How to Make Affordable Assisted Living Work for You
#ALFA2014
WHAT IS AFFORDABLE ASSISTED LIVING? State Perspective Generally Called Assisted Living or Residential Care Requires Executive, Legislative and Program Support Medicaid Waiver(s) - Project vs. Voucher-Based Medicaid State Plan
Interest in AAL Growing Nationally
#ALFA2014
WHY IS AAL NEEDED? Demand 7% to 14% of households are headed by 75+ 40% to 50% of those households have incomes less than $25,000 38% of this population needs assistance with 3 or more ADL’s 15,465 nursing homes, 1,646,302 beds in 2011 (31,100 AL facilities, 971,900 units in 2011)
How to Capitalize a New AAL Affordable housing financing, LIHTCs, grants, low interest loans
Why Develop and Operate AAL? Expand customer reach deeper into existing markets
#ALFA2014
THE OPPORTUNITY
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WHAT SUCCESS LOOKS LIKE
Victory Centre of Vernon Hills, Exterior
Victory Centre of Vernon Hills, Living Room
Economic Benefits Development and management fees Free Cash Flows Long-term Ownership
#ALFA2014
KEY OPERATIONAL ISSUES 1. State/Federal Program Design? 2. Payment Rate? 3. Payment Cycle? 4. Role of Gatekeepers? 5. Barriers to Property Licensure/Certification? 6. Barriers to Medicaid Eligibility?
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WHAT SUCCESS LOOKS LIKE
St. Anthony of Lansing
Heritage Woods of South Elgin
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FUTURE OF AFFORDABLE ASSISTED LIVING Explosive Demographic Trends Managed Care Attempting to Bend the Cost Curve Incentivized Payor
Reckoning with Entitlement Programs Regulatory Expansion Pressure Keeping AL Defined as HCBS
#ALFA2014
Rod Burkett President & CEO, BMA Management, Ltd. rod.burkett@bma-mgmt.com 815-935-1992, ext. 230 Jerry Finis CEO, Pathway Senior Living, LLC jfinis@pathwaysl.com 847-768-5104 Wayne Smallwood Executive Director, Affordable Assisted Living Coalition wsmallwood@aalconline.org 217-525-0700, ext. 124
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