Skilled nursing bed prices reached $93,000 per bed in 2019. It’s just the second time bed price values have reached the $90,000 threshold, according to new data from Irving Levin Associates. 

Last year, the average SNF bed price clocked in at about $77,000.

The average cap rate also increased by 10 basis points to 12.1% in 2019. 

“Leading up to the implementation of the Patient Driven Payment Model on October 1, 2019, the skilled nursing M&A market was particularly active as buyers worked to build their portfolios to maximize what they saw as a revenue windfall from PDPM,” Ben Swett, the editor for the firm’s 25th edition of its Senior Care Acquisition Report, said in a release.

Operators could also see a change in bed price values following the coronavirus outbreak in the United States, Swett noted. 

“Right now, these facilities are preoccupied with caring for a high-acuity, medically-complex and vulnerable population during the COVID-19 pandemic,” he said. 

“Skilled nursing facilities may be called upon to take on a surplus of patients from overburdened hospitals, so we will see how they react to the crisis and fit into the acute care and post-acute care continuum going forward,” he added.