CMS data from April 2018 vs. April 2017 shows a net difference 1,991 skilled nursing beds that were taken out of circulation year-over-year. The net difference of the 1,991 beds was the difference between 16,164 beds added and 18,155 subtracted (further breakdowns on each below). Comparing to the previous year, a net of 2,363 skilled nursing beds that were added to the market between April 2016 and April 2017.

States that don’t currently have a moratorium on skilled nursing beds are the primary factor for beds added to the market. In general, if an operator is able to demonstrate there is a need (in Certificate of Need states), and meets other criteria, the operator may be eligible to receive additional beds. Conversely, operators can close a facility or give beds back to the state whether or not there is a moratorium in place, resulting in an overall net reduction of beds in circulation (see Five Reasons Why Operators Consider Reducing Their Bed Licenses).

Net Reduction of Beds

Of the 18,155 net reduction of beds, 8,638, or 48%, were a direct result of a 136 Skilled Nursing Facility (SNF) shutting its doors, compared to 139 during the previous 12-month comparison.

An interesting statistic about these beds is that of the 8,638 reduced beds lost due an operator closing its doors, 4,970 beds, or 58%, were in states where they could have been sold to another operator. Operators could have capitalized on an asset, but for various reasons, did not unlock that value.

The remaining 9,517 bed (52%) reduction  was a result of one of three scenarios: 1) operators who gave a portion of their beds back to the state, 2) those who sold beds to another company, or 3) those who transferred beds from within their own organization.

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Net Addition of Beds

There were 16,164 beds added to the market, where 9,460 beds (59%) were added for constructing 124 new SNFs. The remaining 6,704 beds (41%) were added to existing facilities or sites. The beds added came from 1) states that do not have a moratorium in place, 2) operators who purchased them from another operator, or 3) operators who transferred them from within their own company, moving them from one facility to another (see Five Reasons Why Operators Acquire Bed Licenses).

As of April 2018, there were 15,647 SNFs in the United States.

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