After years of rising costs and operational headwinds, Kentucky’s legislature in July of 2024 approved a significant increase in Medicaid funding for long-term care providers, resulting in a meaningful increase to reimbursement rates for SNFs, and by extension, a material surge in investor demand for facilities in the State.

Working with Blueprint to understand and capitalize on this dynamic market trend, Principle explored a range of strategic alternatives to capitalize on this positive impact. Blueprint identified that the unique quality, size, and scale of the portfolio, combined with the dramatic rate increase, would generate a hyper-competitive bidding environment. Principle agreed and elected to divest to focus efforts in other areas of its portfolio.

Following an extensive marketing process, Blueprint procured 12 qualified, competitive offers from a variety of in-state and out-of-state investors and operators. After careful consideration, and multiple rounds of comprehensive bidding, the seller ultimately selected a New Jersey-based owner/operator, with meaningful existing scale, eager to enter the Kentucky market. The buyer was selected for its compelling offer terms along with its unique, patient-centric approach to delivering the highest quality care.

Blueprint worked hand-in-glove with all stakeholders – seller, buyer, lenders, and operating teams – utilizing its extensive experience executing large skilled nursing portfolio transactions to successfully navigate the transaction process.