Continuing care retirement communities have higher occupancy rates than other senior care segments, but they are not eager to keep their skilled nursing units, a report from commercial real estate firm CBRE Group finds.
SNF levels are dropping due to healthier seniors, shorter time spent due to declining Medicare/Medicaid reimbursements and more care in non-SNF settings, the summer report said.
Some CCRCs, also called life plan communities, are converting their SNF units into rehab facilities and creating more private rooms, the report revealed. Such adaptability bodes well for the communities’ future, experts said.
“The current strong market conditions — relatively high occupancy, rent growth outperforming other seniors housing sectors and somewhat limited new supply — position CCRC/LPCs for solid performance in the near term,” the authors note. “The baby boom demographic wave should have an enormous and very positive impact on the market by creating considerable new demand for CCRC/LPC product.”
Lancaster, PA; Baltimore; and San Jose, CA, are leading metro areas for occupancy, the report found.