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Tellatin, Short, Hansen & Clark, Inc.

Seniors Housing and Healthcare Valuations, Market Studies and Consulting Services

An entry-fee option maximizes the financial benefits to the operator as well as the resident. Independent living operators have a fiduciary responsibility to their residents as well as their investors to offer an entry-fee option.

"We will provide you with the necessary expertise to minimize the risk of implementing and maintaining an entry-fee program."

- Mark Hansen

Entry-Fee Consulting

Entry fees are no longer a financial vehicle only available to non-profit owners and operators of seniors housing facilities. As an operator or owner, you have a fiduciary responsibility to provide your residents with not only the best quality of care and services, but also the best financial arrangement for funding their stay. An entry-fee option will provide both you and your residents with the best deal financially in almost all independent living settings.

From the analysis of multiple entry-fee programs throughout the United States and numerous case studies, Tellatin, Short & Hansen has developed a comprehensive entry-fee program that can be specifically tailored for your facility.

Resident benefits:

  • Low monthly service fee more in line with a resident's actual monthly income.
  • Preservation of a resident's estate.
  • Provides a real and measurable rate of return to the resident as a member of your facility.
  • Under a type A or B entry-fee option, a portion of entry fee and service fee is tax deductible in most cases as a medical expense.

Owner and investor benefits:

  • Lower annual turnover and higher sustainable occupancy due to the increased potential resident pool for the facility and longer length of stays.
  • Strong balance sheet.
  • Limits or eliminates the need of mortgage funding lowering investor risk without sacrificing returns to the equity investor.
  • Higher internal rate of return or cash-on-cash return to the equity investor.

Entry-fee services include:

  • Analysis of competitive facilities in your market in order to assist in establishing a marketable and competitive program.
  • Analysis of socioeconomic conditions in your market in order to assist in the establishing entry fee and service fees at levels producing sufficient demand to support the program.
  • Actuarial analysis and forecast in order to establish a sustainable program whereby reducing the risk of future operating cash shortfalls.
  • Establishment of entry fees and services fee program.
  • Outline successful marketing strategies for entry-fee units.
  • Marketing brochure outlining marketing tactics for entry-fee units.
  • Reserve requirement recommendations to fund future resident refunds.
  • Perform annual analyses to determine if adjustments to the entry-fee program are necessary at the facility for the first two years after the implementation of the entry-fee program.