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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Assisted Living Facility SWOT Analysis

 

Strengths

 

Assisted living facilities are generally immune from negative changes in the economy. This is wholly due to the fact that these companies provide an important ongoing service to elderly people, people with developmental disabilities, and people that require round the clock care. As such, these companies are able to continue to generate revenue even during a recession. Additionally, assisted living facilities are able to bill private insurance and publicly funded healthcare systems for their services. This allows many individuals, who would not otherwise be able to afford assisted living care to have access to round the clock care. The barriers to entry from these companies is high.


Weaknesses

 

Given the secure nature of assisted living facilities, there is usually a tremendous competition in each market where these companies operate. The startup costs associated with starting a new business is very high. Additionally, there are ongoing licensure requirements that must be adhered to at all times. This translates into higher operating costs. Finally, assisted living facilities require highly specialized and trained personnel. In more rural markets, it may be hard to source people that can provide these services.

 

Opportunities

 

Generally, most assisted living facilities top out their revenue once they reach 100% occupancy. However, some assisted living facilities integrate hospice and palliative care into their services for elderly residents. It should be noted that this is an expensive upgrade given that a licensed medical doctor usually needs to be retained in order to prescribe and administer drugs that are normally used during the course of palliative care. Many assisted living facilities expand by developing a new location.

 

Threats

 

The ongoing threat faced by assisted living facilities is their ongoing need to maintain an air-tight budget given that there are frequent cuts from private insurance companies, Medicare, and Medicaid. This is going to be a major ongoing issue for these businesses for the foreseeable future.


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