This week’s graphic highlights new data that illustrates interesting trends in senior living mergers and acquisitions. An increasingly common trend for hospitals consolidation is also continuing in the senior living market. In 2024, there were 62 announced senior living M&A transactions, compared with 59 in 2023 and 48 in 2022. Much of activity constitutes for-profit entities acquiring not-for-profit entities; this trend nearly doubled between 2022 and 2024. For-profits predominantly acquired skilled nursing facilities (SNFs); this comprised 25 out of 33 transactions in 2024. Not-for-profits continue to shy away from SNFs because of the challenging nature of managing their operations. Another trend: the larger players are getting larger. In 25 out of 29 transactions in which a not-for-profit was the acquiring party, the acquirer already owned at least three facilities. While there is reason to be cautiously optimistic about continued M&A activity in senior living, factors such as potential Medicaid changes and staffing rule changes could hamper the sector.
