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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Page 21 of 40 21 July 2018 n Seniors Housing Business WE DON'T MEASURE SUCCESS IN TRANSACTIONS. WE INVEST IN RELATIONSHIPS. We offer more than just attractive capital, we are a partner in your success. 888.393.8248 home as quickly and inexpen- sively as possible, says Cochrane. Creative arrangements are emerging. In March, Front Porch, a nonprofit provider, closed its skilled nursing unit at Vista del Monte, a community in Santa Bar- bara, California. The unit is being converted into 19 new memory care units slated to open in the summer of 2019. Front Porch is partnering with HumanGood, which will offer skilled nursing at its nearby Valle Verde community to residents of Vista del Monte. "We are con- solidating usage," says Cochrane. "You will see more of that." With three retirement commu- nities in Pennsylvania, Redstone Presbyterian SeniorCare has taken a different approach. Though the system does not want to increase its number of skilled nursing beds, Redstone is using a nimble strat- egy to keep the current comple- ment of 77 beds fully occupied. "We had 566 admissions last year," says John R. Dickson IV, president and CEO at Redstone based in Greensburg, Pennsylvania. In an effort to reduce length of stay and improve quality, the organization created a navigation department to interface with refer- ral sources and payors. Redstone became a preferred provider for Highmark Health, the region's big hospital system. Redstone is also a recognized specialist in stroke, cardio care and hip replacement therapy. "We manage those conditions," says Dickson. "The nursing home busi- ness is no longer for generalists, but for specialists." 5. Rentals on the rise Many rental retirement commu- nities are operated by for-profit owners, while nonprofit enti- ties have traditionally focused on entrance fee communities. But a growing number of nonprofit communities are offering rental contracts. Also, nonprofit executives see rental communities as a possible solution to the issue of affordabil- ity. Middle-income seniors may be able to afford monthly rent, but may not have enough money for a big entrance fee. For now, the rental option is typ- ically used as a way for potential residents to try out a community before paying an entrance fee for a permanent place. In other cases, it's a way to boost occupancy. What's more, baby boomers may prefer the flexibility offered by rentals, says Dickson. Redstone tested the rental option at its entry- fee community in North Hunting- don, Pennsylvania. Ten units set aside for rent filled quickly. Another five units offered for rent also filled quickly. Monthly rents range from about $1,500 to $3,500. Redstone's Murrysville campus also introduced a rental option. Residents sign a year lease and receive transportation and house- keeping. Meals are purchased separately. The program has been so suc- cessful that Redstone may offer a straight rental option for assisted living. Residents coming into assisted living from outside the community currently pay a $5,000 entrance fee, which would be eliminated. "We have no intention to fully shift to all rental units," says Dick- son. Offering rental units along- side entry-fee units is a balancing act, he explains. Rentals help boost occupancies and provide a regular cash flow stream. But too many rentals could negatively impact the long-term viability of the community that provides life care for entry-fee resi- dents, emphasizes Dickson. "We have to be careful." n The Evergreens in Moorestown, New Jersey, recently affiliated with Acts Retirement-Life Communities. Acts brings economies of scale, expanding its portfolio in the region.

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