November 19, 2021
Five Star Senior Living Inc. (Nasdaq: FVE) announced that it has successfully completed the transition of operations for 107 senior living communities owned by Diversified Healthcare Trust (Nasdaq: DHC) and has fully exited the skilled nursing business. Five Star continues to manage 120 senior living communities owned by DHC.
Five Star now operates a total of 140 senior living communities, either managed or owned, with approximately 20,000 units, 91% of which are either Independent Living or Assisted Living and the remaining 9% are memory care units, located in 28 states. Five Star’s rehabilitation and wellness services segment, primarily comprised of Ageility, a division of Five Star, now serves approximately 14,600 older adult customers in 223 outpatient clinics across 28 states. Five Star will retain all of the 45 Ageility outpatient clinics located in transitioning communities.
Katherine Potter, President and Chief Executive Officer, made the following statement regarding today’s announcement:
“We have been successful in repositioning our management business to focus on our operational strengths at larger senior living communities and target active, older adult customers by transitioning 107 DHC owned communities to other operators and closing one community and approximately 1,500 skilled nursing facility living units to fully exit the skilled nursing business.”
“In the coming months, we expect to turn our attention to efforts to enhance the resident experience at our communities and develop a cost-efficient and scalable platform to support our operations and drive growth. To further meet the needs of our target customers who are seeking a more independent lifestyle, we expect to continue to diversify our business through ongoing investment in Ageility and by actively pursuing an expansion of our concierge service offerings that will afford our customers the choice and financial flexibility they desire.”
FVE will also support DHC in the closure of one remaining community located in Delaware.