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In recent years, deep-pocketed companies, mainly REITs, have put significant capital behind reshaping how senior living owners and operators collaborate. One such company making waves is SPHERE (Strategic Public Health Equities and Real Estate) Investments. Founded out of Flagler Healthcare Investments, SPHERE has amassed a portfolio of medical office buildings, outpatient surgery centers, and long-term acute care hospitals in 15 states. With plans to invest $300 million in senior living operators and properties in 2024, SPHERE is aiming to revolutionize the industry.
Founder and CEO Didier Choukroun has a grand vision of introducing a new business model that transforms the relationship between capital and operations. SPHERE is seeking to support like-minded operating companies with resources such as a tech and data suite, while also looking for properties that combine independent living, assisted living, and memory care.
Choukroun’s motivation stems from a critical view of the senior living industry, where both owners and operators struggle to achieve acceptable profitability despite strong demand. He believes the traditional business model needs reevaluation to incentivize successful operators and drive better outcomes.
SPHERE’s approach aligns with other industry players like Ventas and Welltower, who are also focusing on building partnerships with strong operators and providing tools for success. In this week’s exclusive SHN+ Update, the article analyzes SPHERE’s strategy and outlines key takeaways, including its vision for reshaping the senior living business model, the role of management fees in driving change, and its commitment to driving the wellness trend in senior living.
Choukroun’s plan involves investing in operators, providing access to tech platforms, and ultimately increasing profitability and efficiency. By forging partnerships with operators, SPHERE aims to enhance outcomes, diversify revenue sources, and lead the industry towards a focus on social determinants of health and wellness.
Ultimately, SPHERE’s commitment to public health advancements and social determinants aligns with a growing trend in the industry towards holistic wellness approaches. By investing heavily in senior living, SPHERE aims to improve community health and well-being while driving the evolution of the business model towards a more sustainable and balanced future.
