Continuing Care Retirement Communities (CCRC) Fact Sheet

Today’s CCRC

• Approximately 1,850 CCRCs exist nationally
• 82% have not-for-profit sponsorship
• Nearly 50% are faith-based; others may be university-sponsored, health-system sponsored, military based or fraternal
• Most CCRCs have less than 300 total units
• CCRCs may be located across a range of geographic areas — rural to urban
• CCRCs may be single-campus organizations (37%) or may be part of a health system (56%)

The CCRC Advantage

• Social Interaction — A home-based support network and social programs for aging in place
• New Lifestyle — Much more freedom, choice and relaxation than moving to an apartment
• Activities and Programs — Preventative, holistic care; on-site fitness programs
• Peace of Mind — Health and social well-being concerns of the resident and family are met
• Continuum of Care — No need to move for supportive services — they’re available on site
• Estate/Strategic Financial Planning — Numerous options exist to meet individual’s finances
• Personal Responsibility for Care Costs — Reduces consumer reliance on limited Medicaid dollars
• Dining Options — From snack bars to upscale dining — the meal choices are many
• Tax Advantages — Deductions for prepaid medical expenses, etc. are allowable
• Transportation — Available for physician visits, religious services, shopping and more
• Low-Maintenance Lifestyle — Shed those homeowner concerns and be able to enjoy your free time
• Social Accountability — Charity fund availability and community service involvement

Not-for-profit CCRCs offer housing, access to health services and financial security to their residents. The entrance-fee model of CCRCs presents an insurance- like, risk-sharing dimension that is unique to not-for-profits. It demonstrates the best of managed care... maximizes use of residents’ own resources and minimizes their reliance on government payments, particularly Medicaid. Financial security is provided by a combination of entrance fees and the risk-sharing nature of the CCRC model."

Standing the Test of Time

Numerous AAHSA members have provided mission-driven, not-for-profit services to seniors for generations - some dating back to the early 1 800s. Many were pioneers of the CCRC model decades ago and continue to develop and operate the most successful, innovative CCRCs in this country.

Financial Stability

Over last 20 years, only 2 percent of CCRCs have experienced financial insolvency or bankruptcy. In these rare cases, troubled communities are usually purchased and rehabilitated into a successful operation. Most states have laws and regulations to establish standards and monitoring of CCRCs, thereby protecting its residents.

Today’s Economy

As with virtually all other service providers, the current economic downturn has impacted CCRCs; however, it’s important to note that the vast majority of CCRCs remain financially stable and are not at risk of financial distress. CCRC operations remain strong, occupancy continues within the 88-93% range that has existed since January 1, 2000, and the rate of new admissions remains steady.

Performance

In addition to state oversight, many CCRCs are accredited and/or adhere to independent performance measures to maintain a strong operating profile. CARF-CCAC accreditation indicates that a CCRC strives to improve efficiency, fiscal health and service delivery—creating a foundation for continuous quality improvement and consumer satisfaction. Financing mechanisms such as tax exempt bonds have very stringent performance standards as well, and require routine assessment of operational performance measures.