NHC Completes Acquisition of White Oak Senior Living Portfolio

Rhea-AI Summary

National Healthcare (NYSE American: NHC) has completed the acquisition of the White Oak Senior Living portfolio, expanding its operations in North and South Carolina. The acquisition includes 15 skilled nursing facilities, with three continuing care retirement centers in North Carolina and one facility in South Carolina that includes assisted and independent living units. This strategic move adds 1,928 skilled nursing beds, 48 assisted living units, and 302 independent living units to NHC's operations.

The acquisition marks NHC's entry into North Carolina and strengthens its presence in South Carolina, where it already operates 13 skilled nursing facilities and 5 assisted living communities. NHC CEO Steve Flatt expects the acquisition to be accretive to earnings and create long-term operational efficiencies and synergies within NHC's networks.

Positive

• Expansion into North Carolina market
• Increased presence in South Carolina
• Addition of 1,928 skilled nursing beds, 48 assisted living units, and 302 independent living units
• Acquisition expected to be accretive to earnings
• Potential for operational efficiencies and synergies

Negative

• None.

Insights

Financial Analyst

This acquisition marks a significant expansion for NHC, adding 1,928 skilled nursing beds, 48 assisted living units and 302 independent living units to its portfolio. The move into North Carolina and expansion in South Carolina should diversify NHC's revenue streams and potentially increase market share in the senior care sector.

While specific financial details aren't provided, the expectation that this acquisition will be accretive to earnings is a positive sign for investors. The mention of operational efficiencies and synergies suggests potential cost savings and improved margins in the long term. However, investors should monitor integration costs and any potential short-term impact on the balance sheet.

Healthcare Industry Expert

This acquisition aligns with the ongoing consolidation trend in the healthcare industry, particularly in senior care. By acquiring White Oak's portfolio, NHC is not only expanding its geographical footprint but also diversifying its service offerings. The inclusion of continuing care retirement centers and a long-term care pharmacy in the acquisition demonstrates a strategic approach to vertical integration.

The move could potentially strengthen NHC's competitive position in the Southeast region. However, investors should be aware of the regulatory challenges and operational complexities that come with managing a larger, more diverse portfolio of healthcare facilities across multiple states.

Market Research Analyst

The senior care market is experiencing growing demand due to an aging population, making this acquisition timely. NHC's expansion into North Carolina and strengthening its presence in South Carolina positions the company to capitalize on demographic trends in these states.

Investors should note the potential for increased revenue stability through geographical diversification. However, it's important to monitor how NHC manages the integration of White Oak's culture and operations, as maintaining service quality across a larger portfolio can be challenging. The success of this acquisition may hinge on NHC's ability to leverage economies of scale while preserving the quality of care that both companies prioritize.

MURFREESBORO, Tenn.--(BUSINESS WIRE)-- National Healthcare Corporation (NYSE American: NHC), a national leader in senior care, announced today that it has completed the acquisition of the White Oak Senior Living (“White Oak”) portfolio, operating in North Carolina and South Carolina, including its long-term care pharmacy. White Oak’s portfolio consists of six skilled nursing facilities in North Carolina, three of which are continuing care retirement centers, including one leased facility. In South Carolina, the portfolio consists of nine skilled nursing facilities, one of which also includes assisted and independent living units.

“White Oak has been a premier skilled nursing and senior living provider in North and South Carolina for many years. We are honored to acquire and operate the White Oak brand and continue to provide critical services to their patients and families,” said Steve Flatt, Chief Executive Officer of NHC.

The acquisition represents both an expansion of NHC’s operations into a new state and a strategic advancement of its growth in its existing operational footprint. Prior to this acquisition, NHC operated thirteen skilled nursing facilities and five assisted living communities in South Carolina, as well as a long-term care pharmacy. The White Oak acquisition will add 1,928 skilled nursing beds, 48 assisted living units, and 302 independent living units to NHC’s current operations.

“We are excited to make a strategic move into North Carolina and expand our offerings in South Carolina. We expect this acquisition to be accretive to NHC’s earnings and create several long-term operational efficiencies and synergies inside our operating networks. Above all, the cultures at White Oak and NHC both value excellent care as the highest priority. That’s what made this opportunity so attractive,” Mr. Flatt continued.

About National HealthCare Corporation

NHC affiliates operate for themselves and third parties 80 skilled nursing facilities with 10,349 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 778 units, three behavioral health hospitals, 34 homecare agencies, and 30 hospice agencies. NHC’s other services include Alzheimer’s and memory care units, pharmacy services, a rehabilitation services company, and providing management and accounting services to third party post-acute operators. Other information about the company can be found on our web site at www.nhccare.com.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the Securities Exchange Commission (“SEC”), including Forms 8-K, 10-Q and 10-K, and include, among others, the following: the ability to integrate the White Oak operations into its operating networks in a timely manner, if at all; liabilities and other claims asserted against us and patient care liabilities, as well as the resolution of current litigation; availability of insurance and assets for indemnification; national and local economic conditions; including their effect on the availability and cost of labor, utilities and materials; the effect of government regulations and changes in regulations governing the healthcare industry, including our compliance with such regulations; changes in Medicare and Medicaid payment levels and methodologies and the application of such methodologies by the government and its fiscal intermediaries, the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations; and other factors referenced or incorporated by reference in NHC’s SEC filings. The risks included here are not exhaustive. All forward-looking statements represent NHC’s best judgment as of the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806507547/en/

Casey Reese

615-571-2992 | media@nhccare.com

Source: National Healthcare Corporation

FAQ

What is the White Oak Senior Living portfolio that NHC acquired?

The White Oak Senior Living portfolio consists of 15 skilled nursing facilities in North and South Carolina, including three continuing care retirement centers in North Carolina and one facility in South Carolina with assisted and independent living units.

How many new beds and units did NHC gain from the White Oak acquisition?

NHC gained 1,928 skilled nursing beds, 48 assisted living units, and 302 independent living units from the White Oak acquisition.

How does the White Oak acquisition affect NHC's market presence?

The acquisition expands NHC's operations into North Carolina for the first time and strengthens its presence in South Carolina, where it already operates 13 skilled nursing facilities and 5 assisted living communities.

What financial impact does NHC expect from the White Oak acquisition?

NHC expects the acquisition to be accretive to earnings and create long-term operational efficiencies and synergies within its operating networks.