Is The SNF Market Bottoming Out?

September 28, 2018, Steve Monroe, Senior Care Investor - On September 27, our Editor Steve Monroe and a panel of experts that included Ryan Chase of Blueprint Healthcare Real Estate Advisors, Eli Kutner of Harborview Capital Partners and Stefan Oh of American Healthcare Investors, debated an important question: is the skilled nursing market approaching a bottom?

And if it is, how do we value those facilities considering Medicare Advantage plans are shortening lengths of stay, Medicaid reimbursement dollars are getting squeezed and SNF censuses across the country are steadily declining?

After hitting a peak of nearly $100,000 per bed in 2016, SNF values have dropped off about 20%.  But demand is still high, and new buyers (big buyers) are hitting a market that is still flush with capital.  So, how do we make sense of these competing headwinds and tailwinds?

To learn more, listen to the webinar.

We also wanted to get a sense of what our audience thought about the market and asked them two questions. Here are the results:

  1. Are we at or close to a bottom in the SNF market?

               Yes—41%  (interestingly, all of our panelists answered “Yes”)

               No—59%

  1. Is the new PDPM going to increase or decrease SNF values?

               Increase—38%

               Decrease—23%

               No Impact—38%