Skilled Nursing Market Remains Strong

Economic uncertainty remains a top concern for many across senior living, but 2022 ended on a high note for skilled nursing. According to a report published by LevinPro, there were 527 senior housing and care acquisitions last year, which is a 17% increase from 2021. There are many factors that contributed to this boost, namely investor interest. However, industry experts predict 2023 will be a challenging year as interest rates soar and conservative lending terms dissuade borrowers. Ben Swett, editor of LevinPro’s SeniorCare Investor, notes that the beginning of the year should present opportunities for investors as owners look to sell. 
“Our transaction volume has seen a dramatic increase since early December 2022 and is continuing into the new year.” says Jeff Hauser, Chief Operating Officer at Sherman & Roylance. 

New Concepts, Care Models Reshaping SNFs

Our first blog of the new year looked at some of the most anticipated trends, from the rise of technology to reimagined housing models and ongoing labor struggles. For operators in the skilled nursing space, crippling workforce shortages continue to create challenges. As we discussed last year, healthcare mergers and acquisitions played an integral role, especially after pandemic assistance and federal funding slowed. In addition, new construction plummeted during the pandemic, motivating operators to pursue M&A opportunities or reimagine traditional care models. 
Here’s a look at some of the other predictions for SNFs this year:
  • Big players will remain active in the M&A space
  • Home healthcare bounces back as SNF-at-home models rise in popularity
  • SNF referrals to rebound
  • Operators should invest in new services and tech focused on boosting SNF-at-home programs 
  • Higher acuity patients will motivate facilities to evolve 

Looking ahead, it’s difficult to predict where investor interest in SNFs will sit in 2023. If you are interested in buying or selling a senior care facility, we encourage you to reach out to one of our team members today. We have extensive experience representing both buyers and sellers and are here to ensure you make a decision that is best for you and your facility. We also offer valuation analysis and can help you come up with an exit strategy, if need be.