When it comes to Assisted Living Facilities, you should identify the entity or persons who own the Facility.
There are generally three different kinds of owners of Assisted Living Facilities, Memory Care Units, Nursing Homes etc. They are 1) large corporations; 2) small independent owners or 3) charities.
In this post, I will discuss the first, corporations. Yes, that’s right. Behemothic companies that are publicly traded own and operate long-term care communities. These companies are owned by investors, to include large pension funds, to make a profit. They are often referred to as “chains” due to the number owned and similar amenities and procedures. There seems to be a trend toward mergers into fewer and larger chains. For example, Brookdale Senior Living, Inc. is the largest owner of long-term care communities. In 2011, Brookdale operated 645 facilities in 36 states. Brookdale’s revenue in 2011 was $2.5 billion. At the same time, another corporation, Emeritus operated 245 communities.
Brookdale’s revenue for 2011 was $2.5 billion. They are listed on the New York Stock Exchange as BKD. Emeritus’ total revenue was $1.2 billion. In 2014, Brookdale acquired Emeritus. To give you an idea of the management style of Brookdale, consider this from its Fourth Quarter Financial Report:
“Fourth quarter 2014 total revenue was comprised of resident fee revenue of $1.0 billion, which increased $403.4 million, or 63.2%, from the fourth quarter of 2013, management fee revenue of $16.9 million, which increased $8.8 million, or 107.6%, from the fourth quarter of 2013, and managed community reimbursed costs of $193.2 million, which increased $105.7 million, or 120.8%, from the fourth quarter of 2013.”
This is not to say that Brookdale communities offer poor care. Just know that the corporation’s duty is to the shareholder for profit. In later articles, I will explain why that causes a problem.
Sampling of Brookdale Assisted Living Facilities in Seattle, WA.
Admiral Heights Brookdale
2326 California Ave SW
Brookdale West Seattle
4611 35th Ave SW
6505 Lakeview Dr