CARF Report Identifies Financial Trends in Senior Living
Published On: Nov 30, 2016 Life plan communities seeking to identify industry trends and evaluate their financial performance may find useful information in a new report from the Financial Advisory Panel (FAP) at CARF International.
The FAP just released the 2016 edition of its Financial Ratios & Trend Analysis of CARF-Accredited Continuing Care Retirement Communities in collaboration with CARF, Baker Tilly, and Ziegler, a LeadingAge Gold Partner.
CARF is an independent, nonprofit accreditor of health and human services in a variety of sectors, including aging services.
Benchmarking Information
The annual FAP publication includes benchmarking information and analysis of the financial position of life plan communities that have been through CARF’s accreditation process.
Each year, participating life plan communities submit audited financial statements to CARF. The FAP reviews and aggregates data from those statements to identify key financial patterns and trends affecting the senior living field, according to CARF. The process includes an analysis of 17 separate financial ratios for both single-site and multi-site life plan communities in the United States.
Using the Report
Organizations can use financial ratios as part of a process to assess their financial health, and to make financial or operational decisions, according to Sue Matthiesen, CARF’s Managing Director of Aging Services.
“Looking at trends in financial ratios compiled from other (life plan community) organizations can help in assessing the direction in which the field is going and evaluating your organization’s past performance, Matthiesen wrote in Senior Housing Business.