Record Skilled Nursing Facility and Assisted Living Facility Prices in 2016
The average skilled nursing facility price per bed set a record for the fourth year in a row, and the average assisted living facility price per unit set a record for the third straight year. What can I say, other than I am a bit astounded? We have tallied the results of the seniors housing and care M&A market for 2016, and there were a few records set, again. First of all, as I alluded to last week, the skilled nursing facility market set a record for the fourth straight year, with the average price reaching $99,200 per bed, a 15% increase over the previous record set in 2015. Why such an increase? A record number of skilled nursing facilities that sold for more than $100,000 per bed.... Read More »
Another Record Year for Skilled Nursing Facility Prices
At the ASHA annual meeting, where they are not talking about record skilled nursing facility prices. Ok, so here I am at the conclusion of the annual ASHA meeting in California, where we are not talking about record skilled nursing facility prices. This is a forum where all the major leaders in the seniors housing sector get together in a more informal setting and see what is going on in the their industry. But I am not going to talk about seniors housing today. I am going to talk about skilled nursing. We are wrapping up our analysis on the 2016 M&A market, and we may have a few surprises for people, but mostly in the skilled nursing side of the business. As you may know, skilled... Read More »
Medicaid Block Grants Coming Soon
Many skilled nursing operators will not like the aspect of repeal and replace that could introduce Medicaid block grants. The prospect of Medicaid block grants has been lurking in the background for many years, a few decades perhaps. With the new Trump administration now installed, block grants of Medicaid funds to each state seem to be on the front burner as part of the repeal and replace of the ACA. Block grants would be just that, a fixed pool of money from the federal government that each state would decide how to spend on its Medicaid beneficiaries. Many skilled nursing operators have feared that prospect, because they fear they will be the last ones to be paid. And they may be right,... Read More »
Senior Care M&A Results For 2016
M&A activity in seniors housing and care in 2016 nearly matched that of 2015. Our preliminary results are in, and in the senior housing and care market, 2016 looked very similar to 2015. The dollar value of publicly announced senior care M&A transactions was $14.4 billion last year, just edging out 2015’s $14.2 billion. The number of deals, however, declined by 6%, falling from 359 in 2015 to 337 in 2016. This latter number may rise as a few more disclosed deals are discovered, but it still ranks as the second most active year ever. The dollar total for the fourth quarter of 2016 represented 45% of the year’s total, as a few large transactions came in, something that was in short... Read More »
Assisted Living Occupancy Woes….Again
According to NIC data, assisted living occupancy dropped in the fourth quarter, which was not a good way to end the year. I don’t like to start the new year off with an “I told you so,” but I will. Fourth quarter occupancy trends were just released by NIC, and let’s just say they were disappointing. Surprising? No, but disappointing? Yes. The fourth quarter is usually looked upon as a solid quarter, with occupancy increases that are necessary to fend off declines in census from what can be bad flu seasons in the first quarter. Until recently, some providers were denying that the jump in development was impacting their census. But privately, we knew there was a different story, even with... Read More »Schedule a demo
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