Defining the Market Area The first segment of this multi-part blog series established that market studies require particular attention as a critical component of the seniors housing development planning process. In this second segment, we’ll touch upon common methodologies, and uncover fine points that can increase the accuracy of a market study.
Today’s consumers have high expectations. They demand quality products and services delivered in a timely, cost-effective, and convenient fashion. That’s why evidence-based quality measures have become so crucial, especially in the seniors housing and care industry. Consumers want a way to judge whether they can expect to receive high-quality care in a comfortable setting. Likewise, hospitals, physician groups, payors, and even lenders want proof that the care being provided creates better outcomes at a lower cost.
The NIC Map Data Service recently released national benchmark data through year-end 2016 for actual rates and leasing velocity. Key takeaways include: Average initial rates were below average asking rates for both independent living and assisted living properties, with monthly spreads larger for assisted living properties throughout the entire reported period.
About one-third of Medicare beneficiaries are enrolled in managed care today, and nearly half of all seniors are expected to be enrolled within the next 10 years. With that sobering statistic in mind, senior care operators need to understand the opportunities presented by the rapid expansion of managed care and the challenges that lie ahead.