2015: The Year of the Small Senior Living Provider
: Senior living is an industry that knows the value of scale. But contrary to popular belief, smaller organizations have an advantage — now more than ever — over the mammoth hundred-community providers that seem to dominate the market and the media, industry experts say.
More than 60% of the market comprises providers that operate fewer than 10 communities”, says Deborah Howard, CEO of Senior Living SMART, a Web-based resource focused on independent owners and operators.
Despite this, the top-20 providers garner most of the attention, announcing mega mergers, rolling out national ad campaigns and partnering with real estate investment trusts (REITs) to gain access to operating and growth capital.
Scale undoubtedly provides a number of benefits for owners, operators and shareholders. Namely, more resources, cost savings and investment opportunities. However, “going big” also comes with its fair share of challenges.
Authenticity starts with the leadership team and then translates into the culture of the organization. For independent operators, demonstrating authenticity comes easier, as the management team is often out in the local community, interacting with prospects and residents’ families every day.
This accessibility creates another advantage for the smaller providers, whose leaders are just a call away.