Medicare Advantage Plans Drive Growth for Healthcare in 2025

Medicare Advantage Plans are playing a big role in the growth of American Healthcare REIT (AHR) and its partner, Trilogy Senior Living. In the first quarter of 2025, AHR saw strong growth thanks to its partnership with Trilogy, which showed big improvements in nursing home occupancy and Medicare Advantage penetration.

Trilogy’s Success with Medicare Advantage Plans

Trilogy Senior Living, a key part of AHR's portfolio, achieved high ratings in the Five-Star Quality Rating System. This helped them build strong relationships with Medicare Advantage plans, which are private health plans that work with Medicare. Because of these high ratings, Medicare Advantage plans were eager to partner with Trilogy, offering better rates and more patient referrals.

Gabe Willhite, COO of AHR, mentioned that these partnerships are expanding fast. "We were able to grow our relationships with Medicare Advantage plans at attractive rates," he said. This allows more residents to access Trilogy’s skilled nursing services, boosting occupancy and revenue.

How Medicare Advantage Plans Help Trilogy Grow

Medicare Advantage plans are different from regular Medicare. They often offer extra benefits like dental, vision, and wellness programs. Trilogy’s strong performance made them attractive to these plans, leading to:

• Better Reimbursement Rates: Higher payments for services, which support better care.

• More Patient Access: More people can stay at Trilogy facilities, increasing occupancy.

• Improved Quality Mix: Trilogy can now rely more on Medicare Advantage residents instead of Medicaid, which pays less.

Willhite said that Medicare Advantage plans are starting to prioritize quality. This shift means Trilogy, with its high ratings, is well-positioned to grow even more. Over time, they expect to have fewer Medicaid patients and more Medicare Advantage and Medicare residents, who pay better rates.

American Healthcare REIT’s Strong Growth

American Healthcare REIT, which owns Trilogy and other properties, is seeing big growth thanks to Medicare Advantage. In the first quarter of 2025, AHR reported:

• 15.1% Growth in Net Operating Income (NOI) compared to last year.

• $540.6 Million in Revenue, up 8.2% from the previous year.

• $300 million in New Acquisitions planned for 2025, with more projects already started.

AHR’s President and CEO, Danny Prosky, said the company is expecting more growth this year. "We have already seen a sharp uptick in move-ins," he said. This growth is driven by Medicare Advantage plans that bring more patients into Trilogy’s skilled nursing facilities.

Future Plans for Trilogy and AHR

To keep growing, AHR is planning to invest even more in skilled nursing and senior housing. They want to work with local market specialists who know how to deliver high-quality care. This strategy includes:

• Launching new Trilogy projects that are on schedule and within budget.

• Selling off low-growth properties to reinvest in stronger markets.

• Focusing on value-based care (VBC) programs, especially in states like Ohio.

The Impact of Medicare Advantage on Senior Care

The success of Medicare Advantage plans is not just good for AHR and Trilogy; it’s also good for residents. These plans allow seniors to access better care with more services. For providers like Trilogy, these plans mean higher payments and more stability. As more seniors choose Medicare Advantage, companies that can meet high standards, like Trilogy, are set to grow.

Medicare Advantage is changing how senior care is managed, making it more about quality and less about just filling beds. With AHR's strong investment strategy and Trilogy's high ratings, they are positioned to keep expanding in this new healthcare landscape.