Today’s continuing care retirement centers, or CCRCs, as they are commonly referred, vary greatly from one to the next. Despite their differences, however, what many have in common is that they provide both housing and health care to numerous individuals in one residential setting. Risk management for CCRCs is of growing concern for business owners, and is based on a variety of factors, some of which differ substantially from those faced by other types of senior housing communities. Risks that should be taken into account when creating an insurance policy for a CCRC include:

Health Care-Related Risks

Residents of CCRCs often pay upfront for anticipated health care expenditures and long-term care costs, but CCRCs run the risk of these fees and expenses increasing and becoming more than was initially anticipated.

Inflation-Related Risks

Given that many CCRC fees are paid upfront based on projections, these organizations run the risk of seeing increased costs for goods and services. It can prove tremendously difficult to raise fees given that agreements and contracts have already been signed, so CCRCs themselves can end up responsible for these increased expenditures if not properly protected.

Occupancy-Related Risks

To maintain a profitable business, most CCRCs must have occupancy levels at 80 percent or higher. Given the recent economic downturn, many seniors are finding alternatives to CCRC housing, such as living with a loved one. Ensuring that a CCRC is adequately occupied is critical for future success.

While the aforementioned risks are of great importance to owners and operators of CCRCs, there are many additional areas that factor in to determining risk management for CCRCs. Those interested in learning more should speak with an insurance provider about specific areas of concern.