Boca Bound! -- FAHSA's 45th Annual Convention and Exposition -- "Riding the Wave" -- begins on Sunday, July 27, and runs through Thursday, July 31. Due to the travel schedules of the FAHSA staff, the Link will not be published next week.  Look for the post convention edition on August 7, 2008.
 
Order Your Copy of Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant - Ralph Trombetta, MBA, will reveal the many secrets to business success during the Opening Keynote Session, sponsored by Ponce de Leon LTC RRG, on Monday, July 28, at FAHSA's 45th Annual Convention & Exposition.  The book, published by Harvard Business School, will not be available for purchase during the convention, but can be ordered today, just in time for the Convention by clicking here.  To register for the Convention, go to FAHSA's Web site and click on the Calendar/Event page and register online. 

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Resident Contract Types:  What's the Trend? -- With the economy in a slump, continuing care providers are asking if competitors are modifying the contract type(s) that are offered not only by continuing care but also rental retirement communities.  Ziegler Capital Markets' research department completed a report on this very topic. The information that follows was taken from the July 11, 2008 Z-News written by Kathryn Brod, Sr. Vice President, Director of Senior Living Finance Research.

First, a review of the various resident contract types (that differentiate which health care benefits are made available to residents at what cost) may be helpful: 

 

From Ziegler's New Community Database, we know that the Type A contract is not as prominently offered as in the past. From 1990 through 2000, the Type A contract was chosen by forty percent of new developments, with no other form of contract reaching twenty percent. In the more recent period of 2001 through 2008, however, Type A and B contracts were each offered roughly twenty-five percent of the time, with Type C contracts (at roughly 15%) far less common and Type D contracts relatively rare.

While entrance fee communities may offer multiple refund options, it is less common for new communities to offer multiple resident contract types (as described above) when they open. In 2007, for example, seven of the fourteen new communities financed offered multiple refund options; just two, however, offered multiple resident contract options.
Tracking resident contract types for existing CCRCs is a more challenging exercise.  Anecdotally, Ziegler knows that some providers may add resident contract options in order to provide incoming residents with additional options, or perhaps to compete with other senior living products in their marketplace.
Source:  Ziegler Capital Markets

District and Membership News

FAHSA Welcomes Jeffrey Freimark, Miami Jewish Home's New CEO -- Jeffrey P. Freimark, CPA, has been named Chief Executive Officer of the Miami Jewish Home and Hospital, the largest provider of geriatric healthcare in the Southeast.  Mr. Freimark assumed his responsibilities on July 28th, overseeing two campuses and multiple community-based programs supported by an annual budget of $110 million and more than 1,400 employees. 
 
The announcement was made by Stephen H. Cypen, Chairman of the Board of Directors, who said, "We are delighted that Jeff Freimark has joined our well-respected team of professionals.  His extensive background in healthcare, coupled with his managerial skills in leading multi-billion dollar organizations, is the right combination to ensure the Miami Jewish Home remains a premier provider of healthcare services."
 
Mr. Freimark has had a distinguished career, serving most recently as Executive Vice President, Chief Financial Officer and Chief Information Officer at Intelsat, Ltd., a $2 billion private equity-owned corporation that is the largest operator of commercial satellites in the world.  During his tenure, Mr. Freimark directed internal financing efforts in preparation for the company's sale valued at $16.1 billion with an equity value of $5.1 billion.  His previous positions include Executive Vice President, Chief Financial and Information Officer at Beverly Enterprises, a $2 billion public corporation operating healthcare facilities.
 
Commenting on his new position, Mr. Freimark said, "My biggest challenge is one familiar to most healthcare executives -- meeting new and increasingly more complex medical, nursing and social service needs while adjusting to declining reimbursement rates."
 
A former South Floridian and graduate of New York Law School, Mr. Freimark is an attorney who also received an MBA from New York University Stern School of Business and a BA in accounting from the University of South Florida. 

 

 

 

 

Dr. Laverne Joseph to Receive AAHSA Award -- Dr. Laverne R. Joseph, president and CEO of Retirement Housing Foundation, Long Beach, Calif., is the 2008 recipient of AAHSA's Award of Honor, their highest award. AAHSA is honoring Dr. Joseph because of his leadership, vision and advocacy as one of the nation's foremost champions of affordable housing and supportive services for older adults. He, along with all of the 2008 award recipients, will be honored at the AAHSA Annual Meeting & Exposition in Philadelphia, Pa., Oct. 12-15. Please join us in congratulating these winners for their commitment to healthy, affordable, ethical aging services that people can trust. Contact: Deborah Cloud, AAHSA, (202) 508-9458
 
IRS Increases Mileage Rates -- In recognition of recent gasoline price increases, the IRS announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. They are also used on Section 8 properties when determining medical expense deductions (See Exhibit 5-3 of HUD Handbook 4350.3 Revision 1, Change 2). The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70. The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile. The new rates are contained in Announcement 2008-63 on the optional standard mileage rates. Source: Housing Credit College, Elizabeth Moreland
 

 

Sandhill Cove Hosts Luncheon Meeting on Amendment 5 -- On Wednesday, Sandhill Cove, a continuing care retirement community in Palm City, hosted a luncheon meeting sponsored by the Palm City Chamber of Commerce and Stewart/Martin County Chamber of Commerce on proposed constitutional Amendment 5.  Approximately 150 people attended the event, including resident leaders from five FAHSA member continuing care retirement communities.
 
A number of local and state elected officials were in the audience, including Senate President Ken Pruitt (R-Port St. Lucie) who introduced the keynote speaker Senator Mike Haridopolos (R-Melbourne).  Haridopolos, a rising star in the Senate, is the founder of Protect Florida's Future (www.ProtectFloridasFuture.com) -- an organization dedicated to finding good solutions to Florida's economic future. Haridopolos referred to Amendment 5 as a "bait and switch" tax proposal that will do more to harm Florida's economy than help it. He said the numbers do not add up. If the State sales tax is increased by a penny, the revenue hole created by Amendment 5 would still be about $7 billion. The Legislature would have to do for more than eliminate all current sales tax exemptions to make the difference. In addition, Haridopolos pointed out that the sales tax is not a reliable source of revenue since income from it vacillates with the economy. 
 
Our sincerest thanks to David Grofic for organizing the event and to the owners, staff and residents of Sandhill Cove for their hospitality.