Healthcare operators are under financial pressure due to lack of staff, lack of storage and rising costs. “So we are seeing that a lot of operators and investors are going more from care to senior living and assisted living,” said Savills’ associate director, operational capital markets – healthcare, Max Eiting.
“We see opportunities in the value-add sector. Manage to ESG is a big topic here,” he continued.
However, he stated that there needs to be a change at the political level so that operators are no longer under pressure due to the staff shortages. Furthermore, negotiation and renegotiation of costs with long-term care insurers takes too long. “That’s a huge problem,” Eiting commented.
“In Germany we have we have 16 federal states with 16 federal laws regarding care homes. We have some elections so maybe there will be a change in some federal states. But we will see that it’s not a federal state topic. It needs to be discussed in Berlin too and we hope that that will happen soon.
Author: Paul Strohm