Does it really matter if a CCRC is For-Profit vs Nonprofit?
This week we’ll look more deeply into how the for-profit vs nonprofit status of CCRCs (Continuing Care Retirement Communities) and Senior Housing Communities impact the residents. This topic came up last week when we sat in on a sales presentation by a nonprofit LifeCare CCRC. The sales pitch proudly proclaimed its nonprofit status. This was shortly after discussing the CCRC’s recent bankruptcy reorganization for excessive construction debt. The presenter claimed the creditors suffered from the reorganization…..not the residents. As a nonprofit retirement community, they didn’t have to pay shareholders. We decided to explore this topic in more detail.
What does the for-profit vs nonprofit status say about the community?
Do we really believe nonprofit retirement communities better financially protect residents? No.
We don’t. We think it is far more important to focus on what you get for your money at any particular Community. We are unconvinced the for-profit vs nonprofit status has clear financial benefits for the resident.
For now, we think nonprofit status says more about the origins of the local sponsor.
We see no difference in the real estate, programming features or contractual commitments of nonprofit vs for-profit communities. It isn’t obvious that residents are getting more because shareholders are getting less.
We’re open to being persuaded. We’d love to hear from residents or managers. Share your insights and stories.
Our answer is not self-obvious. We may be in the minority with this conclusion. It is a complex topic and therefore we’ll explore the for-profit vs nonprofit topic all week. Part 1 starts tomorrow. Join us in this discussion! We’d love to hear from you! Share your comments below:
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