Nursing Home Investors Cite Renovation Costs as Expansion Barrier
At Skilled Nursing News' RETHINK Conference, REIT and operator executives described how aging building stock, renovation costs, and Medicaid reimbursement sustainability are slowing nursing home expansion despite rising demand. Omega Healthcare Investors' Daniel Miltner said the REIT is prioritizing "future-proofing," including unit configuration and sustainable state Medicaid rates, before committing capital. Operator executives Kimberly Green (Sage Integrated Health) and Steve LaForte (Cascadia Healthcare) said right-sizing rent, negotiating seller-funded repair reserves, and building a sustainable workforce are key to making deals work amid aging infrastructure and regulatory and reimbursement pressures, including the 2025 federal reconciliation law (OBBBA).