Earn $12K/Month Per Room with Medicaid in Assisted Living!

assisted living business strategy assisted living investment opportunities assisted living medicaid reimbursement assisted living underwriting calculator how to become a medicaid provider maximizing medicaid revenue medicaid and assisted living medicaid certification process medicaid funding for assisted living multi-tenant assisted living rooms Apr 14, 2025

Can You Really Make $12,000 Per Month Per Room with Medicaid?

If you’ve ever wondered whether Medicaid can be a profitable revenue stream for your assisted living business, the answer is yes—but you need the right strategy. Many investors overlook Medicaid because they assume it pays too little, but when structured correctly, it can generate large monthly revenues while serving seniors in need.

Here’s how you can make Medicaid work for your facility!

Check out the video, too:

Understanding Medicaid for Assisted Living

First, let’s clear up a common misconception: Medicaid is not Medicare.

Medicare is a federally funded program that covers hospital stays, doctor visits, and prescriptions—but not long-term assisted living care.
Medicaid is state-funded and helps low-income seniors pay for assisted living services.

Since Medicaid is managed by each state, reimbursement rates and requirements vary. That means understanding your state’s Medicaid program is key to maximizing your earnings.

How Medicaid Pays for Assisted Living

Unlike private-pay residents, where you set your own rates, Medicaid has a fixed daily reimbursement rate. However, Medicaid residents often contribute more than just the state’s reimbursement!

Here’s where your Medicaid income comes from:

✅ Medicaid Reimbursement Rate – The state pays a set amount per resident per day.

✅ Resident Contributions (RUF Payments) – Residents pay a portion of their Social Security income (usually around 90%).

✅ Share of Cost (Spend-Down Requirement) – Residents with extra income must pay a portion of their care costs before Medicaid kicks in.

By combining all three income sources, you can significantly increase your earnings while providing quality care to residents.

How to Become a Medicaid Provider

To receive Medicaid payments, your assisted living facility must be licensed and certified by your state. Here’s what you need to do:

1️⃣ Get Your Assisted Living Facility License – Work with your state’s health department to obtain a facility license.

2️⃣ Apply for Medicaid Certification – Complete the application and submit required documents.

3️⃣ Work with the Right Agencies – Licensing and Medicaid certification are handled by different departments, and they don’t always communicate well! Understanding the process in your state is crucial.

💡 Pro Tip: The Medicaid approval process varies by state. In Colorado, it took four months, but in Idaho, with proper planning, we reduced it to just three to four weeks!

How to Earn $12K Per Month Per Room with Medicaid

The key to maximizing revenue is multi-tenant rooms.

There are rules around shared rooms, so make sure you understand the guidelines for your state, typically you'll see something like "80 square feet per resident in a shared room" as a guideline. By having multiple residents in a room, it has the potential to double your revenue!

💰 Example Breakdown:

Medicaid Daily Rate: $150 per resident
Two Residents Per Room: $150 x 2 = $300 per day
Monthly Income Per Room: $300 x 30 = $9,000 per month
Resident Contributions: $1,200 - $1,500 extra per resident per month
Total Per Room: Up to $12,000 per month!

Multiply this by several rooms, and you can see how Medicaid facilities can reach high monthly revenue.

Key Takeaways for Assisted Living Investors

✅ Medicaid can be highly profitable—but you need the right strategy.

✅ You can maximize revenue with three income sources: Medicaid, RUF payments, and spend-down contributions.

✅ Multi-tenant rooms significantly boost earnings per square foot.

✅ Licensing and Medicaid certification take time, so plan ahead!

Take the Next Step

🚀 Want to maximize your Medicaid revenue? Download our Business Plan Checklist to ensure your facility is set up for success!

💡 Need expert guidance? Apply to the Assisted Living Investing Mastermind Program to learn step-by-step how to build, fund, and scale a Medicaid-friendly assisted living business.

📈 Don’t miss out on the opportunity to build a profitable, high-impact assisted living facility!

Download Your FREE Calculator

Send Me My Calculator

Stay connected with news and updates!

Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.

We hate SPAM. We will never sell your information, for any reason.