5 Reports You Should Read Today

Members | April 10, 2018 | by Stephen Maag

Here are 5 reports that Steve Maag recommends you review to keep up with trends in the senior living field or gauge how your community measures up in relation to other organizations.

LeadingAge members are always on the lookout for good sources of data that will help them keep up with trends in the senior living field or gauge how their communities measure up in relation to other organizations.

I’m happy to report that many such resources have come across my desk in recent weeks. Here are 5 reports that I recommend you review.

Overall Trends: 2018 Seniors Housing and Care Survey

The 2018 Seniors Housing and Care Survey from Lancaster Pollard shows how chief executive officers (CEO), owners, or chief financial officers (CFO) of senior living communities view current and future trends in our field. These insights caught my eye:

Competition: Most (87%) respondents described their local environments as “extremely competitive” or “competitive.”

Big concerns: Eighty-two percent of respondents cited “a shortage of workers” as their biggest concern. About half (51%) of respondents cited “occupancy” as their biggest concern.

Outlook: More than half of respondents predicted a good outlook over the next 3 years for assisted living (58%) and life plan communities (55%).

New construction: Fewer than half (46%) of respondents said they are extremely likely to pursue a new construction project in the next year, down from 53% in 2017. More than a third (37%) said they had plans to pursue an assisted living construction project, down from last year’s 44%. About a third (35%) had plans in memory care.

Growth in 2018: More than half (53%) of respondents predicted that Alzheimer’s/memory care would see the most growth in 2018. In last year’s survey, respondents identified affordable housing as the field’s top growth area.

Salary Trends: Leadingage-CEMO Leadership Compensation Survey

Salaries for executives at nonprofit multi-site organizations are on the rise, according to findings from the 2017 LeadingAge-CEMO Leadership Compensation Survey. The survey report includes data from 108 organizations representing 1,300 executives.

The annual survey is conducted by CliftonLarsonAllen on behalf of LeadingAge and through the Chief Executives of Multi-Site Organizations (CEMO).

Overall, salaries for all executive positions increased by 4.7% in 2017, matching the previous year’s increases. Specifically, base compensation increased by:

  • 4.98% for CEOs,
  • 5.8% for CFOs,
  • 4.0% for top marketing executives, and
  • 5.26% for top human resources executives.

It’s important to stay abreast of this data so you can remain competitive in executive recruitment and retention. Visit LeadingAge.org to order your copy.

Occupancy Trends: Seniors Housing Research Report

The occupancy picture for life plan communities is looking bright for 2018, according to the latest Seniors Housing Research Report from Marcus & Millichap.

The report predicts that occupancy at life plan communities will rise 30 basis points to 91.2% in 2018. Assisted living occupancy, on the other hand, will drop 50 basis points to 88.1%, according to the report. This compares with an assisted living occupancy rate of 88.6% at the end of 2017.

The report includes some interesting facts about life plan communities:

  • Inventory grew by 2,000 units during the last year, the slowest annual growth since 2011.
  • Healthy occupancy rates generated a 3.4% increase in monthly rents, which reached $3,220 last year. Entrance fees rose by 5%, ending 2017 at roughly $330,000. The report predicts a 3% growth in average asking rents and entrance fees over the next year.
  • Sales of life plan communities fell for a second consecutive year, with more than half of all trades occurring for properties constructed more than 20 years ago. On average, properties traded over the last 12 months sold for an average price of nearly $127,800 per unit.

Nonprofit Sponsorship Transitions

Ziegler reports that 60 market-rate life plan communities transferred ownership and/or sponsorship in 2017. This compares to 91 communities in 2016 and 80 communities in 2015, according to the March 5, 2018 edition of Ziegler’s Senior Living Finance Z-News.

Lisa McCracken, director of senior living research and development at Ziegler, attributes the decrease in transfers to the fact that there were fewer transactions involving large numbers of communities.

Ziegler is currently tracking more than 30 cases of nonprofit providers that are looking to grow through affiliations or acquisitions, or organization that are considering disposing of a community to the for-profit sector.

Resident Characteristics in Residential Care Communities

A new report from the National Center for Health Statistics shows that residents of residential care communities with more than 25 beds were more likely than residents of smaller communities to be aged 85 and older, and to have fallen in the previous 90 days.

The report’s data come from the National Study of Long-Term Care Providers, a biennial study that monitors trends in the supply, provision, and use of the major sectors of paid, regulated long-term care services.

Study data also show that, compared with residents of larger communities, residents of communities with 4-25 beds were more likely to:

  • Be Medicaid beneficiaries,
  • Live with Alzheimer’s disease and depression, and
  • Need assistance with bathing, dressing, toileting, transferring, walking, or eating.