemic
Long-term outlook remains positive. As the nation advances through the health crisis and states outline plans to reopen the economy, the seniors housing sector continues to face near-term uncertainty. Operators are navigating a new path forward, prioritizing frontline healthcare workers’ needs in order to keep seniors safe and healthy, while still facing challenges surrounding labor and supply shortages. The financial impact will be deep as expenses surge and revenue falls, potentially driving greater consolidation in the industry over the coming years. Larger operators that can leverage economies of scale are more favorably positioned to manage increased equipment, cleaning and operating costs. While the long-term ramifications of COVID-19 remain unclear, providers will adopt a new normal moving forward, enhancing staffing and infection control protocols, boosting inventories of PPE and altering isolation practices. The broader outlook for the industry remains positive with a demographic wave on the horizon that ensures strong demand for the needs-based asset class. Historically the sector has demonstrated resiliency through prior shocks and continues to il-lustrate safety for the elderly during a major crisis.