When the average price per bed for skilled nursing facilities drops, the consistency in that drop is unparalleled.
Here is something to ponder. We know that after a nice five-year run-up, the average price paid per bed in the skilled nursing market dropped by 18% last year, according to our new statistics.
That was obviously a significant plunge, especially since the average had doubled in the previous five years. So, I decided to go back and see what happened in other years since 2000 when there was a drop.
It turns out there were four years when there was a price drop of any significance. These included 2003, 2008, 2011 and 2017. What is weird is that the decline in each of those four years was 18%. Each time. What I can’t figure out is whether that is pure coincidence, or if there is some reason for that same drop, every time over a nearly 20-year period.
On the flip side, the recovery the year following each of these price drops ranged from a 41% increase in the average price per bed, to an 18% increase. No kidding. Hmmm.