A Sample Business Plan for an Assisted Living Facility

A consulting group in WY produced this business plan  for the Platte County Hospital District in 2011. The County, prompted by unnamed community leaders, saw the need for an assisted living facility.

The consultants did a market analysis for a 22 unit ALF. It was easy being optimistic while skimming through the 50 + pages included in the plan. They seemed to have everything covered: hard construction costs, land costs, staff wages, taxes, occupancy rates, marketing, etc. They also say the plan is available to anyone (public or private agencies) who wants to use it.

All well and good, but the initial costs and continuing success for the proposed facility will look drastically different depending on who builds and manages it. Private companies generally do not have the power to tax and only the largest of them issue bonds. The county has these tools at their disposal, giving them a distinct advantage. Labor costs would be higher if the county builds the ALF because providing full-time jobs w benefits to the locals is part of the rational for the project.

A private company would be less inclined to offer the same pay, hours or benefit package. Also, a public institution could run a debt for as long as politically feasible. A strictly private company obviously could not.

 

 

Updated 2/25: From the Billings Gazette:

CHEYENNE — Wyoming lawmakers are considering allowing assisted living facilities to provide a higher level of care for their residents so they can avoid having to move to nursing homes.

A House committee voted 5-4 on Tuesday to send the bill to the full House for debate. The Senate has already passed the bill, which is sponsored by Sen. Charles Scott, a Republican from Casper.

The bill would allow the facilities to care for people with open skin lesions, catheters and occasional bladder problems. It would also allow staffers to help those who need supplemental oxygen.

A representative of nonprofit nursing homes in Wyoming, Steve Bahmer, faults the bill for not also expanding inspections for the new level of care the facilities would be able to offer.

If the bill passes, assisted living communities would have a significant marketplace advantage over skilled nursing homes. The two would be competing for the same pool of residents (largely paying through private funds) with wide disparities in pricing. Assisted living is always cheaper than a skilled nursing home, part of which is regulatory and compliance costs.

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