Seniors Housing Business

JUL 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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20 Seniors Housing Business n July 2018 ...United Group knows senior communities. DEVELOPMENT • INVESTMENT • MANAGEMENT • ACQUISITIONS With over 35 years of experience in senior housing and a focus on Independent Living / IL Light developments, ... For questions about United Group, its senior portfolio, or third-party management opportunities, please contact: ( 518 ) 687 - 7300 • • United Group is pleased to announce three new communities coming to Florida: The Alloro at University Groves – Sarasota, FL 183 units Arcadia Gardens – Palm Beach Gardens, FL 220 units The Sovana at Stuart – Stuart, FL 182 units 4. Nonprofits are decreasing their skilled nursing units Skilled nursing units are declin- ing in number overall and non- profits are part of the trend. The changes underway in the health- care delivery and payments sys- tem are having a big impact on skilled nursing providers. Non- profits are re-evaluating the opti- mal number of skilled units for their communities, and, in some cases, whether they should be in the skilled nursing business at all. "Nonprofits are moving away from offering on-site skilled care," says Leary at Mather LifeWays. She still believes in providing skilled care in high-end life plan communities, but she expects new care options to surface over time. HumanGood is evaluating the skilled nursing component across its portfolio. "There is no standard ratio of independent living units to skilled nursing units," says CEO Cochrane. "It's a market-by-mar- ket phenomenon." He adds that more changes have occurred in the skilled nursing arena in the last two years than in the previous 20 years. Hospital systems want skilled nursing providers that can control readmissions and get patients back Small nonprofits band together for scale Amid consolidation pressures, a new type of group affiliation for nonprofit organizations has emerged. In 2012, an affiliation model of high-quality life plan communities was created called Novare. It is designed for single-site and small-system nonprofits to enjoy the benefits of big organizations. Novare currently has 17 members, all life plan communities in non-competing markets. The group has plans to double in size over the next few years. "We have organizations from Hawaii to Mas- sachusetts and from Montana to Florida," says Mary Leary, president and CEO at Mather Life- Ways, one of the founding members of Novare and its current board chair. "We can provide the ben- efits of a merger while our members maintain their independence." Novare — a Latin term meaning "make new" — is about 70 units shy of being equivalent in size to the third largest nonprofit seniors living provider organization in the country. Acts Retirement-Life is ranked third on the LeadingAge Ziegler 150 list of nonprofit providers. Acts has 23 communities. "We are the next generation affiliation model," says Leary. Novare is a private organization whose mem- bers are selected by invitation only. Funding comes from member dues, which are used to explore new opportunities, such as an online wellness assess- ment tool. Member organizations maintain separate govern- ing boards, financial statements and tax returns. But they can achieve economies of scale and seek reve- nue enhancement opportunities together, says Leary. "We've developed a lot of programs over the last six years," she says. These programs include: • CEO forums to discuss innovative and "next" practices; • peer exchanges on operations, such as culinary service and information technology; • leadership and management development; • idea sharing on hot topics such as social media policies and risk management practices; • resident and employee satisfaction surveys, and benchmarking tools; • an opportunity to participate in research studies. Novare has a three-year strategic plan, which is currently being implemented. A group-purchasing platform was launched last December. It enables Novare to purchase a wide range of products at group discounts, including items such as food and beverages, as well as clinical and maintenance supplies. The group can also source bids for capital expen- ditures. The system allows members to save time through a single-source purchasing agent. "We are excited about the Novare concept," says Leary. "It's unlike anything of its kind." — Jane Adler

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