Date of Award

1992

Document Type

Thesis

Degree Name

Master of Science

Department

Business

Abstract

The thesis, Guidelines for the Nursing Home Appraiser and the Valuation of Entrepreneurship in Nursing Home Ownership, explores the unique challenges in appraising nursing home properties. It emphasizes the critical role of federal and state regulations, reimbursement programs, and care requirements in influencing property values. The paper outlines appraisal methodologies, including the cost, income, and sales comparison approaches, and addresses the nuances of valuing skilled nursing facilities, intermediate care facilities, and residential care facilities. It highlights the impact of legislative acts such as TEFRA, DEFRA, COBRA, and OBRA on valuation standards, emphasizing their effect on Medicaid and Medicare participation.

The work also discusses the entrepreneurial aspect of nursing home ownership, focusing on management fees and profit incentives as components of value. Key factors such as occupancy rates, census mix, and regional reimbursement structures are analyzed to provide comprehensive valuation insights. The thesis serves as a practical guide for appraisers, offering strategies to evaluate market value, regulatory compliance, and operational effectiveness. This resource is particularly valuable for professionals navigating the complexities of healthcare property assessment in a rapidly evolving industry.

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