Continuing Care Retirement Communities

Continuing Care Retirement Communities

Overview

The 3,800 firms classified as continuing care retirement communities (CCRCs) in the US operate 5,400 facilities. Of these, about 38% are assisted living facilities with on-site skilled nursing facilities. About 50% offer independent living, assisted living, and skilled nursing services either on campus or at nearby facilities. These facilities involve a contract each resident signs, entitling them to a continuum of care in exchange for payment of an entrance fee and ongoing monthly fees.

Sensitivity to Capital Markets

Difficulty in obtaining financing or in re-financing existing debt can force CCRCs to delay needed renovations, postpone planned expansions, or prevent them from breaking ground.

Demographic Trends Grow Demand

Since January 2011, baby boomers have been turning age 65 at a rate of 10,000 per day - and this will continue for 20 years.