Continuing Care Retirement Community (CCRC)
Simply put, a Continuing Care Retirement Community facility would be a retirement community offering several levels of senior living solutions on one campus as opposed to stand-alone facilities in each area of support of seniors:
- Independent Senior Living for people don’t need personal assistance.
- Assisted Senior Living for those requiring a some help with daily living activities.
- Skilled Nursing and potentially Rehabilitation (short/long-term) via a local or local Health Care Center (HCC) and partnership with local medical providers.
CCRCs typically offer one of three general types of contracts that involve different combinations of entrance and monthly fee payments. Some CCRCs may offer residents a choice of the following contract types, which vary state by state to a degree depending on licensing, while others may choose to offer only one. Below are examples specific to a single state but fairly typical nationwide:
- Type A, extensive or Life Care contracts, include housing, residential services, and amenities—including unlimited use of health care services—at little or no increase in monthly fees as a resident moves from independent living to assisted living, and, if needed, to nursing care. Type A contracts generally feature substantial entrance fees but may be attractive because monthly payments do not increase substantially as residents move through the different levels of care. As a result, CCRCs absorb the risk of any increases in the cost of providing health and long-term care to residents with these contracts.
- Type B or modified contracts often have lower monthly fees than Type A contracts and include the same housing and residential amenities as Type A contracts. However, only some health care services are included in the initial monthly fee. When a resident’s needs exceed those services, the fees increase to market rates. For example, a resident may receive 30, 60, or 90 days of AL or nursing care without an increased charge. Thereafter, residents pay the market daily rate or a discounted daily rate set by the CCRC for all AL or nursing care required. They face the risk of having to pay high costs for needed care.
- Type C, or fee-for-service contracts, include the same housing, residential services, and amenities as Type A and B arrangements but require residents to pay market rates for all health-related services on an as-needed basis. Type C contracts may involve lower entrance and monthly fees while a resident resides in IL, but the risk of higher long-term care expenses rests with the resident.
The average CCRC entrance fee nationally is $248,000. (This average fee, however, factors in CCRCs in destination locales that may have fees well in excess of $1 million.)
Contact Us for more information if you are considering developing a Continuing Care Retirement Community project or will be operating a project and need help with marketing or occupancy.