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The CCRC Industry
For purposes of the Bethel Point Foundation business plan, the Continuing Care Retirement Community (CCRC) Industry is defined as providing residential supportive and health care services to seniors, typically age 70+, through a coordinated program that addresses their changing social, health and spiritual needs as they "age-in-place". Typically, these programs are developed on a single campus with facilities constructed in such a manner as to provide easy access from one component to another. Also typically, these programs entail a resident paying a market rate refundable "entrance fee" that functions like a club membership fee and is a proxy for buying a condominium unit. Residential living units are market competitive, fully appointed units, that range from small one-bedroom to two-bedroom with den units. Extensive common community facilities that include restaurant style dining options, fitness, meeting, chapel and activity function spaces plus dedicated assisted living / skilled nursing services are an integrated element of the community plan.
Demand for this type of living arrangement is great. The 70+ active senior market is a new and growing segment of our society that has evolved over the last two generations. Because of significant barriers to development, the supply of good quality CCRC projects is inadequate to serve the current and projected future demand. As the baby boomer generation reaches senior status, even the existing CCRC product will not meet the service and amenity expectations of this group. Not only are the numbers of age and income qualified seniors growing, but the frequency of their choice of a CCRC living option is increasing as well. On a national level, only approximately 3% of seniors now choose this option while in selected "mature" markets, such as the greater Philadelphia area, where CCRCs have existed for 25+ years and now number in excess of 40, the frequency of choice is in excess of 20%. As the national frequency of choice increases with awareness and supply and moves closer to the experience in mature markets, the impact will have a multiplier effect on future demand. |