A Continuing Care Retirement Community (CCRC) is a residential facility that provides a range of care and support options for its residents. In addition to providing independent or active living options, a CCRC has units for memory care, assisted living, and skilled nursing options all on one campus and under the same business entity.
Given the aging of the Baby Boomer population, there is a growing market demand for assisted living and memory care; however, strangely CCRCs are having a hard time managing their occupancy and diversifying their payer mix.
A place to start working on a solution for these facilities is to commission an Assisted Living Market Study to analyze the actual need in the region and ensure the services and amenities offered meet those needs. This study would also highlight what competitors are doing to entice residents, and provide CCRCs with crucial information factors that contribute to occupancy rates. This may be especially valuable for existing CCRCs that may be unaware of the latest services, amenities, and quality of their newer competitors.
In the past, gauging the affordability of or feasibility of a Continuing Care Retirement Community was defined by whether the average entrance fee equaled the average home value in the community. This meant that people could sell a home and comfortably roll the proceeds into the entrance fee for the community. However, since the real estate crash in 2008, this measurement has become out dated and must be redefined. Senior Consulting, LLC can work with your community to find ways to keep your business affordable and the preferable market choice in an increasingly competitive atmosphere.
Contact Us for more information if you are considering expanding or modifying your continuing care retirement community.