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All About Energy

How to Make the Most of Your Assisted Living Facilities Budget

Eli Sachs Jun 16, 2016 9:45:00 AM
Eli Sachs
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Assisted LivingOver the past hundred years, modern medicine has accomplished significant breakthroughs, giving people the chance to nearly double their life expectancy. With these advancements, senior living facilities are growing rapidly in popularity, but at what cost?

 

After retiring, we want to maintain our independence, and have easy access to services. In the past, however, senior and assisted living centers focused solely on being a place for those who are advanced in age to reside, so accommodations were a bit Spartan. 

Active Senior Living Centers are the hottest trend sweeping the community. Developers are building new, state of the art communities with onsite medical staff and facilities, shopping, dining, activities, and social events. [1] With an increase in activities and services, and with the rising cost of health care, it's getting harder to make them affordable. Senior Living Centers usually include these costs in the residents' "monthly service fee". However, some expenses aren't passed on to the residents, such as rising electricity and utilities costs.

 

Benefit the bottom line with energy procurement for your assisted living facility. Get a free energy quote today.

 

Competitive Advantages

Assisted living facilities are one of the fastest growing sectors in the long-term health care industry. There are over one million senior residents currently living in them, and it's is set to double by 2030. Builders are developing these communities so quickly that developers are scrambling for ways to stay ahead of the curve.

 

One of the major issues facing senior living is the age of the physical buildings in these communities themselves, according to Jim Moore, president of Moore Diversified Services (a senior housing consulting firm). [2] Even if the service is top-quality, an outdated facility isn't as desirable to potential residents. Remodeling and updating existing facilities is crucial in attracting new clients and retaining your clientele.

 

Rising Costs

Assisted living facilities can set themselves apart with competitive pricing. The cost of assisted living facilities have increased by 5% in the last 5 years, but costs for them have only increased by 3%. Despite this, the government only increased social security disbursements by 1.7%. With a changing insurance and social security landscape, the cost of the living centers could skyrocket. This trend in pricing could be harmful to the future of those who are retired. Assisted living facilities must act now.

 

How to Make Operations Affordable

One of the best ways to lower your fixed cost is with competitive energy procurement. We worked with one facility, Grandview Health Homes, because they needed quicker solutions than what power providers were capable of giving. Grandview renewed their electricity contract, but at a new low rate, saving them over $85,000 on electricity bills. 

 

To get ahead of the curve, assisted living facilities can cut operating costs by issuing a request for proposal (RFP). That way, providers compete for your business so you can get the best rate and contract for your facility.

 

References

[1] http://www.seniorliving.org/lifestyles/active-senior/

[2] http://www.seniorshousingbusiness.com/industry-voices/24-industry-voices/five-high-priority-issues-for-senior-living-in-2015

 

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Topics: Electricity, Budgeting, Procurement, Assisted Living