Ziegler: 7 trends for senior living in 2016

Share this content:

The Federal Reserve's recent and planned increases in interest rates make early 2016 a good time for senior living organizations to take advantage of low borrowing rates, according to Ziegler.

Key trends for not-for-profit providers in 2016, according to the specialty investment bank's “Z-News” senior living finance newsletter:

  1. Growth in strategic affiliations, driven by the complexity of healthcare reform, technology demands, increased competition and leadership turnover;
  2. More joint ventures and partnerships, as a quick means of achieving growth;
  3. Continued technology efforts related to operational efficiency and resident care, and the creation of more executive-level positions related to the advancement of technology;
  4. Joint ventures to meet the needs of older baby boomers seeking home- and community-based services;
  5. Expansion of existing communities, or the creation of satellite campuses, using “land-banked” property nearby;
  6. Enhanced corporate oversight related to staff recruitment, retention and succession planning; and
  7. Accessing capital with low borrowing costs, before gradual rate increases. “The tax-exempt fixed-rate bond market is very favorable for senior living organizations to borrow at record lows, whether for rated organizations or strong unrated credits,” Ziegler says.

Sign up for newsletters

In Focus

Feb. 21

Handmade holiday

Rochester, NY

Residents of St. John's recently were surprised with handmade Valentine's Day cards and gifts from local elementary school students.