Many will say that to undertake the setting up of an Assisted Living Facility is a rewarding undertaking. Yet others will say it is a most challenging undertaking, however whichever way we may look at it we can all agree that it is a most complex undertaking.
Let us first define what is an Assisted Living Facility (ALF) and what kind of occupants will be most in need of one. ALF’s are mostly housed by females who are around 87 years of age, and who are in need of assistance with two or more of their ADL’s ( action of daily living.) There are six of them and when an individual cannot perform two or more of them they can be placed in a care facility to be looked after by others. This decision is usually made by their primary care physician in conjunction with their relatives and family.
ALF can be seen as daily living activities; things such as bathing, cooking, etc. ALF’s are not to be confused with (SNF’s) which are Skilled Nursing Facilities. Many folks have their loved ones shaunted to an SNF when they could have been sent to an ALF. To fully appreciate the difference between the two of them will take some research. However here we are concerned with setting up an ALF; the cost and all that goes into it from planning to actualization.
When you set out to establish an ALF facility the first thing should be your planning. A thorough research in the AFL facilities in your chosen market area would be a good place to start. What is the demographic in your chosen area? What is the size of the elderly population? Is it increasing? How many facilities are there in the county or the town? Is there any unmet demand? Usually the state or county determines the amount of facilities that can be setup in the town and the proximity to each other.
There are regulatory requirements that have to be met about licensing, zoning, staffing and other conditions that vary from state to state. One of the most important tasks that must be undertaken is the establishing of a Business Plan. You will need to establish your finances, this is where all the different costs will be addressed. Costs such as operational costs, marketing costs, anticipated pricing and staffing costs; this is where they all will be addressed.
In whatever state you are considering setting up your ALF it must be born in mind that ALF’s are subject to the strictest regulations and licensing requirements. Research into the senior market is crucial and in doing your market plan of special concern will be your target market. Not only must you consider your target market but your labor market is just as important. Staff turnover within this area is listed as being very high. Some great places that ought to be placed on your list of must visit, would be Genworth the Insurance Company, CareAcademy TRUiC and CareAcademy on senior care.
To see that your enterprise remains a profitable one you will have to continually be marketing. Attracting new residents and maintaining high occupancy rates means that you will need to reach out to your wider community, all the while building trust as an ever ongoing process. People it appears are programmed to complain and to find fault, therefore in managing the day to day operations and the emergencies that come along one must always seek to maintain a cheerful positive environment, not easy but a must. Recruiting staff and training them can be quite a task, something that you can never see as done. It will have to be seen as an ongoing work that never ends.
Occupants Long before an occupant moves in you should have been acquainted with their family, their condition and all that is necessary for a smooth transition to your facility. The less surprises and the less disruption there is the better functioning would be your facility. Remember that while your facility is doing great work by assisting the elderly and those who are nearing the end run. If you are not earning a profit you are just avoiding the end of your facility as well. No need to tell you that top class personalized care for occupants must be balanced with business efficiency.
If you plan to purchase an existing ALF then all that you might need is the financing, if not then there is still quite a ways to go. Doors have to be widened the same as baths lots of adjustments have to be made. A good place to get some guidance would be the National Center for Assisted Living: https://www.ahcancal.org/ncal/. Your State's department of Human Services: it probably goes by another name, but however it is called there would be some department that oversees just how the elderly are taken off in the various facilities that are constructed for their safe keeping.
Business Guru reported in 2023 and updated on January 31 2024 that the ALF market is on the rise with a compound annual growth rate of (5.53%) 2023 to 2030. They believe that now is the best time to get into the business. How does one enter the ALF industry? What does it cost to do so? Well depending on whom you ask it is very expensive or considering what’s at stake it is just the normal cost of doing business. Business Guru reports that it costs a small facility about 1M while one of about 100 beds will cost about 10M.
The market once again; drawing upon their numbers is at present about $91.8B. With family caregiving in decline, maybe this just might be the right time to enter. Loans can be had via SBA funding also depending upon your location Government grants might be available. There are always private loans that’s available and with this much on offer many folks will gladly join together to form an LLC company.
To establish an ALF is something that takes time, sometimes a lot of time. It is way easier to purchase an existing one than to set about building one. You will have to obtain all necessary state and local licenses plus permits. Permits are necessary even for renovations of the selected property.
Now this was not intended to put you off but rather to help you understand that while it looks as quite a lucrative business field to venture into; there are some obstacles to overcome. If you believe that you do have what it takes then by all means do so.
Now having taken a good look at all that’s involved you are still determined to push ahead; we need to talk.