How to Make Affordable Assisted Living Work for You

#ALFA2014

WHAT IS AFFORDABLE ASSISTED LIVING?

State Perspective Generally Called Assisted Living or Residential Care Requires Executive, Legislative and Program Support Medicaid Waiver(s) - Project vs. Voucher-Based Medicaid State Plan

Interest in AAL Growing Nationally

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WHY IS AAL NEEDED?

Demand 7% to 14% of households are headed by 75+ 40% to 50% of those households have incomes less than $25,000 38% of this population needs assistance with 3 or more ADL’s 15,465 nursing homes, 1,646,302 beds in 2011 (31,100 AL facilities, 971,900 units in 2011)

How to Capitalize a New AAL Affordable housing financing, LIHTCs, grants, low interest loans

Why Develop and Operate AAL? Expand customer reach deeper into existing markets

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THE OPPORTUNITY

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WHAT SUCCESS LOOKS LIKE

Economic Benefits Development and management fees Free Cash Flows Long-term Ownership

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Victory Centre of Vernon Hills, Exterior Victory Centre of Vernon Hills, Living Room

KEY OPERATIONAL ISSUES

1. State/Federal Program Design?

2. Payment Rate?

3. Payment Cycle?

4. Role of Gatekeepers?

5. Barriers to Property Licensure/Certification?

6. Barriers to Medicaid Eligibility?

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WHAT SUCCESS LOOKS LIKE

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Heritage Woods of South Elgin St. Anthony of Lansing

FUTURE OF AFFORDABLE ASSISTED LIVING

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Explosive Demographic Trends Managed Care Attempting to Bend the Cost Curve

Incentivized Payor

Reckoning with Entitlement Programs Regulatory Expansion Pressure Keeping AL Defined as HCBS

Rod Burkett President & CEO, BMA Management, Ltd.

rod.burkett@bma-mgmt.com 815-935-1992, ext. 230

Jerry Finis

CEO, Pathway Senior Living, LLC jfinis@pathwaysl.com

847-768-5104

Wayne Smallwood Executive Director, Affordable Assisted

Living Coalition wsmallwood@aalconline.org

217-525-0700, ext. 124

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