Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.
Issue link: https://seniorshousingbusiness.epubxp.com/i/566450
50 2015 ASHA 50 17 2015 Q: As a longtime industry partic- ipant, what is the biggest change you've seen over the years? Cohen: The industry started out focusing on housing and hospi- tality. As the industry has matured, it is now a part of the healthcare continuum. There has been a remarkable change in the consumer coming out of the recession. Seniors didn't want to sell their homes from 2008-2010 because hous- ing values dropped, so they delayed making a move. Now the residents moving into seniors housing are older and frailer. The length of their stay in seniors housing has short- ened with more focus on assisted living and supportive services. Q: How is the industry responding? Cohen: The industry is at an infection point. With the grow- ing importance of accountable care organizations, and Medicare and Medicaid, seniors housing is playing a role in the healthcare continuum. The real objective from a policy standpoint is to have good outcomes at a lower cost. I think we could see an increase in penetration rates for seniors housing, which now stand at about only 6 to 7 percent nationally. The number of older people is growing and they have higher acuity levels. At the same time, there are fewer family caregivers and seniors need more social engagement and emotional support. Hospitals are discharging seniors more quickly, increasing the need for post-acute collaboration. We'll also see more focus on staff training and educa- tion, and quality assurance. These dynamics illustrate why the consumer education initiative is so important. We've just started to scratch the surface regarding the role of seniors housing in the healthcare continuum. Q: It's been said that the delivery of quality and cost-effective care will depend on the size of the organization. Do you expect more industry consolidation? Cohen: Yes. About 70 percent of the industry is made up of regional or local operators. Capital Senior Living has had an effective growth trajectory through strategic acqui- sitions. We've acquired 49 build- ings since 2011. The buildings we bought had good occupancies and margins, but they lacked the latest property management systems. These local operators are pas- sionate and have great properties, but they are aware that it is becom- ing more diffcult to operate alone. ACTIVELY INVESTING IN SENIOR LIVING H A R R I S O N S T R E E T Focused Investments in Education, Healthcare & Storage Real Estate 71 SOUTH WACKER DRIVE, SUITE 3575, CHICAGO, IL 60606 W W W.HARRISONST.COM | 312.920.050 0 Since 2006 we have acquired or developed over $3.3 billion in senior housing properties nationwide. As one of the largest private equity investors in the senior housing space we continue to actively seek acquisition and development opportunities.