Here's what happened in senior living management last month.
The majority of respondents to a NREI/NIC survey believe new senior housing supply will keep pace with demand, despite the continuing uptick in construction. Q2 saw more units built than any quarter in the past six years, and nearly 7 in 10 respondents expect the construction trend to continue over the next 12 months.
Source: National Real Estate Investor. Seniors Housing Sector Remains Bullish
According to new NIC data, memory care and assisted living construction has bounced back fairly well following the recession, but occupancy levels remain comparatively low, due to flat rent rates and a still-growing supply. Because CCRC and independent living facilities haven’t materialized at the same pace, their asking rents have returned to pre-recession levels. Despite the definite need, the relatively high cost of memory care coupled with the higher supply is forcing providers to cut rates in order to fill available space.
Source: NIC Insider. Market Fundamental Snapshots by Campus Type
New research from Redfin suggests that in some U.S. cities, seniors may be better set up to “age in place” than to move to an assisted living community. Redfin calculated median monthly mortgage payments and cost of assisted living in cities served by Uber, Rover, Porch, Instacart, and CareLinx. Their findings reflected that, in tech-ready cities, seniors may save as much as $1500 a month by staying in their homes and engaging services ad-hoc as long as their level of need allows.
Source: Redfin. 10 Best Cities for Technology Assisted Living
A new report by Alzheimer’s Disease International shows almost $47 million people worldwide are living with dementia. This figure is expected to double every 20 years as almost 10 million people develop the condition every year. The report also examines the economic costs of dementia, which currently tops $8 billion per year and is predicted to reach $1 trillion in the next three years.
Source: Alzheimer’s Disease International. World Alzheimer’s Report 2015
Knoxville, TN-based TeamHealth Holdings acquired IPC Healthcare, Inc., for a massive $1.6 billion. Team Health provides outsourced staffing and management services for about 1,000 hospitals nationwide. IPC clinicians specialize in post-acute care, including assisted living and skilled nursing. The acquisition positions TeamHealth “to capitalize on key trends as the U.S. healthcare industry moves toward value based reimbursement with an increased focus on post-acute care and services,” says President and CEO Mike Snow.
Source: Senior Housing News. 1.6 Billion Deal Creates Behemoth in Post-Acute Staffing