Fitch: Stable Sector Outlook For Nonprofit Continuing Care Retirement Communities In 2017
NEW YORK–The sector and rating outlooks for nonprofit continuing care retirement communities (CCRC) remain stable for 2017, according to Fitch Ratings. Many of the same factors that informed the outlooks in 2015 and 2016 remain in place for 2017.
The CCRC sector (aka Life Plan Communities) has been experiencing a period of relative operating stability, as higher levels of occupancy and increases in monthly service and entrance fee rates have outpaced expense growth. Fitch expects this stable operating environment to be maintained in 2017. However, the sector is expected to experience some challenges related to evolving post-acute care reimbursement and growing wage pressure around nursing staff.
Fitch expects elevated levels of capital spending to continue in 2017 as communities look to remain competitive and address service-line needs and/or unit-mix issues.
The full report, ‘2017 Outlook: Nonprofit Continuing Care Retirement Communities’ is available at www.fitchratings.com or by clicking the link above.