According to a recent report by the National Investment Centers for the Seniors Housing & Care Industry, assisted living occupancy rates rose slightly in the second quarter of 2010. While it’s only a modest increase, occupany reached 87.7% overall, and according to Michael Hargrave, vice president of the NIC Market Area Profiles (MAP) service, demand is growing at a rate of approximately 7,000 units annually.
McKnight’s Long-Term Care News published an informative post on how providers can achieve greater success by matching demand to needs. To do this, healthcare providers should conduct an in-depth market analysis that includes a competitive analysis, overall industry trends and local market trends.
If you’re looking to expand your existing services or open a new facility, you should first consider the percentage of the local population comprised of seniors 65 and older. Beyond this, income levels of the senior population, payor sources, and general ability to pay are important considerations.
Demand is just one piece of the puzzle. Market supply also has a big impact on the success of healthcare providers. A saturated market, even if demand is high, means more competition, and this can drive both prices and occupancy rates down. Overall industry trends, such as the trend towards more flexible service offerings and a broader continuum of care (from independent living to skilled nursing and memory care, all from the same provider, for example), are important to consider when evaluating the competitive landscape.
Read the article from McKnight’s Long-Term Care News
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