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2023 Financial Ratios & Trend Analysis of Continuing Care Retirement Communities 

A joint project of CARF, Ziegler and Baker Tilly

 Baker Tilly, the Commission on Accreditation of Rehabilitation Facilities (CARF) and Ziegler have unveiled the 2023 edition of the Financial Ratios & Trend Analysis of CARF-Accredited Continuing Care Retirement Communities report, marking its 31st edition.  

Covering data from March 31, 2022, to Dec. 31, 2022, the report highlights the financial challenges faced by organizations, including significant declines in bottom-line margins and debt service coverage ratios. Despite these setbacks, most median liquidity ratios remain robust, with organizations demonstrating resilience through consistent capital spending and a renewed focus on campus reinvestment and growth. 

This comprehensive publication presents comparative data for 17 financial ratios, categorized by contract type and quartile rankings, and uses Fitch credit rating categories for broader comparisons. With 27 years of historical data, it offers valuable insights into financial trends and senior living resiliency. In response to the COVID-19 pandemic, many CCRCs received financial support from various levels of government, including FEMA grants, Employee Retention Credits, PPP loans and Health and Human Services distributions. It's important to note that the accounting treatment and recognition timing of these funds may vary, leading to their exclusion from certain ratio calculations. 

What should you do with this information? 

Once you've assessed your organization's unique circumstances, utilize this publication to gain insights into your current financial standing and compare it to industry peers. This will enable you to chart a course towards a more financially sustainable future for your company. 

Patrick Heavens
Principal
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