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Continuing Care Retirement Community (CCRC)

May 02, 2018

CCRCs are designed to keep you for the remainder of your life. The facilities included independent living, assisted living and skilled nursing. The idea is not to have to move from one level of care to another except within the community.

The New York Times on March 9, 2018 had a good article on the subject which has been summarized below. https://www.nytimes.com/2018/03/09/business/retirement-community-financial-health.html

There are three types of contracts usually available for a CCRC:

  • Type A – all inclusive
    • One time buy in
    • All or partial refund available
    • Monthly rent required
    • Unlimited access to health care services for life
  • Type C –
    • Less expensive up front
    • You pay for health care services used (market rates apply)
  • Type B – hybrid of the A and C
  • Some CCRCs have month to month rentals

Before deciding to enter a CCRC, consider:

  • Occupancy rate – the higher the percentage for the longer duration the better
  • Rate increase – is the percentage increase in line with the industry?
  • Debt rating – if bonds are issued, should have a rating
  • Profitability
  • Capital Improvement
  • Reserves
  • Residence role

Consumer Resources:


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