How to Make Affordable Assisted Living Work for You # ALFA2014.

How to Make Affordable Assisted Living Work for You

#ALFA2014

WHAT IS AFFORDABLE ASSISTED LIVING?

State Perspective Generally Called Assisted Living or Residential Care

Requires Executive, Legislative and Program Support

Medicaid Waiver(s) - Project vs. Voucher-Based

Medicaid State Plan

Interest in AAL Growing Nationally

#ALFA2014

WHY IS AAL NEEDED?

Demand7% to 14% of households are headed by 75+

40% to 50% of those households have incomes less than $25,000

38% of this population needs assistance with 3 or more ADL’s

15,465 nursing homes, 1,646,302 beds in 2011

(31,100 AL facilities, 971,900 units in 2011)

How to Capitalize a New AALAffordable housing financing, LIHTCs, grants, low interest loans

Why Develop and Operate AAL?Expand customer reach deeper into existing markets

#ALFA2014

THE OPPORTUNITY

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WHAT SUCCESS LOOKS LIKE

Economic BenefitsDevelopment and management fees

Free Cash Flows

Long-term Ownership

#ALFA2014

Victory Centre of Vernon Hills, Exterior Victory Centre of Vernon Hills, Living Room

KEY OPERATIONAL ISSUES

1. State/Federal Program Design?

2. Payment Rate?

3. Payment Cycle?

4. Role of Gatekeepers?

5. Barriers to Property Licensure/Certification?

6. Barriers to Medicaid Eligibility?

#ALFA2014

WHAT SUCCESS LOOKS LIKE

#ALFA2014

Heritage Woods of South ElginSt. Anthony of Lansing

FUTURE OF AFFORDABLE ASSISTED LIVING

#ALFA2014

Explosive Demographic TrendsManaged Care Attempting to Bend the Cost Curve

Incentivized Payor

Reckoning with Entitlement ProgramsRegulatory Expansion PressureKeeping AL Defined as HCBS

Rod BurkettPresident & CEO, BMA Management, Ltd.

[email protected], ext. 230

Jerry FinisCEO, Pathway Senior Living, LLC

[email protected] 847-768-5104

Wayne SmallwoodExecutive Director, Affordable Assisted Living

[email protected]

217-525-0700, ext. 124

#ALFA2014