Everything is bigger in Texas, the saying goes. However, that cannot be said for continuing care retirement community (CCRC) entry fees or total margins, according to a newly released report.
In the Lone Star State, the average entry fee for all contract types is $528,194 on the high end and $130,579 on the low end. That’s according to an analysis of 32 providers undertaken by investment bank Ziegler and My LifeSite, a developer of web-based tools and resources to help consumers choose CCRCs. The organizations have partnered to put out state-by-state CCRC reports; Texas is their third, following reports on Maryland and Virginia.
In those states, the average high and average low entry fees exceeded the Texas numbers. In Virginia, the average low was $150,240 and the average high was $540,289. In neighboring Maryland, the average low was $158,043 and the average high was $591,228.
While Maryland and Virginia are smaller states than Texas, they have similar numbers of CCRCs that were considered for these reports. For Maryland, the report included 34 entry-fee CCRCs, and Virginia’s report considered 48 providers.
Median net operating margin in Texas was 12.9%, compared with 6.9% in Maryland and 1.9% in Virginia.
However, the median total excess margin, which includes both operating and non-operating sources of revenue and expenses, dipped into negative territory in Texas: -3.4%. That number was positive in both Maryland (1.2%) and Virginia (4.2%).
The Maryland data was current as of November 2015 and the Virginia data as of May 2016. The Texas report was released Monday and includes data current as of January 2017.
While the reports do not delve into specific market conditions in these states, they are meant to paint a picture of how CCRC performance can differ depending on local factors, Ziegler Vice President of Senior Living Research and Development Lisa McCracken told Senior Housing News after the Virginia report was released last August.
Written by Tim Mullaney