During the 80’s and 90’s many new Life Plan Communities (CCRCs) were established or existing ones were expanded, reorganized or both expanded and reorganized. Since that time Life Plan Communities have been a popular choice among older adults who tend to be proactive in their lives. The industry was dominated by nonprofits groups, but lately, the industry has seen significant growth of for-profit companies entering the senior living field. The added competition has many communities looking at the way they are doing business. Are there additional strategies to increase revenue besides the entry and monthly fees?
Another factor to consider is the continual inflation of entrance and monthly fees which tend to be increased about 2-4% a year, sometimes reflecting whatever the market will bear. Even if entry fees were stable at their current rate, at what point do the monthly fees become cost prohibitive for retirees? Once again, I ask, “are there ways to increase revenue other than entry and monthly fees?”
POTENTIAL SOURCES OF REVENUE
RD’s February blog will deal with three additional revenue sources for a Life Plan Community:
- Handyman or personal services
- Home and home-health care services
- Continuing Care at Home / Life Plan Community without walls/ Early Advantage Plans
Usually both handyman and personal services can be implemented without major changes to the operational structure. Even though the CCAH concept is complementary to the services usually provided by a Life Plan Community, offering a CCAH model may require a little planning, additional staffing, and some restructuring to ensure an effective offering, depending upon the type of program that would serve your community needs the best.
Each week, the RD blog will dig deeper into each of these concepts. Stay tuned for potential for more money for greater mission.
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About the Author
Patty Scotten is a consultant with Retirement DYNAMICS® and serves as their marketing manager. Patty has over twenty five years’ experience in the senior living industry and has led several communities in preselling expansions or increasing occupancy levels. She graduated from Elon University and holds a Masters Degree from University of North Carolina at Chapel Hill. Patty is licensed as both an assisted living and nursing home administrator.