Skilled Nursing Feasibility Study in Michigan

Michigan skilled nursing: fifth of 48 states

Michigan holds 5 of 48 among states for skilled nursing loans, and that position is the first fact worth stating. The cell logs 37 approvals worth $46.4 million across the window, and shows a location quotient of 1.38x, though skilled nursing sits only 22 of 39 among Michigan industries. The $588,000 median is 0.88x the usual national ticket, and the central half of loans spreads from $150,000 up to $2.2 million, wide enough to hold a small home and a large facility. Nothing else is distinct enough to lead, so the rank and the size band do the work on this page. For lenders the band matters: a $150,000 loan and a $2.2 million loan belong to different businesses, and the diligence for each differs.

For Michigan skilled nursing, neither cancellations nor charge-offs can be put in a rate, because both cohorts fall short of the 30-loan line. A lender must not read the blanks as clean records. Nursing operators carry regulatory, staffing and reimbursement risk, so underwriting depends on the individual facility and its operator.

Operators and banks

Nursing homes took 33 loans through 7(a) and 4 through 504, and 2.7% have a franchise. ChoiceOne Bank has 11 loans and $13.7 million, an average ticket well above Huntington National Bank, which has 11 loans and $3.8 million. Oakland County has 14 loans, Saginaw 7 and Genesee 3, with the rest scattered across the state. FY2023 produced 11 loans worth $6.4 million, and FY2026 shows 5 loans worth $5.5 million.

Questions for a Michigan nursing study

The study must establish demand through licensed beds per older resident and the occupancy of existing facilities, together with payer mix, since Medicaid and Medicare rates drive revenue. Staffing is the binding cost and must be modeled with wage trends. Regulatory approvals and licensing timelines affect when a facility opens. Debt service coverage should be tested at occupancy levels below the pro forma. An appraiser should value the operating business and the real estate separately, since a nursing home building has few alternative uses. The category also holds inpatient hospice and assisted living with nursing care, so loan sizes mix different facility types.