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Five Star Quality Care

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About Five Star Quality Care

Hoping to capitalize on the legacy and reputation of "Five Star" service, Five Star Quality Care is out to become the long-term care industry's premier provider. Operating in about 30 states, Five Star Quality Care runs about 245 senior living facilities with around 27,000 living units. The firm's facilities include independent living apartments, assisted – more... living suites, and nursing homes. Services include rehabilitation, occupational therapy, nutritional support, and social and recreational services, as well as skilled nursing care. In addition, Five Star Quality Care operates two rehabilitation hospitals, as well as more than a dozen affiliated rehabilitation clinics.


Most of the company's senior living facilities are leased from Senior Housing Properties Trust, which founded Five Star Quality Care in 2000 and spun off the housing operator the following year. The firm has since increased its senior living operations by entering additional leases with Senior Housing (and other real estate firms), as well as by making occasional small facility acquisitions. 

Financial Analysis

Five Star Quality Care's revenues have been on the rise over the last five years, including an increase of about 6% in 2011 to some $1.3 billion due to strong results in both the senior living and the rehabilitation segments. The senior living segment benefitted from the addition of new facilities and from increased resident fees, while the rehabilitation segment gained on increased Medicare reimbursements and higher occupancy rates. As a result of rising revenues, as well as a tax benefit of $50 million, net income tripled to some $64 million that year.


By operating facilities that provide high-quality care and services, Five Star Quality Care aims to attract customers on the upper-end of the income scale who pay with private resources (about 70% of its current payer base), thus giving the company an advantage over competitors who are heavily dependent on Medicare/Medicaid reimbursements.

In addition, Five Star Quality Care seeks to increase profitability at its existing facilities by increasing utilization and occupancy rates (which have suffered some due to economic conditions) through expanded service offerings and facility and technological upgrades. Five Star is counting on a projected spike in demand for the type of services it offers as the US elderly population grows much faster than the general population in the coming years.

To focus on its residential facilities, in 2012 the company sold its pharmacy business, which operated eight institutional pharmacies serving senior living centers in a dozen states, to Omnicare in a deal worth some $40 million. The firm had already downsized its pharmacy operations in previous years.

Mergers and Acquisitions

During 2011, the company acquired seven senior living communities for some $148 million, adding some 850 units in Arizona and Indiana. Five Star Quality Care also enters new lease agreements for facilities, and in recent years it has entered facility management agreements with third parties.


Senior Housing Properties Trust (owner of many of the properties that Five Star Quality Care operations) owns about 9% of the company's shares. – less

Five Star Quality Care Employer Reviews

Nursing Aide (Former Employee), San Antonio, TXJuly 19, 2014
kitchen (Former Employee), chevy chaseJuly 4, 2014
Dietary server (Current Employee), Pompano Beach, FLJune 5, 2014
Med Tech (Former Employee), GeorgiaMay 17, 2014
Utility Worker and Server (Former Employee), cherry hillMay 2, 2014

Five Star Quality Care Photos

Working at Five Star Quality Care