How do Medicaid waivers affect assisted living value?
Direct answer
Medicaid waiver revenue usually pays less than private-pay rates, so communities that depend heavily on Medicaid waivers tend to earn lower margins and sell at lower values. Buyers apply higher cap rates to heavy Medicaid dependence because reimbursement is set by the state and can change.
What to know
Waiver programs vary by state, so the effect on value depends on your state's rates and rules.
A balanced mix can help occupancy, but a strong private-pay mix generally supports higher value.
Buyers will review payor mix by month and the history of state rate changes during due diligence.
How Haven helps
Haven values communities with your actual payor mix and state reimbursement in mind. See What's My Property Worth.