Skilled nursing facilities sold on average for $78,500 per bed in the four quarters ending Sept. 30. That’s about a $1,000 increase over the previous year, according to a report published by Irving Levin Associates.
The report notes that the numbers are “remarkable,” given the rising operating costs and labor challenges the sector has faced.
“Of course, there are many variables (labor, drastic reimbursement changes, aging inventory across the industry, etc.), but the regional operators and private equity groups, who have been the most active buyers in the space, clearly have confidence that with the right amount of scale, investment in the properties and payor mix, healthy returns should be generated,” the company noted in a release.
There were a total of 426 publicly announced senior housing and care acquisitions — worth a total of $13.6 billion — in 2018. That’s a 41% increase from 2017, according to the firm.
