Skilled nursing facilities’ transactions declined in 2022 amid higher pricing per bed, according to the National Investment Center for Seniors Housing & Care.
“Fewer deals are getting done given the tightness of the lending market because of higher interest rates,” NIC Senior Principal Bill Kauffman wrote in a blog post. “The deals that do close at higher prices have a significant impact on average prices.”
As McKnight’s Long-Term Care News previously reported, nursing care bed prices in acquisitions have risen 21% from their pre-pandemic levels. The average price per bed in acquisitions in the third quarter of 2022 was $106,340, up from $95,657 during the same quarter in 2021, according to Kauffman. That’s a year-over-year increase of 11%.
“There’s some price discovery going on,” Kauffman told McKnight’s in late December. “A seller was looking at these historical prices, especially in the last couple of years. Even through COVID, those price-per-bed acquisitions were relatively high. Some of these sellers going into 2023 might have thought that those prices were still relevant, and I would argue that there needs to be some price adjustment … especially in light of not just the challenges in the skilled nursing industry from a fundamental operational perspective, but also now with interest rates.”
Read more McKnight’s Business Daily articles here.
