Senior Housing and Assisted Living

Horizon Bay Retirement Living recently held a groundbreaking ceremony for Isle at Watercrest, the full service, assisted living and skilled nursing community of Watercrest at Bryan. Set to open in early 2011, Isle at Watercrest will serve the needs of families in and around the Bryan-College Station area. Isle at Watercrest will be managed by Horizon Bay, a national seniors housing operator based in Tampa, Fla. Developed by South Bay Partners with construction by Integrated Real Estate Group, this new community joins 23 other Horizon Bay communities in the state of Texas, and will serve 36 skilled nursing residents and 57 assisted living residents.  The community is located near the Hudson Creek Alzheimer’s Special Care Center and in the Park Hudson, a master-planned community of newer residences, medical offices and other important services. Over the course of construction, Isle at Watercrest will employ 300-400 local construction workers.

“We are truly excited to bring this new and distinctive assisted living and skilled nursing community to the Bryan-College Station area,” says Stephen Benjamin, President & COO of Horizon Bay Retirement Living. “We look forward to providing high quality services to the seniors and families of this great community for many years to come.”

The Federal Housing Administration’s latest Outlook Report shows that reverse mortgage applications continue to slide as home prices continue to struggle to find a bottom. In January, the agency reported it received 5,805 applications for reverse mortgages (HECM), down 16.2% from the prior month and 54.2% lower than the same period in 2009.  In January the industry endorsed 7,628 HECMs, consisting of 6,911 traditional HECMs, 113 HECM for purchase loans, and 605 HECM refis. Total maximum claim amounts came in at $2.1 billion in January, down from $2.3 billion in December.

These numbers come as the National Association of Realtors said that sales of previously owned U.S. homes unexpectedly declined in January for a second month, and that purchases fell 7.2 percent, the second-largest decline ever, to an annual pace of 5.05 million.  Distressed sales are distorting prices as more sellers are entering short sales and the lack of job growth in the economy add strain to an already tenuous housing market.  With the termination of the first time home buyer tax credit on the horizon, the skies look gray for home prices in the coming months.

FHA Outlook Report

Sun Healthcare Group, Inc. (NASDAQ: SUNH) announced its operating results for the fourth quarter and year ended December. 31, 2009 that showed 2009 fourth-quarter earnings and normalized EPS of $0.28 and 2009 Year-End Earnings and Normalized EPS of $1.10.  SUNH announced that consolidated revenues rose 1.6% to $474.1 million and an increased EBITA by 4.9 percent to $45.4 million.  The company reported a decrease in its occupancy rate from 88.9% for 2008 to 88.1% in 2009. 

"The story of the quarter is the story of the year. Successful execution of our high acuity strategy drove rate growth, resulting in revenue growth for both the quarter and the year of 1.6 percent and 3.2 percent, respectively, accompanied by strong expense controls, our infrastructure cost reductions, and a favorable labor market. This revenue growth somewhat mitigated the continued softness we have experienced in occupancy and payor mix. I would note that we have managed to achieve consecutive revenue growth in all four quarters of 2009. I have always said that I have great faith in our management team’s ability to execute, as illustrated by a 30 basis point expansion of normalized adjusted EBITDA for the quarter and a 50 basis-point expansion for the year. In an environment that has clearly tested us, our earnings growth of 7.7 percent for the quarter and 18.3 percent for the year was quite respectable. Our ability to convert our operating results into free cash flow continues to be a company strength. Our free cash flow for 2009 was a robust $54.6 million", said Richard K. Matros, Sun’s chairman and chief executive officer.

For the SUNH 8-K, http://ir.sunh.com/phoenix.zhtml?c=70364&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NjgwNTQ1NiZhdHRhY2g9T04mc1hCUkw9MQ%3d%3d

As your parents and grandparents grow older, you may become concerned about their safety at home. Placing them in an assisted living facility is often considered as an option. However, homecare is an alternative that has many benefits.

1. Seniors who live at home feel more independent than those who live in retirement homes. This sense of independence is important because it helps the elderly maintain their dignity, which is something they often fear losing. The freedom of living at home allows seniors to come and go whenever they please; and meal times are also their choice.

2. When the elderly live at home they are able to keep their physical possessions close at hand. The things they love do not have to be placed in storage as a result of moving into a smaller space. Many of these objects are tied to priceless memories, so it is understandable that a senior wouldn’t want to part with them. Additionally, most retirement homes do not allow pets. At home, seniors can keep any pets they’ve grown attached to, which has been scientifically proven to reduce stress.

3. Visiting hours are not restricted at home, so friends and family can visit on a time schedule that works for them. This lack of restriction often leads to more frequent visits, which helps seniors stay connected to their families.

4. Homecare can help the elderly maintain better health. In places where many people live together, such as assisted living facilities, illness spreads very quickly and if one person gets sick, everyone tends to get sick. At home, sick guests can be asked to postpone their visit until they are well again.

5. With home care, the elderly do not have to deal with the emotional stress of adding multiple new elements into their lives. They will not have to adapt to a new routine in a new place, surrounded by new people.

6. Assisted living facilities can be very expensive and, in some cases, far away from other family members’ homes, especially in less populated areas. In many cases, seniors have already completely paid off their off mortgage, which can substantially reduce the costs of caregiving at home. The stressors related to the actual moving process are also eliminated.

7. Finally, most seniors who live at home are far happier than they would be if they moved into an assisted living facility. The comforts of home are truly invaluable.

There are now many products and services that make living at home both feasible and affordable. Enhanced security systems, emergency panic buttons, and home delivered meals are just a few of the options to choose from. If your elderly family member wants to live at home, honoring that wish is now easier than ever before.

Want to find out more about senior homecare products and services, then visit Susan R. Love’s site on how to choose the best independent living products and services for your caregiving needs.