Savings for Life Plan Communities on Unit Turnovers and Other Renovations
One of the unique benefits of living in a Life Plan Community is the comfort residents have in knowing that should frailties associated with aging or declining health require a move from independent living to assisted living or skilled nursing, that option is available on campus, nearby to spouses and friends. For the Life Plan Community, the move is about keeping residents safe while providing a living arrangement that affords the highest level of independence available.
This aspect of management of a Life Plan Communities can be amongst the most challenging facing community staff. Not only are the independence and safety of residents important, but also is the process of making the right decisions that ensure financial stability for the community as unit turnovers become more common. For Life Plan Communities in operation for a decade or more, it is not uncommon to see 10 – 12% of apartments or cottages turnover each year as residents move to higher levels of care or pass away. For an average sized Life Plan Community with 250 independent living units, this means that at any given moment in time, renovations may be taking place in 2 or 3 units per month, with an annual total of 25 or more units. The budget impact of these activities can be significant and is tied to length of time that residents have occupied a unit.
The renovations can range from the purely cosmetic (i.e., paint and carpet) to the much more involved makeover that includes new appliances, cabinetry, countertops, flooring, paint, and plumbing fixtures. Depending upon the choices of new furnishings, Life Plan Communities may be spending between $50,000 and $100,000 per unit for the renovations. Multiplied by the number of units renovated each year, with the passage of time, unit turnovers become a significant component of the annual budget of a Life Plan Community.
With that as an introduction, it is exciting to announce that there is a new Group Purchasing Organization focused specifically on unit turnovers – U-Turn GPO. The program was developed by senior living veterans who understand the renovation process and the products critical to keeping units fresh and marketable. U-Turn GPO has signed up several Life Plan Communities already and remains free to join, with no long-term commitment required. Frank Mandy, Principal at Resilient Project Management, the founder of the program has partnered with experienced business professionals who can provide a seamless ordering experience and a straightforward delivery process.
Among the goals of U-Turn GPO is not only providing the highest quality of products for renovations but also helping Life Plan Communities to standardize their unit turnover process so that there is consistency in look and feel that helps the marketing teams responsible for keeping independent living units full. All of this can occur with savings that allow Life Plan Communities to beat wholesale prices for appliances, flooring, countertops, cabinetry, paint, and plumbing fixtures, plus many other products used during renovations. This new GPO will harness the purchasing power of many Life Plan Communities to leverage great pricing and consistent access to supply chains.
