We are in the middle of compiling our 2023 M&A statistics for the soon-to-be-released 29th Edition of The Senior Care Acquisition Report, and the difficult year that was 2023 is coming clearer into focus, at least from a valuation perspective. We’ll preview the skilled nursing market first, which remained relatively strong despite the numerous headwinds facing the sector. On the other hand, some of the tailwinds like rising reimbursement rates, falling supply of licensed beds and revenues from related ancillary businesses have helped prop up valuations.

We heard consistently throughout 2023 that values for SNFs had dropped between 10-15% from their peak around 2021 and early 2022, BUT they remained above pre-pandemic values. Indeed, our figures confirm that, with the average price per bed dropping 14.5% from $114,200 in 2022 to $97,700 in 2023. And that average is 5% higher than the pre-pandemic average of $93,000 per bed in 2019. So, there you go.

We’ll have a more detailed examination of the 2023 M&A market in the Report, with pricing stats on stabilized versus non-stabilized SNFs, age of facility and, of course, the whole seniors housing market too. And our webinar on February 22nd will dive deeper into the numbers, along with expert commentary from active dealmakers in the industry. So, stay tuned.