CARF releases 31st edition of Financial Ratios & Trend Analysis of CARF-Accredited Continuing Care Retirement Communities

CARF International’s Financial Advisory Panel (FAP) has released its 31^st edition of its Financial Ratios & Trend Analysis of CARF-Accredited Continuing Care Retirement Communities. This annual publication includes benchmarking information and analysis of the financial position of continuing care retirement communities (CCRCs) that have been through CARF’s accreditation process. A valuable benchmarking resource for the senior living industry for the past three decades, the information serves as a point of reference for developing internal targets of financial performance.

The financial ratios publication is a joint project conducted by CARF, Ziegler, and Baker Tilly. Each year, participating CCRCs submit audited financial statements to CARF, which are then aggregated and reviewed by the publication team to identify key financial patterns and trends impacting the senior living field. The annual publication highlights 17 separate financial ratios for both single-site and multi-site CCRCs in the United States. The three types of ratios are: margin (or profitability); liquidity; and capital structure. The project partners intend this information to be used by CCRCs as a tool to compare actual and budgeted performance, identify trends, and evaluate performance.

“We are pleased to again provide this valuable resource for the industry and appreciate the efforts of our FAP partners who work with CARF on this detailed, analytical publication, Ziegler and Baker Tilly,” said CARF Senior Business Development Specialist of Aging Services Julia Meashey.

The publication team noted the 2023 edition highlights the financial challenges organizations experienced including some record-setting declines in total bottom-line margins, weakness in debt service coverage ratios and liquidity. Despite declines, however, most median liquidity ratios remain at healthy levels and organizations showed solid capital spending with a renewed commitment to campus reinvestment and growth.

A webinar about the financial ratios and findings in this publication was created by and had representatives from CARF, Ziegler, and Baker Tilly, plus a representative from Kendal at Oberlin. The webinar can be found on the Baker Tilly website, as well as the document. Presenters provided specific comparative information based upon primary CCRC contract type and quartile rankings

CARF has been accrediting health and human service organizations since 1966. Payers and regulators interested in more information may contact CARF at (888) 281-6531 or online at www.carf.org/contact. Reporters and members of the media, contact us at www.carf.org/news.