Wealthy Seniors Spur Growth in Upscale Assisted Living Market
NEW YORK, NY, Aug 12, 2008 (MARKET WIRE via COMTEX) — The assisted living industry is booming as it caters to a new type of elderly customer — wealthy seniors who are unable to continue living at home, yet do not require the intensive medical care provided in nursing facilities. A newly published report from Kalorama Information, ‘Long-Term Care Markets,’ details the transformation occurring in this $67.5 billion segment of the long-term care market and the factors that should lead to over 12% annual growth through 2012.
Several factors are contributing to this boom: the elderly population is growing at double or triple the rate of the overall U.S. population; today’s seniors want to remain active and as more of them retire with increased net worth, they can afford upscale assisted living facilities offering a broad range of amenities; facilities continue to open specialized communities that provide care designed for residents with mental illnesses, developmental disabilities, dementia and Alzheimer’s disease. In addition, the increased promotional efforts of assisted living and adult communities are leading to a shift in cultural norms and the stigma once associated with institutional living is slowing dissipating.
Unlike other long-term care facilities, assisted living is almost completely supported by private payments and residents typically meet the costs by selling their primary residence. However, managed care is becoming more involved, since nursing home care costs about double that of assisted living. Also more long-term care insurance plans are adding assisted living coverage, which should further spur growth.
“Ongoing cost containment has moved the market away from nursing home care in favor of assisted living and home care services, though all segments have experienced growth due to the general aging of the population,” notes Kalorama Information’s publisher, Bruce Carlson. “This trend will continue as pressure to reduce costs remains strong for managed care, Medicaid and Medicare.”
Kalorama Information’s report ‘Long-Term Care Market’ reviews and analyzes this increasingly important market in the U.S., covering four main segments: nursing homes, home healthcare, hospice care and assisted living. Market indicators, estimates, forecasts through 2012, a competitive analysis and key company profiles are included. For further information visit: http://www.kaloramainformation.com/redirect.asp?progid=11663&productid=1729220.
About Kalorama Information
Kalorama Information supplies the latest in independent market research in the life sciences, as well as a full range of custom research services. Kalorama routinely assists the media with healthcare topics, and can provide experts to speak about markets in the life sciences industry.