Record nursing home sale, ‘frenzy’ of deals portend strong M&A in 2026
McKnights Long-Term Care News
December 21, 2025, By Kimberly Marselas
This article from McKnight’s Long-Term Care News reports on a massive surge in nursing home mergers and acquisitions (M&A) at the end of 2025, suggesting that 2026 will be a “blockbuster” year for the industry.
The key points include:
A Record-Breaking Environment
- The “Frenzy”: The industry is seeing a significant volume of deals, driven by major Real Estate Investment Trusts (REITs) and large-scale operators. The end of 2025 has seen record-shattering transaction totals as investors move to capitalize on stabilizing market conditions.
- Key Players: Dominant companies like Welltower, CareTrust REIT, and The Ensign Group are leading the charge. For example, Welltower recently completed multi-billion dollar portfolio acquisitions, while Ensign added dozens of new operations to its portfolio in 2025 alone.
Factors Driving the Surge
- Improving Fundamentals: Investors are responding to improved occupancy rates (which have largely recovered to pre-pandemic levels) and better-than-expected Medicaid reimbursement rates in several key states.
- Operator Strength: There is a “flight to quality,” where investors are seeking out strong, proven operators who can navigate the complexities of staffing and regulatory compliance.
- Smaller, independent facilities that struggled during the pandemic are being absorbed by larger, better-capitalized regional and national chains.
Outlook for 2026
- Sustained Momentum: Analysts predict that the momentum from late 2025 will carry directly into 2026. The pipeline for new deals is described as “robust,” with many large portfolios expected to come to market in the first half of the year.
- Investment “Golden Years”: Some market experts believe the sector is entering a new era of growth, characterized by higher asset values and more aggressive expansion by major health care REITs.
Market Implications
- Pricing Trends: Despite high interest rates, the price-per-bed for skilled nursing facilities remains strong, indicating high buyer confidence in the long-term viability of the sector due to the aging “Baby Boomer” population.
- Strategic Shift: The frenzy isn’t just about domestic growth; some major U.S. players are also expanding their footprints into international markets (like the U.K.) to diversify their holdings.
In summary, the article paints a picture of a vibrant and aggressive M&A market, where large institutional investors are doubling down on nursing homes as a high-growth asset class for the coming years.