HOW TO AVOID OVERBUILDING ASSISTED LIVING.The nightmare of any assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. developer is a half-empty facility that stays that way. Market saturation In economics, "market saturation" is a term used to describe a situation in which a product has become diffused (distributed) within a market; the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology. is a genuine threat in many metropolitan areas throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . At a recent National Investment Center conference, consultant Joseph T. Howell How´ell n. 1. The upper stage of a porcelian furnace. offered specific guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. for sizing up a competitive market and determining whether a particular project will fit in. THE FOUR SUMMIT QUANTITATIVE GUIDELINES * The ratio of the population 65+ and 85+ to the number of nursing and assisted living beds in the primary market area (PMA PMA (papillary-marginal-attached), n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation. PMA Progressive muscular atrophy ). * The number of the 85+ population in "Group Quarters" in the PMA. * The number of new beds coming on line each year in a PMA as a percentage of the number of occupied AL beds in the PMA in the previous year. * The average occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) in the PMA for the year in question. The average occupancy of the PMA compared to last year. PMA absorption compared to last year. Number of properties with slow lease up.
GUIDELINE NUMBER 1
Caution flag should be raised if:
Nursing beds per 65+ population exceed 4.9%
AL/BC [*] beds per 65+ population exceed 2.3%
Or the total of both exceeds 7.0%
AND/OR
Nursing beds per 85+ population
exceed 49.0%
AL/BC beds per 85+ population
exceed 23.0%
Or the total of both
exceeds 70.0%
(*.)BC = Board and Care
GUIDELINE guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. NUMBER 2 Caution flag should be raised if: The percentage of 85+ population in PMA living in nursing and AL/BC exceeds 23% of the 85+ population. Calculation of 85+ population living in "Group Quarters": 35% of occupied nursing beds = x 35% of occupied BC beds = y 50% of occupied AL beds = z The sum of x + y + z and the total 85+ population = [greater than] 23% GUIDELINE NUMBER 3 Caution flag should be raised if: New AL/BC beds within a PMA = [greater than]20% or more than the existing and occupied AL/BC beds in the previous year. * NEW market 20% ([less than]3 AL projects) * GROWING market 12% (3-6 AL projects) * MATURING market 5% (7+ AL projects) GUIDELINE NUMBER 4 Caution flag should be raised if: The average occupancy rate in the PMA is 86% or below (nonweighted) for projects open 2 years or longer. * The average occupancy in the PMA is less than the previous year. * Absorption in the PMA is less than the previous year. * 1 + AL project (30+ beds) has move-in of [less than]2 units/month after being open at least 6 months. |
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