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When you evaluate a retirement home for a loved one, you are likely to consider the standard of care delivered, the attractiveness of the facility, how friendly the staff is, how convenient the home is to where you live, and other qualitative characteristics.
You should also consider the financial sustainability of the home. You want to avoid homes that are stretched financially to avoid the deteriorating care that would likely follow. Further, you want to avoid having to move your loved one again in the future.
Demand for retirement homes has fallen because of the economic weakness of 2008-2009. This weakens their financial condition and should heighten the concern of potential new residents.
Here are methods of gathering information to assess the continuing viability of a home.
HOMES IN GENERAL
Generally, retirement homes are overseen by state agencies. Ask the home what agency oversees them. Go to the agency's Web site and see what information you can find. Agencies generally grade the homes. Take a look at the Web site known as http://www.carepathways .com for ratings on homes. Ask the home to show you their last written review.
Is the home accredited? Some homes choose to get accredited by the Continuing Care Accreditation Commission (CCAC). Nationally, only about 15% of retirement homes are accredited.
Staff turnover in management is a good indicator of a stable business. How long has the management been there?
What is the occupancy rate? Ask what their break-even occupancy is. Ask how they came through the 2008-2009 period. If they tell you everything is wonderful, I would doubt it. Break-even occupancy is probably in the range of 88%-90% occupancy. One or two percentage points of profitability produce a big dollar difference to the owner. Why does this matter? If it is a "for profit" and the owners are consistently losing money, they will either look to sell or reduce services to cure their losses.
How much have the monthly charges or service fees risen each year? Ask if there is any reason why this increase would change in the future. Is the building going to require extraordinary maintenance?
Is there a lot of local competition? Where does this retirement home fit in relative to others locally? Is it the most expensive?...