Can I hire an experienced administrator to run a facility I buy?
Direct answer
Yes, and it is the standard path. In most states the owner does not need a healthcare background, but the community must have a qualified administrator. Hiring an experienced administrator is one of the common ways buyers without healthcare experience operate successfully.
What to know
You have four workable structures: hire an experienced administrator, hire a third-party management company, partner with an experienced operator, or own the real estate and lease it to an operator on a triple-net basis. Third-party management fees typically run 5% to 8% of revenue.
Administrator requirements are state-specific, so check them during diligence. California, for example, licenses assisted living communities as Residential Care Facilities for the Elderly, and RCFE administrators must complete an 80-hour certification program and pass a state exam. Nursing homes must be run by a state-licensed nursing home administrator.
Whoever runs the community, the license follows the operator. When the operator changes, the new operator must be licensed through the state's change-of-ownership process.
How Haven helps
Haven helps buyers without healthcare backgrounds find communities and think through the operating structure before they buy. See how we work with buyers.