Thanks for posting. Article mentions there are a total of 1900 CCRC’s with 900,000 residents. That is huge. One comment mentions that a CCRC has not returned refund to heirs, as stipulated in contract, for over 3 years saying that vacant apartment is not occupied yet.
The need for doing a thorough due diligence is obvious.
Here is an article on the troubled Charlotte area CCRC and what to look for when vetting communities.
One lesson is to keep an eye on the financials after you move in, and involve the state overseer if things don’t look right. At my CCRC we get an updated Financial Dashboard every couple of months, including Operating Income or Loss, Days Cash on Hand, Debt Service Coverage ratio, etc.
The complicated financing of these retirement communities can also put a strain on the services offered. My relative’s continuing care place is nice, but the food is pretty bad—the chain spends only 53% on services according to their nonprofit 990 filing while the CEO makes $1.5 million a year. The food service is contracted out to a financially troubled national healthcare catering company for over $20 million a year.
I found the piece very scary. The man in the photograph has a background in finance as do his two sons. They all went through the financial documentation carefully, but that clearly wasn’t enough. In addition, some of the people who commented on the article also mentioned the difficulty they had dealing with the financial data at other CCRCs. And this all happened in NYS where I’d guess there is some regulation of the industry.
The article says: “But in 2023, the Harborside, for the third time since it opened in 2010, declared bankruptcy.”
Why would someone, who supposedly has some financial savvy, move there?
In North Carolina CCRCs are required to file detailed financial and management “Disclosure Statements” in a specified format with the NC DOI. These are available on the DOI website, and CCRCs are required to provide a copy to prospective residents. That is how I discovered that one CCRC I was considering didn’t own its land and buildings, and that another was, at that time, operating at
Thanks for posting. Article mentions there are a total of 1900 CCRC’s with 900,000 residents. That is huge. One comment mentions that a CCRC has not returned refund to heirs, as stipulated in contract, for over 3 years saying that vacant apartment is not occupied yet.
The need for doing a thorough due diligence is obvious.
Here is an article on the troubled Charlotte area CCRC and what to look for when vetting communities.
One lesson is to keep an eye on the financials after you move in, and involve the state overseer if things don’t look right. At my CCRC we get an updated Financial Dashboard every couple of months, including Operating Income or Loss, Days Cash on Hand, Debt Service Coverage ratio, etc.
The complicated financing of these retirement communities can also put a strain on the services offered. My relative’s continuing care place is nice, but the food is pretty bad—the chain spends only 53% on services according to their nonprofit 990 filing while the CEO makes $1.5 million a year. The food service is contracted out to a financially troubled national healthcare catering company for over $20 million a year.
I found the piece very scary. The man in the photograph has a background in finance as do his two sons. They all went through the financial documentation carefully, but that clearly wasn’t enough. In addition, some of the people who commented on the article also mentioned the difficulty they had dealing with the financial data at other CCRCs. And this all happened in NYS where I’d guess there is some regulation of the industry.
The article says: “But in 2023, the Harborside, for the third time since it opened in 2010, declared bankruptcy.”
Why would someone, who supposedly has some financial savvy, move there?
In North Carolina CCRCs are required to file detailed financial and management “Disclosure Statements” in a specified format with the NC DOI. These are available on the DOI website, and CCRCs are required to provide a copy to prospective residents. That is how I discovered that one CCRC I was considering didn’t own its land and buildings, and that another was, at that time, operating at