Entry-Fee Consulting
Entry fees are no longer a financial vehicle only available to
non-profit owners and operators of seniors housing facilities.
As an operator or owner, you have a fiduciary responsibility to
provide your residents with not only the best quality of care and
services, but also the best financial arrangement for funding their
stay. An entry-fee option will provide both you and your residents
with the best deal financially in almost all independent living
settings.
From the analysis of multiple entry-fee programs throughout the United States and numerous case studies, Tellatin, Short & Hansen has developed a comprehensive entry-fee program that can be specifically tailored for your facility.
Resident benefits:
- Low monthly service fee more in line with a resident's actual monthly income.
- Preservation of a resident's estate.
- Provides a real and measurable rate of return to the resident as a member of your facility.
- Under a type A or B entry-fee option, a portion of entry fee and service fee is tax deductible in most cases as a medical expense.
Owner and investor benefits:
- Lower annual turnover and higher sustainable occupancy due to the increased potential resident pool for the facility and longer length of stays.
- Strong balance sheet.
- Limits or eliminates the need of mortgage funding lowering investor risk without sacrificing returns to the equity investor.
- Higher internal rate of return or cash-on-cash return to the equity investor.
Entry-fee services include:
- Analysis of competitive facilities in your market in order to assist in establishing a marketable and competitive program.
- Analysis of socioeconomic conditions in your market in order to assist in the establishing entry fee and service fees at levels producing sufficient demand to support the program.
- Actuarial analysis and forecast in order to establish a sustainable program whereby reducing the risk of future operating cash shortfalls.
- Establishment of entry fees and services fee program.
- Outline successful marketing strategies for entry-fee units.
- Marketing brochure outlining marketing tactics for entry-fee units.
- Reserve requirement recommendations to fund future resident refunds.
- Perform annual analyses to determine if adjustments to the entry-fee program are necessary at the facility for the first two years after the implementation of the entry-fee program.