A Touch of Re-Classification
Sale of a three-property skilled nursing portfolio in central Ohio
Executing the transaction on behalf of a publicly traded REIT and its tenant, a national operator, Blueprint advised the seller on a strategic reduction of its licensed capacities to secure higher Medicaid reimbursement rates and unlock unrealized asset value
The three facilities were built or expanded in the 1980s and most recently renovated in the early 2000s. Situated in the Columbus MSA, each facility is conveniently located within three miles of the nearest regional hospital. The facilities maintained favorable local reputations and generated positive cash flow, but average census levels across the portfolio were below 90%.
Originally consisting of 302 total licensed beds, Blueprint advised on the decertification of five total beds, resulting in 297 combined licensed beds that ultimately transferred to the buyer at closing. Once the peer group reclassification was approved by the state and new rates were issued, the average Medicaid rate was boosted over $16 per patient day.
Executing the sale with timely precision to capitalize on the reclassification, Blueprint directly approached Nick Martinez and Todd Okum of O&M Investments, LLC, a group that the seller, operator, and Blueprint have transacted with previously. The buyer and its operating partner expeditiously worked with Blueprint and the seller through the sale and CHOW process to close the transaction upon the release of Ohio’s new Medicaid rates.