Elder Care Independence: Where Provider & Investor Outlooks Align

The U.S. healthcare system will see a massive influx of elderly patients as the aging population grows, and investors are diving in.

Providers are preparing as well, and according to recent data, they’re aligned with investors on what the future goal of elder care looks like: preserving greater independence for seniors. A recent CBRE survey—comprised of senior housing investors, developers, lenders and brokers—found that 60 percent of respondents expected to increase the size of their senior housing portfolios this year. The overall volume of investments in senior housing is also increasing. Investments in senior housing and care assets totaled $13 billion between January and December 2017—up nearly 9 percent from the same period in 2016.

Investors are bullish about future demand for elder care services, but where exactly, do they plan to invest?
Investors said the most attractive sectors for investment are independent living (36 percent), assisted living (23 percent) and nursing care (17 percent). Overall, the data indicates that investors will focus primarily on home health care or other models that preserve seniors’ independence as much as possible.

According to BDO’s Candid Conversations on Elder Care, providers are on board with this plan.

The study (with NEJM Catalyst) shows that, according to their near-term investment plans, providers view home health—and models that support it—as the future of elder care. Healthcare organizations said that by 2020, they plan to invest most in home health (44 percent), palliative care (44 percent) and geriatrics (39 percent) to prepare for the growth of the aging population.

What might come next?

View the full Infographic to learn more.

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