We all know that skilled nursing prices have hit an all-time high, averaging $85,900 per bed in 2015, according to the 21st Edition of The Senior Care Acquisition Report. So what was it about the facilities sold in 2015 that helped drive this price up? For one, the average facility was larger than it has ever been. At 130 beds, the average facility sold in 2015 was four beds larger than the previous record-high, shared in 2012 and 2014 at 126 beds per facility. Why does size matter when it comes to price? Unless it is highly specialized, either with rehab care or skilled Alzheimer’s care, most buyers do not like to invest in nursing facilities that are smaller than 60 beds, and some won’t even consider anything less than 80 beds. Other factors like location and reimbursement environments matter too, but 2015 shows that investors believe bigger is better. Just ask The Donald.
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