Continuing Care Retirement Communities: Are You Taking Care of Mom And Your Business This Mother's Day?
Contributed by Thomas R. Califano, Jeremy R. Johnson, and Jason Karaffa as part of our ongoing Restructuring Matters series.
Continuing Care Retirement Communities (CCRCs) meet an important need and can make difficult care decisions easier for families; they are designed to allow seniors to remain within the same community for the remainder of their years, and to provide the peace of mind that comes along with such stability. As a business model, CCRCs often depend on sizeable initial entrance deposits (IEDs) to provide care for residents and keep the lights on. But what if the sought-after stability is challenged by CCRC solvency issues? Staying solvent and dealing with bankruptcy are critical issues for CCRCs, with potential fallout for vulnerable citizens. The fate of the residents of bankrupt CCRCs has made national news and has been part of a congressional inquiry into regulations regarding CCRCs.
Read more about these issues here.
