Supply and demand dynamics determine the prices of the goods and services in a market economy. Prices allocate resources. In the United States, we have fifty different economies for the sale and purchase of skilled nursing facilities because each state has it own patchwork of regulations and reimbursement methodologies, as well as intrinsic economic, social and political characteristics. The table below gives our current assessment of supply/demand conditions affecting mergers and acquisitions transactions for the sale and purchase of skilled nursing facilities. A buyer’s market occurs when the supply (available skilled nursing facilities for sale) exceeds demand (the number of buyers seeking to purchase), and thus prices tend to fall. Conversely, a seller’s market occurs when the demand for available skilled nursing facilities to buy exceeds the supply of available skilled nursing facilities for sale, and thus prices tend to rise. Market equilibrium is a situation in which the market prices for skilled nursing facilities have reached the level where the available supply equals the quantity demand, and thus prices tend to more reliably reflect the underlying value of business. Market equilibrium is reached where the supply and demand curves intersect. The table below is are our assessment of general conditions by state. Each transaction is unique and may differ from these heuristic evaluations, which is all they are meant to be. We intend to update this table regularly or as market conditions change. Your comments are welcome and may be inserted below.

STATEBUYER'S MARKETSELLER'S MARKETMARKET EQUILIBRIUM
AlabamaX
ArkansasX
ArizonaX
CaliforniaX
ConnecticutX
District of ColumbiaX
FloridaX
GeorgiaX
IllinoisX
IndianaX
KansasX
KentuckyX
LousisianaX
MaineX
MarylandX
MassachusettsX
MichiganX
MissouriX
NevadaX
New JerseyX
New YorkX
North CarolinaX
OkahomaX
OhioX
PennsylvaniaX
Rhode IslandX
South CarolinaX
TennesseeX
TexasX
UtahX
VirginiaX
West VirginiaX
WisconsinX