Developing Affordable Assisted Living in Iowa

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Developing Affordable Assisted Living in Iowa

• Analyzing the Market
• May 2005

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How does affordable assisted living differ?

• It was created to serve low-income people from
  the start
• Service plans are flexible and based on the
  tenants individual needs
• Rent, board and services are separate so that
  tenants can access multiple funding sources
• Partners willing to commit enormous amounts of
  time and energy overcoming obstacles and finding
  solutions to make the program available to even
  the lowest income people

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Thinking about affordable assisted living?

• Complete market study to determine the need for
  affordable assisted living in your market area
• Use County-specific Census Data
• Affordable assisted living programs should be
  targeted to Medicaid waiver-eligible individuals

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Who is our potential customer?

• The majority of assisted living tenants are
  widows, age 82 and older, with assistance needed
  for two or greater activities of daily living
• Very few people age 55 to 75 move into assisted
  living however, this age group may be a
  predictor of future market demand

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Who is our potential customer?

• When predicting demand, a reliable measure is
  that 2-3 of those age 65 and older will choose
  to live in assisted living
• A reliable measure of those age 75 and older is
  4-6 will choose to live in assisted living
• Nationally less than 10 of seniors live in a
  nursing facility, and many of your potential
  customers will have a similar level of personal
  care needs to residents who reside in a nursing
  facility

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Who is your potential customer?

• The Census data addresses income, but not assets
• When predicting who will move into an affordable
  assisted living, look at customers at 50 or less
  of area median income (these are the most likely
  to qualify for Medicaid waiver from an income
  perspective)

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Who is your potential customer?

• Renters vs. homeowners are more likely to move to
  an assisted living property
• Information on disability (sensory, physical,
  mental, self-care, or ability to go outside home)
  is a predictor of potential customers

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Purpose of a Market Analysis

• Assess the short term (gt5 years) demand for
  assisted living within a given market
• Provide an overview of the community in which the
  ALP will be located
• Provide preliminary guidance for marketing the
  program once it is operational

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Five Key Components of a Market Study for
Assisted Living

• Identification of the geographical, social and
  cultural boundaries of the market area
• Enumeration of the households within the market
  area who need and can afford the proposed program
• Examination of current and proposed programs,
  within the market area, that will compete with
  the proposed program

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Five Key Components of a Market Study for
Assisted Living

• Estimate, based on market area and potential
  households, the penetration rates needed to fill
  the program or the estimated number of units
  marketable within the market area
• Qualitatively assess the marketability of the
  program given the current social, cultural and
  economic conditions of the market area

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Importance of accurate market analysis

• Inaccurate estimate of market weakens validity of
  analysis
• Invalid estimates might well result in a program
  that struggles to reach full occupancy
• Recent evidence may indicate a decline in
  disability rates existing census data may not
  reflect changing attributes of population (1990
  census)

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Conclusion

• Market study findings must be used with great
  care
• The market study is an important tool but is not
  the only tool in the decision-making process

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More important than the market study are . . .

• Reputation and experience of the owner and
  management
• Pricing
• Range of services available
• Amenities included in building
• Site and building esthetics

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Getting Started

• Use the planning process to create awareness and
  establish a base for future support
• Invite community leaders to have a role in the
  planning process
• Hold community meetings to educate on the
  assisted living concept and build consensus

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Getting Started

• Explain the difference between what is proposed
  and what currently exists in community (nursing
  facility, assisted living, independent senior
  housing)
• Understand the BIG PICTURE Incorporate into a
  general discussion on planning for housing and
  health related needs of the elderly

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Eight Questions about Elder Care in Your Community

• Preventive Care Are we providing our elders with
  the opportunities they deserve to remain strong,
  healthy and independent?
• Focus on Function Do we know how well our
  elders are doing, not just what diseases they
  have? Has analysis been completed on the ability
  of elders to do ADLs and IADLs?

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Eight Questions about Elder Care in Your Community

• Long Term Care What are the long-term care
  resources in my community and how well are we
  supporting families caring for frail elders in
  the home?
• Geriatric Assessment Do we have a mechanism in
  place to provide a comprehensive assessment of
  elders, in the clinic or in the community? This
  is a key to rational and cost-effective
  allocation of long-term care services.

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Eight Questions about Elder Care in Your Community

• Care at the End of Life Are we providing
  compassionate and competent care to those who
  medicine cannot cure?
• Knowledge Base Does our staff have the
  knowledge base needed to provide high quality
  care to elders?

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Eight Questions about Elder Care in Your Community

• Focus on Quality of Care Are we looking at
  elder-specific outcomes in our program
  improvement efforts?
• Resources Do we know where to look or who to
  call if we have any questions about elder care
  either clinical questions of questions about
  program development?

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Getting Started

• Establish a preliminary plan
• Select site. Do feasibility study.
• Establish preliminary budgets (Development Cost
  Proforma)

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Sources of Information

• www.ncbdc.org Request for Proposal for
  Affordable Assisted Living Market Study
• Market Analysis in Assisted Living presentation
  by Michael R. DeShane, PhD Concepts in Community
  Living, October 2002