Erickson Living is moving up the ranks of independent living providers, following a 2015 in which the company completed the construction of five new residential buildings and reduced hospital readmission rates for members of its integrated health plan.
A Baltimore, Maryland-based developer and manager of continuing care retirement communities (CCRCs), Erickson Living on Wednesday revealed several key figures from 2015, noting that it became the third-largest independent living provider in the country in 2015, according to Argentum’s (formerly ALFA) annual ranking of providers by resident capacity. The company was ranked as the sixth-largest senior living provider overall.
Also noteworthy was that National Senior Campuses (NSC), for which Erickson serves as its operator and developer, snagged a No.1 spot as the largest nonprofit senior living provider in 2015, according to the LeadingAge Ziegler 150, which ranks the largest 150 not-for-profit multi-site senior living organizations.
“By all accounts, 2015 was a notable year for Erickson Living,” the news release states. “The company made great strides in achieving its enterprise-wide goals and delivering on its commitments to residents and staff.”
The year was marked by a record number of entrance fee settlements at 2,400, according to the release, a 26% increase over the year prior. Over the past five years, company entrance fee settlements total more than 9,600, contributing to steady net operating income (NOI) growth across the board, the release states.
“Our record-setting year on entrance fee settlements is due to our brisk pace of development, the effectiveness of our sales organization and our overall philosophy of driving very high occupancy at each community,” Erickson CEO Alan Butler said in a statement to Senior Housing News.
Occupancy among Erickson Living communities reached more than 96%, as well, rising above an industry average of 90.1% at the end of the year. In the last three months of the year, both independent living and assisted living saw a slight increase in occupancy rates across the sector, according to fourth quarter market fundamentals Map Data from the National Investment Center for Seniors Housing & Care (NIC).
In terms of development, Erickson Living currently has 23 projects budgeted in eight states—Virginia, Texas, Colorado, Michigan, New Jersey, Pennsylvania, North Carolina and Kansas—with plans to add more than 1,850 units for about $565 million. The completed construction of five new buildings in 2015 boosted the company’s portfolio to 20,250 units dispersed over 19 properties in 11 states.
Additionally, Erickson Living’s medical advantage plan, Erickson Advantage, lowered its hospital readmission rate to just 5%, as compared to Medicare’s national readmission rate average of 17%. The plan also earned a five-star rating from the Centers for Medicare & Medicaid Services (CMS) for Parts C and D.
“A five-star rating is considered exceptional and reflective of the highest-quality products and coordinated health care for seniors and Medicare beneficiaries,” the release states.
Erickson manages to keep hospitalization rates low due to factors such as same day visits, close management of the transition process and advanced care planning, the company told SHN.
Written by Kourtney Liepelt