There are nearly 76 million baby boomers in America, and within the next year, the large group born from 1946-1964, will begin reaching the age of retirement. Along with the aging baby-boomer population comes rising needs to fit these changing demographics in our population. One aspect greatly affected by the increasing senior population is the need for housing.
An emerging trend for healthcare systems across the United States is to set up a continuum of care campus that offers housing options for all levels of senior care. Different types of senior care require different types of living options, including adult homes, home health care, independent living, assisted living, enriched living, nursing homes and more. Many organizations are looking to expand their current offerings, connecting the missing links in the continuum of care chain. For instance, Client A may offer independent living and a nursing home but offers no “in-between” housing options such as assisted living or adult homes. Therefore Client A would engage RMS to conduct a feasibility study to estimate the demand that a new assisted living facility would generate in their primary market area (PMA).
Market research is used in order to determine not only the feasibility of creating or modifying senior housing, but to also dig deeper to understand the potential users of these senior services. By choosing RMS to conduct your feasibility study, we will answer the following questions:
- Where will we draw residents from/where should we market our services? Defining this PMA guides the feasibility process, collecting demographical information on the population, analyzing competition, and creating a demand model.
- What is our primary and secondary competition? RMS creates in-depth profile looks at all competitors in the PMA. We collect unit breakdowns and mix, payment options, rates, amenities, services, and marketing news. We even conduct mystery shopping calls to collect primary information through phone and e-mail.
- What level of demand can we expect/is there a need for this facility? RMS creates a customized demand model to fit your potential audience. Our team uses the demographic and competitive information to create a number of units/beds the PMA will support to help guide you in sizing the facility.
- What types of services/amenities should we offer? In addition to collecting the competitive information, RMS conducts a telephone survey and/or focus groups to speak directly to the most likely users in your PMA. We obtain feedback on all kinds of features and amenities and identify the “must haves,” “like to haves,” and the “unnecessary.”
Like many feasibility studies, market research is done to decrease the risk of investment and answer questions surrounding the “if we build it, will they come?” age-old question. RMS has a proven track record of providing clients with accurate demand estimates for this “go” or “no go” dilemma. Clients use our reports for grant applications, funding, and also reference it to help customize their facility to match the needs of the most likely users. The Bunker has made this argument before but feasibility studies are truly a situation where spending up front can save your organization bundles down the road.