Why an assisted living facility is a timely business
A healthy, safe, and independent lifestyle for its residents, assisted living facilities provide a combination of housing, personalized support services, transportation, meals, housekeeping, 24-hour supervision, and medical care designed to meet the needs of people who require assistance with activities of daily living. In the current financial crisis, healthcare business has become one of the top dependent global business opportunities. Consequently, owning an assisted living facility is a good practical business opportunity, as well as an opportunity to help others in need. This article will discuss why it is a timely and financially beneficial business, the population it serves, sources of funding for residents, homeowners, and types of assisted living.
A Timely and Financially Beneficial Business
Currently, more than a million Americans live in some 20,000 assisted living residences. The Assisted Living Industry today, for the most part, serves the wealthiest 10% of the nation’s senior population. This field has expanded rapidly from 1990 to 1997; then excessive construction occurred on the course in 2002 and again in 2005. In 2007 the course began to expand again and in 2008 the course was expanded by individual entrepreneurs with smaller facilities that are in the range of 15-50 units. Niche, facilities continue to thrive and expand. Another need that makes an assisted living facility a timely and profitable business is the aging Baby Boomer population. The average Baby Boomer is 65 years old today. According to the United States Census Bureau report,We the People: Aging in the USA – a special report on the 2000 Census written by
Yvonne J. Gist and Lisa I. Hetzel, “In 2000, the population aged 65 and over comprised 35.0 million people. Within this group, 18.5 million people or 53 percent were between the ages of 65 and 74 years, 12.3 million or 35 percent were 75 to 84, and 4.2 million or 12 percent were 85 or older.Women outnumbered men in this group: 20.6 million women compared to 14.4 million men.The 65-74 and 85-plus age groups each had nearly 2 million more women than men, and the 75-84 age group had nearly 3 million millions more.”
In addition, according to the US Census Bureau, the total population of people age 65 and older in 2007 represented 12.6% of the total population of the United States. With Florida, West Virginia, and Pennsylvania as the top three states where these residents reside. Baby Boomers, who won’t have a full impact on the assisted living market until 2010, are beginning to enter the assisted living market. The senior market has expanded beyond any previous experience in American or world history due to the Baby Boomer phenomenon. These people, whose unprecedented multiple numbers will now become seniors, and thanks to the efforts of the modern medical community and our general population living a healthier lifestyle, a market of senior citizens is developing. the third age for which we have not prepared or anticipated. Consequently, it is a beneficial business opportunity to own an assisted living facility due to the cutting statistics of a developing senior population, advances in medical technology leading to people living longer, and federal governments. and state seek to reduce costs by utilizing assisted living facilities and adults. day centers as a continuum of care for the elderly.
The population served by an assisted living facility
The typical assisted living resident may be young or old, wealthy or low-income, frail or disabled. A typical resident is a female in her eighties and is widowed or single. Residents may suffer from Alzheimer’s disease or other memory disorders. Residents may also need help with incontinence or mobility. Assisted living homes are not for people who need constant professional nursing care. As we look to the future to prepare for Baby Boomers, some industry experts agree that it is difficult to predict what this new age group will look like, while others advise providers to prepare for a deluge of comfort demands. , luxury and location. . This current group will have significant discretionary spending power. They have more money to spend on travel, cars, appliances, and toys than anyone else. In addition, the long-term care industry will have residents who have been presidents, CEOs, CFOs, and vice presidents of large corporations, extensive computer literacy, and financial independence, all of which will lead to more acuity care. Service development, innovative facility design, product design, personalized memory and social care activities, and high-functioning care facilities will all be things to consider no matter the size of your facility.
These facilities will provide services including meals, housekeeping services, transportation, health promotion and exercise programs, personal laundry services, social and recreational activities, on-site beauty salon, memory care or dementia services. In addition, these facilities can provide access to health and medical services, such as emergency call systems, bathing, dressing, administering medication, and necessary assistance with eating, walking, and toileting. Some of these services are generally not paid for by health insurance or the Medicare or Medicaid programs. Not all facility residents need significant care or assistance. Many are there because they want a simpler lifestyle without the worry of maintaining a home and seek the company of others their own age. They may also need some minor help, such as taking medication, want a safe environment, or may require some supervision.
COSTS AND FINANCING
Resident Financing: Costs will vary based on the level of care and services provided. Assisted living care can be paid for through a long-term care insurance policy, but most people pay the cost themselves, known as private pay term. There are still more assumptions than known facts about where the money to pay for assisted living comes from. A recent study by the National Investment Center for the Elderly Care and Housing Industries reports that more than a third of residents receive some form of outside assistance, in the form of Supplemental Security Income (8.9%), health coverage, Medicaid (7.2%), private insurance payments (3.2%), state assistance (2.8%), Veterans Administration supplements (.5%) or payments from Social Security, Medicare, POW benefits, workers’ compensation, state aid, pensions and military. Meanwhile, federal, county and state assistance programs are shifting more Medicaid funds from home care and skilled nursing to assisted living. In addition, the survey indicates that residents receiving financial assistance stay longer than residents who pay privately, and that residents receiving state assistance stay the longest, an average of 4.13 years.
Business financing: There are a variety of funds available to people starting an assisted living facility.
1. HUD (Housing and Urban Development)
2. USDA (United States Department of Agriculture) for installations in rural areas.
3. SBA (United States Small Business Administration)
4. OWBO (Office of Women’s Business Ownership)
5. Non-profit organizations like the Robert Wood Johnson Foundation
6. Community block grants
7. Private investors
Facilities vary in size and nomenclature
While assisted living is the most common term used in the nation by both industry and state regulatory agencies, assisted living settings may be known by many different names, including but not limited to residential care, personal care, care adult group living, pensions, adult group living, retiree community facilities, retirement homes, and home care. The difference in licensing is usually based on the size of the facility or the services they offer.
Residential or Board and Care is typically a converted home or small facility with six to ten beds where the caregiver is a homeowner or sole proprietor with little or no support staff. Typically, these facilities cannot offer much care beyond bathing, dressing, providing meals, or helping residents get around. However, some of these homes may have contracts with home health agencies, doctors or nurses who visit the home to provide care to their residents.
The newer facilities are more like apartment buildings with private rooms or suites with locked doors. Instead of a nurse’s desk, there is a help desk. And instead of a hospital-like lounge and sterile cafeteria, assisted living has gathering areas with couches, fireplaces, gardens, atriums, and so on. Central dining rooms are more like banquet halls and often provide entertainment during or after meals. Meaningful activities and chats with neighbors in a friendly environment keep residents active and stimulated.
More and more assisted living facilities are specializing in the care of Alzheimer’s patients or people with memory problems. An Alzheimer’s patient usually does not require much medical attention, but often requires supervision, confinement, fairly quiet surroundings, gardens with pathways, and locked front gates to prevent residents from wandering.
In conclusion, the assisted living business continues to grow and expand services to a growing population which, in turn, lends itself to a vertical market with positive potential and growth for a commercial enterprise.