Deciding to move into a continuing care retirement community (CCRC), also known as a life plan community, is often like purchasing an insurance policy against uncertain future needs. You may worry about being unable to maintain your home, living safely on your own, or needing care your partner cannot provide. CCRCs offer a continuum of care—from light assistance with daily tasks to full-time skilled nursing—so residents who make the significant financial commitment expect the community to honor its contractual promises when care is required.
However, CCRCs operate as businesses, and quality of management and long-term financial strength vary. That raises an important question: how can you be confident the CCRC you’re considering will remain financially able to deliver the services and amenities guaranteed in your contract?
Considering a CCRC’s financial viability
Prospective residents should investigate a community’s financial condition and understand its long-term stability, often referred to as financial viability. For many people, assessing a CCRC’s finances is challenging. Even financial professionals who are unfamiliar with CCRCs’ unique business models, residency contracts, and actuarial accounting can struggle with this assessment.
To help, myLifeSite developed a free consumer resource titled “Guide to Evaluating the Financial Viability of a CCRC.” The guide helps you evaluate a community’s financial health more effectively. It isn’t a guarantee of future viability, but it provides a framework to determine whether a provider is taking the appropriate steps to protect its long-term financial success.
>> Related: Choosing a CCRC That Will Keep Its Promises (and What to Do If It Doesn’t!)
What the guide explains
Different CCRC business structures: A community’s legal and business structure affects operations, tax obligations, and ultimately financial performance.- CCRC regulations: In regulated states, you can often find useful information in state filings that sheds light on a community’s oversight and compliance.
- Examining a CCRC’s financial statements: Reviewing financial statements helps you understand current liquidity, liabilities, reserves, and overall fiscal condition.
- Other data to consider: Additional sources—such as audit reports, actuarial studies, occupancy trends, and resident fee histories—can provide valuable context when evaluating financial viability.
Different CCRC business structures: A community’s legal and business structure affects operations, tax obligations, and ultimately financial performance.>> Related: Search our CCRC database now — It’s free!
Why understanding financial standing matters
Choosing a financially stable CCRC need not be a gamble. By learning the key factors that affect a community’s fiscal health—business structure, regulatory environment, audited financials, occupancy trends, and management practices—you can make a more informed decision and feel confident your investment will be supported over time. For more guidance, download the free “Guide to Evaluating the Financial Viability of a CCRC.”