How much does it cost to open a nursing home?
Direct answer
Opening a new nursing home is expensive and slow, which is why most investors buy an existing one. Beyond construction, you need a state license, Medicare and Medicaid certification, a licensed nursing home administrator and, in certificate-of-need states, state approval to add beds at all. Existing skilled nursing facilities trade at about $30,000 to $80,000 per bed.
What to know
Certificate-of-need rules in many states limit new nursing home beds, which can make building impossible without an approved need.
New facilities also need time to staff up, pass inspections, earn certification and fill beds before income covers costs.
Buying an existing facility gives you licensed beds, certification and income from day one, though you take on its survey history and staff.
How Haven helps
Haven helps investors compare buying existing skilled nursing facilities against building. Read our senior housing market outlook.