You can bet skilled nursing reimbursement will be one area the federal government will look at to reduce the national deficit. They are looking into lowering the Medicaid provider tax threshold. This is referred to as the "bed tax". They want to limit the threshold to 3.5% from 6.0%. Doing this would limit the states' ability to fund Medicaid dollars through matching federal funds. Right now, operators lose money on Medicaid residents. The government is thinking it will save close to $22 billion dollars over 7 years by reforming the bed tax. What do you think will happen to values if this happens? What do you think will happen to nursing home owners and those providing services? Better yet, what do you think will happen to the resident's level of care?
Showing posts with label Medicaid cuts. Show all posts
Showing posts with label Medicaid cuts. Show all posts
Monday, February 18, 2013
Friday, April 8, 2011
Jeff Binder and Ryan Saul Team Up to Sell Kentucky SNF
Ryan Saul and Jeff Binder sold an 118 bed Skilled Nursing Facility in Kentucky. Built in 1976, the one story facility is comprised of approximately 36,660 square feet on 2.57 acres. At the time of the sale, the census was 79%. The property had recently been removed from the Special Focus list and the performance had steadily improved through 2010. The Seller, a regional company, sold to focus on their assisted living assets. The Buyer had previously owned/operated in Kentucky but had exited the market in 2006. A local community bank provided the financing. The sales price was $7,800,000 ($66,102/bed). Senior Living Investment Brokerage, Inc. was able to confidentially procure multiple offers from operators throughout the country. For additional information contact Jeff at 314/961-0070 or Ryan at 630/858-2501.
Tuesday, April 5, 2011
Payor Mix is the Key!
The recession has caused state tax receipts to decline dramatically, which has forced many states to face large budget gaps. Medicaid has become the largest line-item on many states' budgets. This has caused many states to look towards Medicaid reimbursement as an area for cuts to close that gap.
What does this mean to the senior housing industry? As states contemplate cuts large and small (up to 34% has been rumored in certain states), we believe that there will be a flood of capital into Skilled Nursing Facilities that rely largely on Medicare and Private Pay residents. We also believe that there will be more of an interest in Private Pay Assisted Living Facilities as these Medicaid cuts are finalized.
How is the Senior Housing M&A market currently? We believe that there is more equity and debt financing available in this market than there has been for the past couple years. Public and private REIT's have been sitting on a great deal of capital during the recession and are now looking to deploy that cash into senior housing facilities. Additionally, there are more lending options (i.e. bridge financing, more aggressive conventional lending) for acquirers to take advantage of than there were over the past 24 months.
What should I do to set my facility up for a successful sale at maximum value? The current acquisition market is still very "cap rate driven". It is important to maximize profitability, while maintaining a strong payor mix. Given the current environment, capital is flowing much more aggressively into properties that have a high Private Pay and Medicare census.
How does this impact the potential sale of my facility? If you have an Assisted Living, Independent Living, or Skilled Nursing Facility with a strong payor mix, it is a great time to explore selling your senior housing facility.
Senior Living Investment Brokerage, Inc. sold approximately $300 million in transaction volume in 2010 and $90 million in the first quarter of 2011.
SLIBCO provides non-binding marketing proposals, whether you’re interested in selling soon or are just curious of your facility’s value.
Contact me via email at alley@seniorlivingbrokerage.com
Matthew Alley
Senior Vice President
What does this mean to the senior housing industry? As states contemplate cuts large and small (up to 34% has been rumored in certain states), we believe that there will be a flood of capital into Skilled Nursing Facilities that rely largely on Medicare and Private Pay residents. We also believe that there will be more of an interest in Private Pay Assisted Living Facilities as these Medicaid cuts are finalized.
How is the Senior Housing M&A market currently? We believe that there is more equity and debt financing available in this market than there has been for the past couple years. Public and private REIT's have been sitting on a great deal of capital during the recession and are now looking to deploy that cash into senior housing facilities. Additionally, there are more lending options (i.e. bridge financing, more aggressive conventional lending) for acquirers to take advantage of than there were over the past 24 months.
What should I do to set my facility up for a successful sale at maximum value? The current acquisition market is still very "cap rate driven". It is important to maximize profitability, while maintaining a strong payor mix. Given the current environment, capital is flowing much more aggressively into properties that have a high Private Pay and Medicare census.
How does this impact the potential sale of my facility? If you have an Assisted Living, Independent Living, or Skilled Nursing Facility with a strong payor mix, it is a great time to explore selling your senior housing facility.
Senior Living Investment Brokerage, Inc. sold approximately $300 million in transaction volume in 2010 and $90 million in the first quarter of 2011.
SLIBCO provides non-binding marketing proposals, whether you’re interested in selling soon or are just curious of your facility’s value.
Contact me via email at alley@seniorlivingbrokerage.com
Matthew Alley
Senior Vice President
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