Transcript Generated by AI 00:00 Mark Parkinson here with Park Place and another Park View, 00:03 and we are so grateful to Capital Funding Group 00:06 for providing support of Parkview on our entire website. 00:10 Today, 00:10 I'm gonna talk about one of my favorite topics, 00:12 which is what is the best configuration for a long-term care facility. 00:17 Stacy and I had 00:18 the, 00:18 uh, 00:18 you know, 00:19 the great luxury that all 10 of the properties that we were involved in, 00:22 we built from the ground up. 00:24 When you have a chance to build something from the ground up, 00:26 you really want to get it right, 00:28 cause it's probably gonna be there for another 50 or 75 years. 00:30 Thousands of people will live in it. 00:32 You gotta make it really, 00:33 really good. 00:34 So I often get asked the question, 00:36 what's the right mix of rooms? 00:39 What's the perfect 00:41 Product out there right now 00:43 when you build a long-term care facility. 00:45 I don't know that I know exactly what the perfect one is. 00:48 I, 00:48 I, 00:48 I, 00:48 and what I've learned over time is that many will work. 00:51 There are all sorts of different concepts, 00:53 whether it's stand-alone, 00:54 assisted living, 00:55 stand-alone 00:56 assisted living dementia, 00:57 stand-alone skilled, 00:59 you name it. 00:59 If it's, 01:00 if it's put together well and it's in the 01:01 right market and people know what they're doing, 01:04 almost everything has worked. 01:06 But there is something that is my favorite, 01:09 and it is a CCRC concept where you have 01:12 the entire continuum of care on the same campus, 01:15 but it's not the normal CCRC. 01:18 I think the very best product that's out there is the Trilogy product 01:23 developed by Randy Buford and Leanne Barney. 01:26 Who 01:27 have a much smaller 01:29 number of rooms, 01:30 but I think create a really interesting synergy in what they do. 01:34 Now, 01:34 you probably know that Trilogy, 01:36 it's one of the most outstanding companies in the country. 01:38 They are one of the 5 companies 01:40 that we featured in our long-term care success book. 01:43 And I also want to emphasize that the physical plant of any building is really minor. 01:48 I told our teams that even though our buildings were new and beautiful, 01:52 the physical structure was only 10% of it. 01:55 90% of it had to be the care in the building. 01:57 So I don't want you to think, 01:58 oh, 01:58 I just think you can build a great building and have a great facility. 02:01 You don't. 02:01 It's, 02:01 it's a small 02:02 but important part of it. 02:04 So 02:05 Randy Buford had this great idea 02:07 about 30 years ago. 02:09 That you could build a CCRC where the sniffs were the main component of the CCRC. 02:16 Historically, 02:17 CCRCs have been 02:18 large numbers of independent living rooms, 02:21 maybe a little bit of assisted living, 02:23 and then a teeny amount, 02:24 maybe 30 beds 02:26 of skilled nursing. 02:26 So you've got like 200 beds of IL, 02:29 30 beds of skilled nursing, 02:31 and that's been the traditional CCRC. 02:34 Rainey had a much different idea. 02:35 His idea was, 02:36 let's make skilled nursing the center part of the facility, 02:40 and then have a little bit of IL and a little bit of AL. 02:43 So a typical trilogy building will have 02:46 about 60 skilled nursing facility rooms, 02:49 and then about 20 to 30 assisted living 02:52 rooms, 02:52 and about 20 or 30 independent living rooms, 02:56 sometimes connected to the same buildings, 02:58 sometimes just on the same 03:00 piece of land. 03:01 But it works together as a CCRC. 03:04 Now, 03:04 when you think about a 60 bed nursing home, 03:07 or a 30 bed assisted living, 03:09 or a 30 bed independent living, 03:11 individually, 03:12 none of those things could succeed. 03:14 The finance, 03:14 the finances just wouldn't work, 03:16 that it would be an inefficient size. 03:19 But when you put those things together, 03:21 there's a really, 03:22 really powerful synergy. 03:24 Of course, 03:24 you've got a lot of folks that are in the nursing home. 03:27 Many of them will have to have to leave for a while and go to a hospital. 03:31 They can come back and do rehab. 03:32 You have people that are in the assisted living facilities that 03:35 sometimes get sicker and end up in the nursing home. 03:37 You have people that come in for rehab that 03:39 get well enough to leave the rehab facility, 03:42 but not well enough to go home, 03:44 so they end up in the assisted living building. 03:46 All of it creates an incredible synergy as it relates to census. 03:49 And so when you look at the census of trilogy, 03:52 their census is over 90%. 03:54 On top of that, 03:55 you also diversify your Medicare and your Medicaid risk, 03:59 because their independent living and their assisted living is private pay. 04:03 So about half of the facility 04:05 is a private pay product. 04:07 The other half is Medicare and Medicaid. 04:10 It also has some interesting ramifications as it comes to financing. 04:15 The finance world looks at assisted living and independent 04:17 living as more favorable from an investment perspective. 04:21 So a campus that has 04:23 all three components. 04:25 is more valuable 04:26 than a campus that would only have skilled nursing. 04:29 Stacy and I sort of had this model, 04:31 not as smart or as well done as Randy and Leanne have done it, 04:35 but if you can get several components of care on the same site, 04:39 it's a tremendous advantage for people that live there. 04:42 It's a tremendous operational advantage, 04:44 but, 04:44 and it also works really, 04:45 really well 04:46 financially. 04:48 So, 04:48 if you're thinking about building a new building and wanna look for, 04:51 you know, 04:52 the perfect mix, 04:53 I encourage you to look at Trilogy, 04:55 and a lot of others that are out there that are doing super well. 04:58 Hope this has been helpful. 04:59 We appreciate your support of Park View and your support of Park Place.
