Due to the aging baby boomer generation and their related healthcare needs, many markets across the US are experiencing the rapid development of assisted living memory care services. One of Baker Tilly’s clients – a large, Mid-Atlantic continuing care retirement community (CCRC) was interested in evaluating whether there was sufficient demand in their primary market area to expand memory care services on their campus. Baker Tilly was retained to evaluate the competitive environment and to evaluate the depth in the market for additional memory care services.
Baker Tilly’s market research and strategy specialists (part of Baker Tilly’s healthcare practice) engaged in an in-depth market assessment. The research included a competitive analysis of local CCRCs and stand-alone memory care providers to determine whether there was additional market share to be gained. Interviews and site visits were pertinent during the study to gather quantitative and qualitative information about the competition to evaluate pricing, to analyze market trends, and to assess product offerings and programs specific to memory care residents. Baker Tilly’s team evaluated memory care demand based on disease statistics and demographics within the local market.
The research results found a marketplace that was experiencing signs of distress from oversaturation. Baker Tilly recommended that the CCRC should focus on evaluating internal demand for memory care services from within their own campus and develop a repositioning plan for the existing assisted living product on campus. By redirecting financial resources to areas in need of improvement, such as the physical plant, the CCRC will be better positioned to compete with newer, stand-alone facilities in the marketplace. The study pointed out an opportunity for a redirection and a re-prioritization of dollars.
For more information on this topic, or to learn how Baker Tilly market research specialists can help, contact our team.