Thread: Nursing homes

I'm writing this after reading the post about what's going on in the world. Forget the politics. What I got from the thread was...how can I build mini nursing homes with three to four patients each!

I DO NOT see anyone building any more nursing homes. Where are they going to put all the people in the U.S. who need a nursing home? My mother is in her second nursing home. From what I've seen, they are all packed already. To be fair though, one of the nursing homes in my area just did a large addition.

I've heard this business is a loser. Does anyone have any insight into this business?

Health care is expensive. IMHO the homes that make the most profit are probably the larger ones as they can make more use of management and administration payroll. One problem is the rising costs of healthcare versus the low coverage of the residents. Also, labor is expensive and there is a high turnover rate for CNAs and the like, which means you might pay a lot of over time.

This is only what I see happening locally.

3 to 4 patients doesn't seem to scale very well. Having a larger facility and more patients allows economy of scale for many of the services you would be providing your patients. One full time manager, one full time maintenance person, etc. You would have to do the same thing with nurses, aids, cooks, janitorial staff, maintenance staff, billing staff. It doesn't seem like you would be able to use one staffer at multiple facilities and still meet your clients/patients needs.

Like commercial real estate threads by Steve0 about buying apartment complexes > 100.

Just my $0.02.

Something I have thought about is converting a 12-15 unit single level apartment complex into an assisted living facility. Depending on the original layout of the property and available space, a community center with kitchen facilities and dining could be added or a larger two bedroom unit could be converted. From what friends with parents in that age category have said, the rent for assisted living apartments is around three times a normal unit and you don't have near the employee needs that a full nursing home has.

Originally Posted by White8

Something I have thought about is converting a 12-15 unit single level apartment complex into an assisted living facility. Depending on the original layout of the property and available space, a community center with kitchen facilities and dining could be added or a larger two bedroom unit could be converted. From what friends with parents in that age category have said, the rent for assisted living apartments is around three times a normal unit and you don't have near the employee needs that a full nursing home has.

As the Guiness guys would say "Brilliant". Just opened my eyes to something. I need to get my thoughts together on it but my Grandmother lived in an upscale assisted living facility. Now you got me thinking. I can't name one facility that I pass on a regular basis. hmmmmm..........