Our Latest Aquisition
We are pleased and excited to welcome Esther's Place to our growing family of HealthyCare facilities. Integrity-Esther's Place consists of 4 facilities in Baltimore, each of which provides quality care, celebrates personal dignity and encourages independence while engaging family and friends in a comfortable and social environment.
Esther's Place at Pinewood
Esther's Place at the Park
Summary and Current Events Update
Covid-19… We anticipated the impact of this in January. February and March we carefully monitored each of the 5 States we have facilities in to strictly adhere to the respective rules and guidelines. By exercising our Partners’ due diligence and efforts, we have held our Portfolio erosion to less than 3% of occupancy during the past 3 months, and still comfortably in excess of the occupancy required by Leumi. Facility pipelines are still effectively in place, but not much in use as sons and daughters have not wanted to move Mom or Dad into any facility with the serious issues our fellow caregivers in SNFs have endured. Our compliments to Leslie in Baltimore (4 facilities on-boarded late last Fall) in so professionally addressing her Covid issues, and taking decisive corrective action quickly. She and Beverly are both RNs, and maintain close ties with John’s Hopkins locally, where they both worked some 20 years ago. Her actions prevented a much more serious infection, and she is now back in the saddle after her own quarantine. THANKS LESLIE..!! Now, to hit the ground running as our respective States begin rollback of their restrictions, gain more market share, and firmly reestablish Trust with our local communities, the Key is………
Testing… An exhaustive study of both U.S. and European tests under development, roughly 17 reviewed, boils down to 3:
Abbot Corporation’s ID NOW, based on a molecular point-of-care platform (which looks like a galley toaster off the Starship USS Enterprise), and yields results in 3 minutes for a positive reading, 13 minutes for a negative reading, has established a false/positive/negative rating of .02. Since it is molecular based, the machine has the capability of reading results from patients who may have very little virus in their bodies, and actually be asymptomatic. We are on Abbot’s HealthCare list for order placement and delivery in a 6 – 8 week period. Unit cost is around $4,800 each. This is the same equipment used at the White House, and gives us the option of checking every employee as they come to work, and each resident as needed, on site.
In about 10 months, instead of the current nasopharyngeal swab (similar to having your brain scrapped through your nose), and having days to wait, both Rutgers and Darwin Biosciences (founded by professors from the University of Colorado) are finalizing saliva tests, one which will be a ‘spit in the tube’ type, and another a ‘spit on the stick’ type which displays similar to a home pregnancy test(+ -). Yale School of Public Health has already verified the effectiveness of spit vs. nasal. In a controlled study, both methods were 100% effective, but the saliva tests detected 2 subjects who were asymptomatic and not picked up by the swab. They were quarantined.
Israel's Ben-Gurion University of the Negev last week announced a 96% efficient 60 second Covid-19 test. This involves blowing into a cigarette sized unit with a microchip that yields the result. This does not require a lab environment so it can be deployed at airports, stadiums, and healthcare facilities. The test will be available in a matter of weeks at an initial cost of $50 per test.
By adopting a strong and continuing Testing program at each facility, and advertising this, we show local communities Integrity is operating Safe facilities, and that we can be Trusted with their loved ones. And this brings us to:
Growth… We currently have $27M (conservative) in facilities awaiting patiently the relaxing of various States’ restrictions. These include our Alabama facilities we came within 2 days of closing before the Alabama shutdown. A 55 bed facility just South of Ocala, a 40 bed facility in North Carolina, and a complex of 2 licensed facilities in Jacksonville, Florida, 167 beds. Alabama has been appraised, Ocala and N.C. are ready for third parties, and the Jacksonville complex will be fully ready for third parties as soon as Florida’s restrictions lift in July. This complex just completed a National Guard visit, with tests all around, and concluded with NO INFECTIONS this past Tuesday. All these bring substantial cash flow to the Company, and some welcome fresh faces to our Family.
Last October, as Top and Jonathan were focused on our Portfolio refinance, I was in left field working with Leumi in New York on a Syndication Line ($50M) for us to use this year. Five banks have agreed to be on board, and preliminary documents are being readied in Birmingham. This line represents our planned and intended growth for the next 8 months. As always, Integrity carrying through is critical to both our Banking relationship, and our credibility with our Partners and the industry, where Integrity now has a ‘can do’ reputation. We are counting on our Board to help us ease this busy timeline.
After 6 months of hard work, Top and Jonathan pulled off our re-finance with aplomb, like it was a daily occurrence. Much lower rate, 5 year term instead of 3, more favorable terms in general, and a 15% Limited Recourse “burn down” based on NOI. We are most pleased that our Bank, Leumi, won the refinance.