Because of the continued aging of the nation’s population, demand for senior housing is increasing across the country, and is projected to do so for many years to come. This dynamic is giving senior housing providers the opportunity to generate greater returns through increased occupancy rates and higher fees. Moreover, because memory care units generate higher room and care fees, many senior housing providers are focusing on this segment of the market in an effort to generate additional revenues and increase their net operating income.
As these revenues are realized and their financial position improves, providers are able to acquire capital on better terms from lenders and other financing firms which they can use for further growth and other purposes. The successful Chicago-based financing firm Cambridge Realty Capital is an example of one such firm that provides attractive financing to senior housing participants in this area. Providers and investors seeking capital for debt refinancing, acquisitions, or sale/leasebacks should contact Cambridge Realty Capital to learn more about the many different financing options it offers for these and other purposes as well.
Today, more than five million people in the United States have dementia, and that number is projected to increase as the baby boom generation gets older. These changes are increasing demand for memory care services, and giving senior housing providers the opportunity to care for more residents while boosting their bottom lines. A notable example of this can be found in northwest Ohio, where nearly 40,000 people have dementia. In an effort to meet the needs of this population, senior housing providers spent the past few years building new memory care communities in the area, while also adding new memory care units to existing assisted living communities in the area. In an effort to show family members just how dedicated they are to caring for dementia residents, some providers even built memory care facilities with special units that provide an extra layer of protection, security, and supervision for people with advanced memory care needs. These units require a key to get in and out, and additional monitoring takes place to ensure the residents in these units are always safe.
In addition to building new communities that are entirely devoted to dementia residents, some providers in northwest Ohio are renovating their existing assisted living communities. These renovations include adding memory care units, rehabilitation areas, and skilled-nursing areas so that residents can age in place. This is advantageous for both the resident and the community: the resident need not go through the disruption and expense of moving into a new community, and the community maintains its occupancy level while continuing to generate revenue from the higher fees associated with memory care units.
Some of these communities also include adult day care centers for non-residents. These centers serve to benefit the people who use them, and communities can use them as marketing tools to attract potential residents considering transitioning into a memory care facility.
As the nation’s demographics continue to change, an increasing number of providers are taking advantage of the opportunities these changes are creating in the memory care space. To date, it appears these changes paying off well for providers and their residents, and the hope in the industry and among family members is that this will continue to be the case. Seniors in need of memory care services now have a number of positive options to choose from when the time comes to transition into a memory care facility. Providers, for their part, are better able to meet the needs of residents and their family members, and are earning the higher fees associated with memory care units while improving their net operating income.