NIC’s Strategic Plan includes objectives to ‘expand the tent’ across five key focus areas – Active Adult, AgeTech, Capital for Operations, Middle Market, and Partnering for Health. Focus Area Committees (FACs) were formed to support these efforts. The Capital for Operations Committee is led by Chair Fee Stubblefield, Founder & CEO of The Springs Living. I had a chance to talk with Stubblefield and hear his thoughts about this important committee.
How did you first get involved with NIC as a volunteer?
I have been attending NIC Conferences since 1997 and started volunteering as a member of the Operator Advisory Board in 2018.
You are the chair of the Capital for Operations Focus Area Committee. Can you tell us about the composition of the committee?
The Capital for Operations Committee is a diverse group of capital and operators passionate about finding new ways of understanding, supporting, and providing capital. The fifteen committee members have various backgrounds and experiences in all aspects of senior housing and care, which enables us to engage in robust discussion as we work together over the next two years. We have organized the committee into three sub-committees working to create a glossary for Capital for Operations, understand how other industries have evolved and structure agreements with operations, and finance cash flow in operations which is separate from real estate financing.
Why do you think it’s important for NIC to focus on Capital for Operations?
Even the largest capital provider cannot afford to own buildings without paying customers and its operations that access the financial resources of the customer. Simply said, no quality operations, no quality returns. The industry has relied on real estate to finance much of the capital structure, but senior housing and care must find ways to finance and invest in operations as growth accelerates in the decade ahead.
The Capital for Operations effort is not only about enhancing sources of capital for operations but it’s also about the recognition that operations matter. In fact, the real estate values are inexplicably tied to the quality of operations and the key for fulfilling our promises to not only older adults but to our capital providers.
What does the Capital for Operations Committee aim to accomplish in the next year?
Creating clarity around Capital for Operations is the number one goal. Along those lines, we want to get a general agreement on definitions around Capital for Operations. In addition, we aim to submit recommendations for Capital for Operations content to the Conference Program Committees, research, data, and analytics to the Research Committee, and educational and training programs that NIC can offer through NIC Academy.
Interested in Capital for Operations? Be sure to attend Fee’s discussion with Pete Stavros, Founder and Chairman of Ownership Works – Creating Shared Success: Investing in an Ownership Culture at the NIC Fall Conference in Washington, D.C.!