Providing a continuum of care services outside of the traditional bricks-and-mortar setting can be way to increase utilization and occupancy at senior living communities, but it’s paramount for providers interested in starting these types of programs to do their homework, said Sarah Spellman, a director at top-ten accounting firm CliftonLarsonAllen LLP during an interview with not-for-profit senior living provider organization LeadingAge.
Here’s what Spellman had to say on how a continuing care at home program could improve a CCRC’s financial position:
Continuing Care at Home programs have relatively low startup costs. There are virtually no capital costs, especially if you are locating the program’s infrastructure in existing buildings on your campus. Of course, you have to remember that this is lifecare, so you’ll have to continue to maintain reserves, as with any lifecare contract.
Cost savings come from the ability to spread the organization’s current administrative costs over an additional program. Let’s say the Continuing Care at Home program has an office on your campus. You can charge rent for that office. You can also charge the program for other administrative services, including the work your staff does to bill program members.
A Continuing Care at Home program can also help you increase utilization and occupancy of your assisted living or nursing home. Granted, you won’t increase your occupancy by very much because these programs are focused on keeping people at home. But if Continuing Care at Home members ever need assisted living, nursing home care or even short-term rehab, they are going to use your campus facilities. And you can charge the Continuing Care at Home program for those services.
Finally, there may be a small number of Continuing Care at Home members who decide, after a while, that they want to move to your campus. This usually happens when someone experiences a life change, like the loss of a spouse.
Written by Alyssa Gerace