Omega Healthcare Investors, Inc. (NYSE:OHI) Q2 2023 Earnings Call Transcript

Megan Krull: We haven’t just because it’s way too soon, given that nothing has come out yet and we think — look, you’re probably — if this comes out from post rule tomorrow, you probably wouldn’t have it come into place next year, right? And so, but, we are hopeful to get pushed out until the staffing shortages improved. But there is really no good way to drill down into that. [indiscernible] has put out something like 4.1 it would cost the industry something like $10 billion. But to get there, I mean, it’s really difficult to figure out how that would affect the operators on a daily basis. They can’t do something so draconian that it puts everybody out of business.

Operator: And our next question comes from Wes Gollady from Baird. Go ahead, Wes.

Wes Golladay: A quick question on the staffing. I guess what is the dynamic there? Is there — are you lower turnover? Or is there still a lot of churn, a lot of new hires and a lot of people quitting?

Megan Krull: I think folks are doing a better job at lowering the turnover certainly and finding folks out there. I think the turnover is getting better and I think there’s also some operators who’ve been successful with bringing folks in from international areas to help bolster that as well.

Wes Gollady: And then you mentioned the $93 million gain. Can you remind us like what is the plan, I guess from a financing perspective, is there a certain time period where you, if you were to roll that gain into a new offering, it could reduce your interest expense and maybe the accounting behind that?

Bob Stephenson: Yes. Basically, we have mid-2025 to roll that in a debt offering of at least five years or longer, and then we’ll amortize it over the new offering from a P&L standpoint.

Operator: Thank you. That is the last question for today. At this time, I would like to turn the call back over to Taylor Pickett for any closing remarks.

Taylor Pickett: Thanks everybody for joining us today. As always, we’re available for any follow-up questions. Have a great day.

Operator: Thank you. This does conclude today’s conference. We thank your participation. You may disconnect your lines at this time, and have a wonderful day.