senior living

What's in a name? At last week’s LeadingAge, CCRCs became Life Plan Communities. The change was made because "continuing care" implies a setting where older adults are being cared for. (Duh.) And apparently 84% of consumers younger than 65 didn’t know what a CCRC was.  Probably young folks also didn’t get it when AAHSA became LeadingAge in 2011. To the outside observer who last attended in 2010, the LeadingAge conference seems unchanged, and the business of the members? Also unchanged. The book of session topics, exhibit hall booth purchasers, and the roles of executives attending – appears to be the same old, same, as it were, old – not-for-profit CCRCs, uh, Life Plan Communities. Oh, and the for-profit equivalent, ALFA, will not to be outdone namewise - that association is now called Argentum (Latin for 'Silver').

Louisville, Kentucky is the aging-industry capital of the United States. The city is a very big player in long-term care, host to a variety of "headquarters in nursing home, rehabilitation, assisted living and home health administration." Last week the city (and a variety of its long-term care industry sponsors) ran an industry summit that included two days of sessions and a bevy of live pitches. It is striking to contemplate the simultaneous growing blur and yet near-complete disconnect between health-related innovations involving doctors and the world of aging care. There has long been a need for disruptive innovation in the long-term care industry -- which, like the health care industry overall, struggles with lower reimbursements, which in turn have resulted in further industry consolidation.

You would have to read this to believe.  RANT ON.  It pains me to actually link to the original article, because that was, of course, this real estate company’s goal – so this link is to the link that has the link.  Nela Richardson, the first chief economist with hot real estate website Redfin, has announced that cities with Uber, Rover, Porch, Instacart and CareLinx provide the most economical and 'tech-enabled' alternatives to assisted living.  How’d that get calculated, you might ask? Seniors or their caregivers "would have at least $1,500 each month to spend [after accounting for the mortgage] on the cost of services booked through Uber, Rover, Porch, Instacart and Carelinx versus the $5,933 it would take to live in an assisted living facility."

Builders like to build – and investors like it too.  Does it surprise anyone that there may turn out to be unoccupied senior housing units in the future? That the supply may have been overbuilt for the level of future baby boomer enthusiasm for this type of housing?  "The occupancy rate for all senior housing in 31 major markets fell this spring for the second consecutive quarter." And shares "have tumbled down" in the real estate companies that, interestingly, continue to build. So what’s going on? Certainly, the old refrain of '10,000 baby boomers turning 65 every day' (beginning in 2011) has not proven to be a market strategy.