The occupancy rate for entrance fee CCRCs increased to 90.2% in fourth quarter 2023, 4.1 percentage points (pps) higher than rental CCRCs and 6.6pps higher than non-CCRCs, outpacing rental CCRC occupancy in all care segments and regions. The Mid-Atlantic and Northeast Regions had the strongest occupancy rates for both entrance fee and rental CCRCs. Only about 10% of entrance fee CCRCs reported occupancy below 80% in the fourth quarter. More on CCRC occupancy and year-over-year changes in inventory, and same-store asking rent growth by care segment can be found in this analysis.  

“Mather has seen the greatest ROI from the integration of an enterprise dashboard with a voice activated Smart Home/Resident Experience/Wellness platform, that enables communities to better respond to residents’ needs and desires based on trends and learned behaviors. This type of offering is also a minimum expectation of boomers/GenXers who desire a technology-enabled community experience.”

Mary Leary

President & CEO, Mather 

 

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“Implementing an employee communication tool, called Red E App, that functions like text messaging.  With over 15,000 employees, trying to communicate global messages is difficult. During COVID, this app was a valuable resource for us to keep our employees updated on the day-to-day policy changes that were needed.”

Leigh Ann Barney

President/CEO, Trilogy Health Services 

 

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This analysis reveals a pattern in which senior housing properties use discount strategies to soften the relatively higher initial rate growth and attract new residents. The pace of move-ins appears to be a factor influencing these pricing strategies. Discounts increased in independent living, held steady in assisted living, and declined in memory care. Average initial rate growth is expected to align with inflation in 2024, based on historical trends. See the full analysis here.  

As we venture through 2024, the skilled nursing sector is preparing to navigate the challenges and seize the opportunities that lie ahead. The sector has several priorities, including securing increased reimbursement funding, enhancing public education about the sector, and addressing the ongoing workforce crisis. Many in the skilled nursing industry project that 2024 may be a critical juncture for the industry when considering the increase in occupancy, questions about Medicaid reimbursement, and expense pressure. Read more here.  

Innovative solutions for closing the widening gap in options for middle income seniors were explored during a recent NIC webinar discussion. The number of middle-income seniors will grow to 15.9 million by 2033, and about half will have chronic health conditions or mobility limitations. But only 2.2 million will be able to afford assisted living. Panelist Bob Kramer noted that “there is no one-size-fits-all solution,” and challenged providers to understand the market they’re trying to serve, level of services, payment sources, and barriers to scale. Four strategies for financing a sustainable model identified in a recent Milken report were discussed, and two panelists presented their successful middle market approaches. Learn more here.