King Cash

When it comes to value, it all comes down to cash flow. For the fourth year in a row, according to the 21^st Edition of The Senior Care Acquisition Report, there has been a record level of net operating income per bed purchased in the skilled nursing market. This has been the primary driver of the steady rise in the average price per bed since 2011. At the last market peak in 2007, the average NOI per bed sold was $6,700 and the average price per bed was $55,200. From 2007 until 2015, the average NOI grew to $9,600 per bed, for an increase of 43%, while the average price per bed increased to $85,900, representing a 55% increase. Most nursing facilities have been trying to increase their Medicare patient days for the past several years, and Medicare-oriented facilities have also been the most sought after in the acquisition market, both of which have resulted in higher average net operating income per bed for the facilities sold.