Baker Tilly, CARF and Ziegler are pleased to provide you with the 2021 edition of the Financial Ratios & Trend Analysis of CARF-Accredited Continuing Care Retirement Communities report.
Senior services providers face many financial and operational challenges , including fulfilling their organization’s mission-critical task of caring for their clients. At Baker Tilly, we understand the senior services industry and help our clients achieve short- and long-term financial sustainability and success.
Because of this passion for helping senior living organizations, Baker Tilly has again collaborated with CARF and Ziegler to publish the annual report Accredited CCRCs. Last year’s publication captured data at a point in time just before the impact of the coronavirus pandemic, revealing an industry in good position to weather the coming storm. However, the 2021 edition is the first publication to include financial statements bringing to light COVID-19’s effects, including lost revenues, additional expenses and occupancy challenges.
The ratios presented in the 2021 publication capture fiscal years ranging from March 31, 2020, to Dec. 31, 2020. In 2020, many continuing care retirement communities (CCRCs) received federal, state and local COVID-19 relief funding, including but not limited to Payment Protection Program (PPP) loans and distributions from the U.S. Department of Health and Human Services (HHS). The accounting treatment and timing of recognition may vary depending on the individual facts and circumstances of each entity. Therefore, CARF has excluded these funds from certain ratio calculations for comparability purposes.
This publication’s purpose aims to assist the boards and management teams of individual CCRCs in understanding the financial trends within the senior services industry. In addition to aiding management teams with the creation of benchmarks to evaluate the financial performance of their organization, this publication also helps investors, regulators and consumer better understand CCRCs.
After evaluating your organization’s own specific situation (e.g., mission, unit complement/mix, condition of physical plant, capital structure, etc.), this publication can serve as a useful tool to better understand the current financial performance of your organization compared to your peers as well as establishing appropriate target benchmarks to help your company on its path to financial resilience.
Please contact us with any questions you may have about the CCRC environment or the 2021 Financial Ratios & Trend Analysis report.
For more information on this topic, or to learn how Baker Tilly’s Value Architects™ can help, contact our team.