Today, there are approximately, according to the AHCA, 28,900 assisted living communities with almost 1 million licensed beds in the United States. It is a huge industry and one that is growing rapidly every day. Why? Because right now a multitude of factors are clashing and creating a perfect storm for the industry, one that is making it grow at a steady clip.
Amongst those factors are demographic realities – overpopulation is producing a greater number of senior citizens that need care; financial realities – today’s senior citizens, and baby boomers, can afford better care when compared to past generations.
Technological realities – tech is much more affordable, much more efficient, and much more available, which translates to businesses being able to optimize their practices, and ultimately reduce costs.
In this article, we’re going to give you a quick guide on the steps, equipment, and tech you will need to start up an assisted living facility in 2022.
The need for assisted living in 2022.
It’s important to discuss why assisted living facilities are critical nowadays. The US Census Bureau estimates that by 2060, there will be a significant increase in the number of older adults in the population. This is mainly due to the baby boomers and their children, who are now ageing and entering their senior years.
There are many reasons why assisted living facilities are needed, but one of the most important is that people who live alone often have a higher risk of illness and injury as they age.
Assisted living facilities, at their core, provide support to their residents — all manner of support. They offer a wide range of services such as meals, housekeeping, transportation, and social activities. These types of facilities are mostly for elderly people who require some type of assistance with day-to-day activities. If you’re looking for an assisted living facility, you may consider using a senior living referral service to help you find the right one for your needs.
The advantages of assisted living include allowing elders to age in place and have their dignity. They also provide a sense of community and belongingness to the residents. They take into account not only the physical well-being of the person but their emotional and psychological state — enhancing it, nurturing it, and safeguarding it.
How to start an assisted living facility in 2022?
An assisted living facility is a residential home that provides care and supervision to people who are ageing or have a disability. The facilities provide help with activities of daily living, such as bathing, dressing, and eating.
There are many considerations to take into account when starting an assisted living facility. These considerations include the type of building you will lease or purchase, the number of beds you need and the cost per bed, staffing requirements for the facility, how much money you need for startup costs, what services your residents will need and how much they will pay for them.
Plan your business
You’ll need to have a blueprint of your essentials when envisioning an assisted living facility in 2022. A few important questions to ask yourself are:
- Who is your target market?
- What are the startup and ongoing costs of your facility?
- Is there a market in your community for such a place?
- How much can you charge your customers?
- Who are your competitors?
Your facility has to be constructed — whether you already have a property or not, you will need to furnish its inside so it’s up to standard with others in the industry. This includes medical supplies, rents, payments, wages, services, insurances, state licenses, etc.
You will need to create a business structure – either a sole proprietorship, a partnership, a limited liability company, or a corporation. It is recommended to establish an LLC or a corporation, both of which protect you personally from being liable in case of a legal issue.
You will need to register for a vast variety of state and federal taxes. Each region is different — you will also need to ably through the IRS website, for an EIN – and Employer Identification Number.
Permits and Licenses
As an assisted living facility, it is key that you obtain all the permits and licenses your state demands otherwise you will have to face hefty fines or find that your facility is being condemned or shut down by the authorities.
Your business will need insurance to operate safely and within the law.
The facility needs to have a lot of assisted living equipment and tools that can help the residents with their day-to-day tasks. The facilities provide them with the care they need, but they also need to be able to keep up with their daily tasks on their own. There are many different types of equipment that can help them in this area, including, laundry machines, dishwashers, microwaves, refrigerators, toasters, ovens, stoves, television, computers, etc.
Most people, when funding an assisted living facility only take into account medical technology. In reality, although essential, that branch isn’t the only one that will put a dent in your button line. The technology in assisted living is essential for the safety, well-being, and comfort of all residents. You will also have to take into account monitoring technology such as
- Video surveillance systems: These systems are typically installed in hallways, lobbies, and other common areas where residents may congregate. They are used to monitor who is coming and going from the facility as well as to monitor residents’ activities during their free time.
- Security systems: These systems are designed to protect residents from potential threats by preventing unauthorized access to the facility’s interior or exterior doors. They can also be programmed to alert an operator when a resident has left his or her room after bedtime or entered a restricted area such as a kitchen without permission.
Why start an assisted living facility?
The business of starting an Assisted Living Facility is a great opportunity that is in line with emerging demographic realities. You will not only be creating a profitable business but one that provides essential services in the community.