The Analyst's Corner

Resident turnover is skyrocketing as a result of increasing acuity, so is the cost of replacing a resident, especially with referral sources like A Place for Mom.  Conservative estimates suggest that resident turnover costs the average 100-unit AL/MC $175k/yr.  So, what are you to do?

Double down on professional referrals.

Research suggests that 70% of leads in assisted living come from professional referral sources, ranging from physicians to home health agencies, a number that is set to grow as acuity continues to increase.  Even better, leads generated from these

Growing resident turnover and cost of resident acquisition are putting pressure on the profitability of senior housing operators.  With up to 70%+ of senior hosing leads coming from professional referral sources, referral source engagement is by far the most cost-effective lead generation strategy available to senior housing operators.  To help facilitate more efficient and effective lead generation, VisionLTC is pleased to announce the public beta launch of an innovative referral source management tool for senior housing operators, known as Referral Insight.

Unique in the industry, Referral Insight allows senior housing operators

Examining trends in median home values is a key factor when assessing whether, and to what extent, seniors will be able to pay for senior housing. We know the cost of care and housing is expensive, costing between $3,000 and $4,500 a month; seniors typically pay for it in one of two ways:

Income- Seniors who have income from pensions, public benefits, or rents, or who have family members who work and support them, can use their income to pay for their long-term care.
Assets- Seniors who own stocks, bonds, cars, or

“Assisted Living Occupancy Falls to a 6-Year Low Due to Record Breaking Inventory Growth”

Record breaking inventory growth is driving assisted living occupancy to lows not seen since the tail end of the Great Recession.  Yet not evenly.  Data shows that in the nation’s top markets, AL occupancy ranges from 80% in Houston to 96% in San Jose.  That’s the difference between negative EBTIDAR margins and healthy coverage.  So what drives these differences?

Factors Driving Assisted Living Market Performance

As we all learned in Econ 101, supply and demand drives market

Now that we’ve talked about how some markets have pockets of untapped demand, I’d like to shift focus by posing two questions. How do seniors pay for their stay in senior-housing, and how are we, as an industry, qualifying seniors when we assess market demand?

When I read industry publications, feasibility studies, and talk to industry experts, everyone agrees that seniors need a minimum annual income to afford senior-housing without help from an adult child or other family member. The most common qualifying income I see is $35,000, which is closely

“A memory care building binge.” “Oversupply is rampant.” “Memory care is overdeveloped.”

You know the headlines – everyone is worried about oversupply, and the data shows that, in certain markets, memory care oversupply is an issue. Despite these headlines, the reality is that demographics are driving a boom in memory care demand and that supply will have to work hard to keep up.  But the question is when and where.  The data shows that demand growth is unevenly distributed: the Alzheimer’s Association predicts that the dementia afflicted-population will increase

The Senior-Housing industry is growing rapidly, and the competition for prospective residents is becoming more intense every day. The number of senior-housing facilities currently on the market is growing at an increasing rate and occupancy rates are slowly declining. For this reason, oversupply has become a buzzword in many boardrooms and at conferences across the United States. The question is why? Is supply vastly out growing demand across the nation or is new supply being built in the wrong markets because demand is being underestimated?

Another buzzword common to the space

Executive Summary / Key Takeaways

Competitive Bed Allocation is the process of determining how many competitive beds will be counted against your project.  This number will be used to establish penetration rates, market capacity, competitive market trends and characteristics, and a range of other very important key performance indicators.
There are two common methods of allocating competitive beds:

Point Allocation – if a competing facility is located in the primary market area (PMA), 100% of its beds count against the project.  If a competitor is outside of the PMA, then none of its beds count against the project.
PMA