Brookdale, the largest chain of senior care operations companies in the United States

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Brookdale - Brookdale Senior Care Company is the largest senior care service company in the United States. It was founded in 1978 and is headquartered in Brent, Tennessee. Wood, which specializes in senior housing, specializes in high-income and middle-to-upper-income consumers, providing them with an active retirement life and high-quality personal services. Brookdale was listed on NASDAQ in the United States on May 2, 1997. Currently, Brookdale has more than 1,100 senior care communities in 47 states, covering 80% of the U.S. population, with nearly 80,000 employees and serving more than 100,000 people. The types of services operated by the company mainly include self-care communities, assisted living communities, special care (dementia care) communities, and continuing care retirement communities.

——In June 2005, Brookdale and Alterra Healthcare merged. Alterra was also one of the top companies in the senior care industry at the time, and went public in November.

——In July 2006, Brookdale announced the acquisition of American Retirement Corporation (ARC) in Nashville, Tennessee. At that time, ARC was operating nearly 130 communities across the United States. ARC had been operating since the 1970s, and its business scope ranged from CCRCs to assisted communities to self-care communities. Fortress believes that merging ARC is a good opportunity for Brookdale to move it to the forefront of the industry, not just to increase scale, but to unite the longest-running and most successful senior care companies in the industry to complete the acquisition of ARC After the acquisition, Brookdale has nearly 550 communities in 36 states.

——In October 2009, Brookdale Senior Care Company and Sunrise Senior Care Company reached an agreement, and Brookdale acquired 21 senior care communities from Sunrise Company.

——In October 2011, Brookdale completed the acquisition of Horizon Bay Retirement Living, acquiring nearly 90 retirement communities across the United States.

——At the end of July 2014, Brookdale completed the acquisition of Emeritus Senior Care Company, which was the second largest senior care company in the United States at the time. At this point, Brookdale has become the only comprehensive senior care solutions company in the United States, with more than 1,100 retirement communities in 46 states, covering 80% of the U.S. population. The merger and acquisition of Emeritus is of great significance to Brookdale. Not only has it become the largest senior care company in the United States, the number of communities has soared by 493, and its business scope has rapidly expanded to 47 states. It is also of great significance to the promotion and construction of its brand. .

As of the end of 2015, Brookdale had 959 self-operated and rented retirement communities and 81,067 units; it provided management and operation services to 164 communities and 27,353 units. In terms of community type, Brookdale operates 130 retirement center communities (24,486 units), 915 assisted communities (62,567 units), and 78 CCRCs continuing care retirement communities (21,367 units). Most of Brookdale's communities are around the campus or communities with relatively complete supporting facilities.

As of the end of 2015, the company's revenue composition was 38.8% from user living and management fees in its own communities, 48.7% from rental communities, 11.1% from Brookdale's supporting services, and 1.4% from third-party companies. Fees for management services provided.

In terms of the company’s operating income and profits, according to the 2015 financial statements released by Brookdale Senior Living on February 16, 2016, as shown in the chart: (Data source: MarketWatch)

The chart can clearly reflect Brookdale’s operating conditions in recent years. From 2011 to 2014, although operating income has been rising, profit margins have grown slowly, and there has even been negative growth from 2013 to 2014. After acquiring Emeritus, the second largest senior care service company in the United States, in 2014, its performance increased rapidly in a short period of time. Although it has become the largest pension company in the United States, based on previous data, its profitability still needs to be improved.

Figure: Distribution of elderly care content

1. Retirement center community

This type of community specializes in providing high-quality services to seniors with middle-to-high incomes who are 75 or above. elderly care services. Generally, a retirement center community includes self-care and auxiliary units, and can provide users with self-care or auxiliary services according to local conditions and according to different units and user conditions. As of the end of 2015, 78.9% of the units in retirement communities were self-contained units, with the remainder being assisted units.

Retirement communities include Brookdale-owned and leased communities, as well as retirement communities where they provide services to third parties or joint ventures. As of the end of 2015, Brookdale's retirement center business segment had 95 retirement center communities with 17,140 units, accounting for 15.8% of Brookdale's entire community capacity; it provided management services for 35 communities with 7,346 units, accounting for 15.8% of Brookdale's entire community capacity. 6.8. These retirement communities account for 22.6% of Brookdale's total community capacity.

2. Assisted communities

Brookdale's assisted communities provide housing for residents, services for residents who need 24-hour assistance with daily activities, and services for older and weaker residents. . Assisted communities offer clients detached single-story homes and multi-story homes, all with more than 50 beds, and smaller multi-story or single-family homes with fewer than 50 beds.

Also included within assisted communities are memory care communities, which are independent assisted living communities designed for residents with Alzheimer’s disease and others with dementia who are experiencing cognitive decline and need care. residents to ensure they have a certain quality of life. Memory care communities have 14 to 69 beds, some in school-standard configurations, and include a self-contained assisted living community.

As of the end of 2015, there were 820 assisted living communities with 53,504 rooms, accounting for 49.3% of Brookdale’s entire community capacity; there were 95 communities participating in management services, with 9,063 rooms, accounting for 49.3% of Brookdale’s entire community capacity. 8.4. These assisted communities account for 57.7% of Brookdale's total community capacity. Among them, 571 communities and 14,077 units provide memory care services.

3. CCRCS (Continuing Care Retirement Communities)

Brookdale’s CCRCS communities are large communities that offer a variety of living arrangements and services to accommodate every level of physical condition and health. Most CCRCs include independent living, assisted living and skilled nursing community services, and some communities also have memory care (Alzheimer care) services.

The CCRCs community includes leased CCRCs and third-party CCRCS communities managed and operated by the company. As of the end of 2015, Brookdale had 44 CCRCs communities with 10,423 units, accounting for 9.6% of Brookdale's entire community capacity; 34 communities with 10,944 units were managed and operated by the company, accounting for 10.7% of Brookdale's entire community capacity. These CCRCS communities represent 19.7% of Brookdale's overall community capacity.

As of December 31, 2015, the rental portion of CCRCS communities included 3 "admission fee" CCRCS communities with 1,172 units and 17 "admission fee" CCRCs that Brookdale participated in the management of. There are 8,152 units, accounting for 8.1% of Brookdale's entire community capacity.

4. Brookdale Auxiliary Services (Supporting Services)

Brookdale’s Auxiliary Services currently provide community residents with services such as home health care, therapy, education and health plans. These programs focus primarily on health and physical fitness, with the goal of allowing residents to maintain maximum independence.

In terms of medical services, it mainly provides physical, occupational-related, speech therapy and family health services. Home Health Services provides services including skilled nursing, physical therapy, occupational therapy, speech therapy, home health aide services and social services as needed. In addition, Brookdale also provides hospice services in certain areas. Compared with other competitors, Brookdale's ancillary services have unique advantages due to its position in the industry and rich experience.

5. Management and operation services

Some of the communities managed by Brookdale are owned by third parties or unincorporated joint ventures, but Brookdale enjoys ownership interests. These communities are managed under management operating agreements and corresponding service management fees are charged based on the services provided.

As of the end of 2015, Brookdale provided management services to 164 communities and 27,353 housing units, which accounted for 25.3% of the company's total community capacity. Among them, 22 communities and 2,211 units are owned by third parties; 142 communities and 25,142 units are owned by joint ventures. These communities make up the 35 retirement communities, 95 assisted communities and 34 CCRCs listed above.

Brookdale has become the largest pension company in the United States. 14 years ago, profit growth was slow and even experienced negative growth. After the acquisition of Emeritus, profit growth exceeded 10%. However, increasing revenue is still the primary issue for this listed company:

First, while controlling operating costs, increase community occupancy rates and monthly community service fees. Brookdale plans to maintain the company's growth by continuously improving and optimizing community operations and increasing marketing execution. To this end, Brookdale created a multi-level marketing system that leveraged call center resources through a collection of national, regional and local marketing activities to balance the use of the Internet and company response mechanisms. In addition, this marketing system can also use Brookdale to expand its marketing influence by launching the Brookdale brand innovation campaign in 2013. At the same time, leveraging the good momentum of the merger with Emeritus, we strive to improve the company's operating efficiency and reduce operating costs.

Second, increase company revenue through strategic capital allocation. Brookdale plans to invest part of the funds in the value-added improvement of existing communities, such as the reconstruction and renovation of communities, the re-planning and positioning of some communities, and maximize the advantages of each community to improve the attractiveness of the community. , to increase community occupancy rates; on the other hand, when appropriate, Brookdale will selectively acquire existing operating companies, various portfolio investments, home health care agencies and senior retirement communities to expand its scale. At the same time, mergers and acquisitions will also be considered for the retirement communities that Brookdale currently rents and manages to strengthen resource integration. The strategic focus of acquisitions is still on products that can have an important supplementary role in the company's market.

Third, improve brand influence and focus on cultivating Brookdale’s brand influence. Brookdale plans to build a highly recognizable national brand, create market differentiation and enhance its own brand value by increasing community occupancy rates and growth paths. As the largest senior care service provider in the country, its market scope covers the whole country and its products and services are diversified. This gives Brookdale sufficient advantages to become a leader in the US domestic senior care industry and a provider of solutions for senior care issues. Brookdale hopes that through adjustments, overall marketing activities and brand innovation, more users will recognize the Brookdale brand and form brand loyalty, not only for users, but also for partners and the talents the company needs.

Fourth, innovative products and services, including Brookdale’s supporting services. Brookdale hopes to continuously meet the needs of customers by providing new senior living solutions through innovative product forms. Brookdale plans to provide more new service forms to existing customers and develop new customers. Coupled with Brookdale's supporting services, the company can currently provide ancillary services such as treatment, home health care, hospice care, education and corresponding health plan services. Brookdale hopes to not only provide these services in all of their senior care communities, but they plan to promote these services to users who want to spend their later years in their own homes, so that their products and services can go out of the community and serve more people in need. They hope to occupy a place in the field of follow-up medical care and provide users with more comprehensive elderly care solutions.

Brookdale - From its establishment in 1978 to its listing in 1997, Brookdale has completed the transformation into the largest senior care company in the United States through continuous mergers with other companies in the same industry. Its development model is no less than A magnificent history of industry mergers. While Brookdale has completed its own transformation, it has also greatly promoted the development of the US senior care industry. Its spirit of innovation and expansion of industry models are worth learning from companies in various industries today.

Since Brookdale's development, its scale and industry status have been unmatched by anyone. However, from the perspective of its business strategy, its pace of development and expansion has not stopped. After having a series of relatively comprehensive service models in the industry such as self-care nursing communities, assisted senior care communities, retirement centers and CCRCs, the development of its product services has not yet stopped.

In Brookdale's 2015 annual report, it still proposed to increase community occupancy rates and monthly community service fees while controlling operating costs; increase company income through strategic fund allocation; increase brand influence, Focus on cultivating Brookdale's brand influence; innovating products and services, especially Brookdale's supporting service projects, to promote the company's forward development. Currently, Brookdale Senior Care Company firmly occupies a large share of the US senior care market with its unprecedented scale and strength. It is not easy for other senior care companies to catch up and surpass them.

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