Over the past 10 years, independent living and assisted living units have increased 2.5% each year, on average, in contrast to a steady decline in the number of skilled nursing beds. That’s according to data released Tuesday by LeadingAge and Ziegler.
After releasing a “sneak peek” at the top 10 operators in September, the agencies have released the full LeadingAge Ziegler 200 compilation of the country’s largest not-for-profit senior living multi-site organizations, government-subsidized housing multi-sites and single campuses, as well as new insights about the industry. The report is based on data gathered as of Dec. 31.
Most of the report’s 200 featured operators have grown primarily through expansion within existing campuses, as the number of units via new campus growth have slowed in the past few years since the economic recession. Approximately 65% of operators reported intentions to expand or reposition an existing campus in 2020 or 2021, according to the report. About 26% said that they intend to grow via the construction of new communities, whereas 28% responded “maybe” to this type of growth this year or next.
Recent years also have seen an uptick in the number of organizations growing through affiliation, acquisition or merger. For example, 10% noted that they intend to grow from affiliation, whereas 33% indicated they “may consider” affiliation in 2020 or 2021.
The report also showed that formal joint venture engagements marginally increased by 1% this year, with almost 34% of organizations reporting that they were engaged in a formal joint venture — most commonly with another operator, a health system or a home health / home care agency. Four out of 10 of the operators also indicated that they were engaged in a formal contract related to healthcare reform, whether it be an accountable care organization or a bundled payment agreement. This figure has grown steadily over the past, from roughly 25% in 2013 to 48% in 2019.
Read more about the latest LeadingAge Ziegler 200 report at McKnight’s Senior Living.
