McKnight's September 30, 2024
U.S. healthcare spending rose to $4.8 trillion in 2023, outpacing GDP, with an estimated $15,074 in spend per person in 2024. In particular, spending on nursing homes and home healthcare is growing fast, and as a result, investors are chasing the oft-mentioned “Silver Tsunami” and looking to ride the waves of high demand and strong M&A volume to high profits.
While the sector is characterized as a very high growth platform because of these factors, acquisition or development of senior living and skilled nursing facilities requires operators to demonstrate a nuanced understanding of their location and environment so that they avoid any nuisances that may arise with their lenders, landlords and the overall viability of their facility location.
Relationship development...