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?
If you have thought about selling your nursing home, now would be an ideal time.  Take advantage of the high demand and low cost of capital environment before the government makes more changes.  Please contact Ryan Saul for a confidential proposal to help determine market value.

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