The average sales price per bed at skilled nursing facilities averaged $78,500 in the four quarters ending Sept. 30. That’s an increase of about $1,000 over the previous year, according to a report published in the fall 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.
The company added that the “future looks reasonably bright for the sector.”
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.
From the December 2019 Issue of McKnight's Long-Term Care News
