Tuesday, January 15, 2008

Retirement Communities: KNOW WHERE YOUR RENT MONEY GOES !!

Retirement communitites seem like a great idea on the surface: like a cruise ship for seniors. Social opportunities, wellness opportunities, fine dining, maintainence services, housekeeping; some have nurse stations, and full time LVN's (most have CNA's, or none at all). The largest budget in these communities ? You may be suprised to discover that over 40-50% of the operational dollars go to marketing, not to real services that your parent would ever directly benefit from. The reason is simple, senior residents move into these communities when they have an average of 5 years left to live. When a resident dies, an apartment becomes empty, and the corporate revenues shrink. And some corporations have silent partners (investors), who do not appreciate declines in occupancy levels. Less occupants, less profits.So, I have come to understand that the mission of most of these communities is NOT to keep your parents well served with cruise ship five star services, no matter what they say to you, during your "free" marketing tour and lunch. The corporate mission is to keep the building full, create large revenues, purchase more properties, turn them in to more goldmines. The for profit company that I mentioned above, proudly announced, at the 2006 dietary conference for the directors, that they made a NET profit of $11 million dollars with their 23 properties nationwide. Some buildings went much of the year below full occupancy. You can just imagine the profit at full occupancy.I am not alone in my understanding of just how senior living communitites operate. But, people on the inside of the industry, do not speak up because: they are care-givers, and need these jobs. Some, like me, become disillusioned care-givers, and leave the industry. I am really shocked that more do not speak about life inside senior living. There are many things I discovered in my tenures, that have turned me off to retirement communitites as a viable future option for aging adults. I have not even touched on the average direct care-giver to resident ratios of 1 to 20 :at the very best. Higher corporate costs drive operational changes that should concern adult children seeking quality residential solutions to caring for their aging parents. I do not believe that all upscale retirement communities really fulfill their care giving promises: and today there are alot of other alternatives you should also consider.For this much rent ( and more), similar services, are offered for this inclusive price: you should, and do expect five star level housekeeping, fine dining complete with special holiday programming; wellness programs that focus on fall prevention, strength training, and balance education for your parent; maintainence (toilets do have their problems, so do air conditioners/heaters,elevators). Every year, you can expect 5-7 % cost of living increases in these communities: whether you like it or not. And trust me, the corporation can always defend the reasons for the increase. You will have only the choice to pay or move.Retirement communities ususally bill themselves as housing for independent living residents: those with minimal mobility and functionality issues. But in the last twelve years, I have seen less truly independent residents, and more highly dependent, borderline assisted living or early dementia type residents move in. The corporation is motivated simply by the drive to keep the place full. This creates a great demand on service personnel, often untrained. If your parent is very independent, it can be depressing. Your high functioning parent may be seated in the dining room, at dinner, with someone with incontinence issues. Or worse. Because of the neediness of some residents brought into independent living communities by marketers attempting to fill the building, and the demanding care giving ratio, and the low budget for services, and the high corporate costs for corporate overhead, you may get more services, of a better quality, in smaller board and cares, than you will in large retirement communities. Retirement communities have a huge socialization advantage: alot more prospective playmates for your parents. But they are not for everybody. Make sure to take an industry savvy professional along with you while you are touring, and examining what you really ARE getting for your rent.