What steps do I need to take to sell my nursing home?
Direct answer
To sell a nursing home, get a valuation, organize your financial and regulatory records, market the facility confidentially to qualified buyers, negotiate a letter of intent and purchase agreement, complete due diligence, and then complete the state licensing change and the Medicare and Medicaid change of ownership before closing. Skilled nursing sales usually take longer than assisted living sales.
What to know
Value it on its income and risk. Buyers look closely at payor mix, state Medicaid rates, CMS star ratings and inspection history. Skilled nursing cap rates run about 8.0% to 9.5% in certificate-of-need states and 11% to 17% elsewhere.
Prepare documents early: 2 to 3 years of P&Ls, a current census, payor mix, payroll summary, licenses, 3 years of survey reports with plans of correction, and property information.
Plan the regulatory path. The buyer needs a state license, a Medicare and Medicaid change of ownership, and a state-licensed nursing home administrator. Those approvals drive the closing timeline.
Keep it confidential. Staff, residents and families are told only when you authorize it, usually around closing.
How Haven helps
Haven represents skilled nursing facilities with 16 or more beds and coordinates the change-of-ownership process through closing. Learn about selling with Haven.