Nursing-home shares dip on Ford criticism
Raising pressure on sector, premier warns he’ll pull licences of several facilities under review
Shares of Canadian nursinghome operators dropped again Thursday as the Ontario government raises the pressure on the sector to change its ways after COVID-19 outbreaks.
Ontario Premier Doug Ford resumed his criticism of longterm care homes, threatening to pull licences of several facilities that are under review by the province, while urging investors to ask hard questions.
“I would expect, as a shareholder, to start holding the CEO and chair accountable,” Ford said at a news conference in Toronto. “Because guess what? We’re going to hold them accountable.” Ford’s government said this week it’s taking over temporary management of five eldercare homes in the wake of COVID-19 outbreaks. Two of them are run by Markhambased Sienna Senior Living Inc., which fell another 6.8 per cent Thursday and has lost almost 10 per cent this week.
Extendicare Inc. retreated about one per cent. Chartwell Retirement Residences, which says it is Canada’s largest owner and operator of seniors residences, fell 3.2 per cent.
At least one shareholder of Sienna isn’t shying away from holding the stock and says the crisis could drive mergers in the sector. “You’re likely going to get a more consolidated group of players” that can work more closely with government and handle increased compliance standards, Dean Orrico, chief investment officer at Middlefield Group Inc., said on BNN Bloomberg Television.
Care homes will have stronger measures in place to manage outbreaks in the future, he said. Ford vowed this week to hold an independent inquiry into the province’s long-termcare system after a Canadian military report outlined poor treatment of residents. He didn’t rule out taking over operation of the system.
His government has also come under fire itself by the main opposition parties for not moving swiftly enough to contain the outbreaks.
Ford has said he would appear as a witness himself at any inquiry.