A family physician who also happens to be a real estate investor has made the case for physicians investing in residential assisted living homes as an opportunity offering both financial security and the chance to make a “meaningful impact” in the lives of older adults.
In a KevinMD.com blog, Alex Schoe of Colorado Springs, CO, talked about the growing aging population and older adults’ preference for a home-like setting over large, institutional environments. Assisted living, he said, offers a more “personal and comfortable living situation” with a higher caregiver-to-resident ratio, something he said is attractive to families.
Schoe noted the nation’s deficit of assisted living beds, which is expected to grow. He also said physicians are well-positioned to invest in such settings and transform the assisted living landscape by providing “compassionate, high quality care.”
“Your medical background and commitment to patient care can help set a new standard in the industry, ensuring that elderly residents receive the best possible support in a nurturing environment, allowing them to live out their days in a community that cares,” Schloe wrote.
He outlined two approaches to investing in the sector, depending on how active someone wants to be in the business. The lease-to-operator model, he noted, provides a stable income, with an operator handling all day-to-day management and responsibilities.
He contrasted that model with the owner-operator model, providing a more hands-on approach, which could yield higher returns.
“Residential assisted living homes represent an unparalleled investment opportunity for physicians to ride the silver tsunami while generating substantial cash flow and providing exceptional care,” Schloe wrote.
