Record Entrance Fee Settlements & Reduced Hospital Readmission Rates Reflect Key 2015 Accomplishments
BALTIMORE, MARYLAND (January 20, 2016) — As demand for quality and affordable senior housing and health care services increased, Erickson Living continued to take steps in 2015 to enhance its position and product offerings in the senior marketplace. As a result, the company is now the third- largest independent living provider in the country, and its integrated health-care and wellness services continue to drive key health services outcomes, reflecting the highest standard of operational excellence and best practices in geriatrics.
Five of the key 2015 accomplishments reflective of Erickson Living's success include:
Apartment Settlements — In 2015, a record 2,400 entrance fees were settled, which is a 26 percent increase compared to the previous year. Over the past five years, total company entrance fee settlements reached over 9,600, providing impressive contributions to the steady growth in net operating income (NOI) across the Erickson Living enterprise.
Erickson Health Medical Group — Erickson Living continued its trend of reducing hospital readmission rates for members in Erickson Advantage, its medical advantage plan, in 2015 by lowering its rate to a record level, just 5 percent. This compares favorably with Medicare's national average for readmission rates of 17 percent. This outcome is particularly noteworthy because Erickson Living residents are, on average, significantly older than the general Medicare population.
Additionally, Erickson Living's health plan received a Centers for Medicare and Medicaid Services (CMS) 2016 Medicare Advantage (MA) health plan rating of five stars for Parts C and D. A five-star quality rating is considered exceptional and reflective of the highest-quality products and coordinated health care for seniors and Medicare beneficiaries. More than 4,800 residents are Erickson Advantage health plan members.
Financial Strength — Erickson Living achieved an occupancy rate of over 96 percent, which was well above industry averages. Based on the company's growth outlined below, its current portfolio consists of over 20,250 units (17,298 independent living units and 2,990 health-care units) at 19 properties in 11 states across the country.
Growth/Development — Erickson Living continued actively developing new and existing communities and invested in modernizing its product. The company completed the construction of five new residential buildings and launched several new projects, resulting in over 500 new apartment homes across the portfolio. Two other examples of growth in 2015 include: (1) the launch of a sales center in Matthews, North Carolina, to support the development of a new continuing care retirement community called Windsor Run, and (2) final planning for an early 2016 property acquisition in Naples, Florida, the site of a future Erickson Living community. In total, the company currently has 23 projects budgeted for development, which will add more than 1,850 units at a cost of about $565 million.
By all accounts, 2015 was a notable year for Erickson Living. The company made great strides in achieving its enterprise-wide goals and delivering on its commitments to residents and staff. These milestones, along with a strong mission and operational efficiencies, clearly position Erickson Living for success in 2016 and beyond.
About Erickson Living
Erickson Living is a nation-leading developer and manager of continuing care retirement communities, based in Baltimore, Maryland. Further information regarding Erickson Living is available at: www.ericksonliving.com.