Private Pay vs. Medicare

Wally Smith:
Good deal. I know you focus. It’s all a big selling points, private pay, not Medicare reimbursement. Is that a key box that you guys have to check on a property?

Patrick Lam:
I think it’s not always. Oh, sorry.

Wally Smith:
Yeah.

Patrick Lam:
Go ahead. Sorry.

Mike Jones:
Sorry, Patrick.

Patrick Lam:
Go ahead, Mike.

Mike Jones:
Get about this stuff.

Patrick Lam:
No, no, please.

Mike Jones:
Yeah. So Medicare, we don’t deal with Medicare reimbursement at all. That’s solely a function in skilled nursing, and Medicare is constantly changing. I underwrote quite a few skilled nursing transactions in my time in the finance world, and I’m glad not to do that anymore. They changed. They completely change the system, it seems, about once every five years.

Wally Smith:
Does Medicare come to play with memory care?

Mike Jones:
We deal with Medicaid. On the state level, we deal with Medicaid reimbursement in some of our properties. And so we’re very selective when it comes to properties that accept Medicaid. It’s a state by state basis where the state budgets are sound and they have a previous Medicaid reimbursement program.