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The 2016 ZGES Survey: Insights From Senior Living Executives

The 2016 Ziegler Greystone Executive Symposium welcomed senior living leaders from around the country March 2 to 4 in New Orleans, La. This year’s event addressed current and relevant trends and topics including:

  • Transforming Business Models
  • Accessing Capital to Finance Change
  • Repositioning for Comparative Advantage
  • Creating Urgency in Marketing
  • Mission-Driven Business Outcomes
  • Planning for Growth
  • More

In addition to these sessions, attendees took part in the annual ZGES Survey of Industry Trends. This survey seeks to capture the current mood of non-profit providers, including what their organizations are doing in response to their local environments. It’s always fascinating to see how the responses change year-over-year, providing a look at the trajectory of senior living as given by top executives from leading organizations.

Here are a few key findings from this year’s survey:

The Respondents: 23 organizations completed a survey, including 14 single-site organizations and one that has yet to develop a community.

Economic Outlook: 41 percent of respondents are more optimistic about the economic outlook compared to last year, while 55 percent remain unchanged in their optimism.

Real Estate Market: 17 of 23 respondents see the real estate market as strong, while three see it as excellent.

Sales Incentives: 59 percent of respondents are continuing with existing sales incentives, while 27 percent have scaled back. By comparison, only 10 percent of respondents had scaled back sales incentives in 2015.

Current Threats: The most significant threats as seen by these providers are the regulatory environment and reimbursement changes, followed by for-profit competition and operating costs.

For-Profit Competition: 78 percent of respondents indicate that for-profit investment in their markets has increased from last year.

Occupancy Concerns: Providers are less concerned about independent living occupancy and more concerned about assisted living and memory support occupany.

Succession Planning: 78 percent of respondents anticipate succession in the next 10 years, but 57 percent of respondents currently have no succession plans in place.

Growth Plans: 21 of 23 respondents are currently planning a redevelopment or expansion.

Growth Readiness: 12 of 23 respondents say they are actively planning for new opportunities and that their boards are ready, while 8 of 23 are currently focusing on existing campuses.

Types of Growth Initiatives: 19 of 23 organizations are considering multiple growth initiatives.

The Next Three Years: In the next three years, 10 respondents are looking at new development, 16 at expansion of an existing campus, and 10 at redevelopment of an existing community.

Investment Constraints: Access to a quality site and capital market requirements are the most common constraints to investment, followed by staff time and pre-finance funding.

Contact us if you’d like to participate in the 2017 Ziegler Greystone Executive Symposium.

See the full presentation report of this year’s survey findings.

2016 ZGES Survey_Page_18

 
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