Three quarters of the estimated 16 million ‘middle market’ seniors age 75+ won’t be able to afford senior housing in 2033, with half of those individuals projected to have three or more chronic conditions and potential mobility issues.
The Milken Institute’s Financial Innovations Lab® and Center for the Future of Aging Research shared potential financing and scaling solutions that operators and investors should consider. The work was underwritten through a grant from NIC and CVS Health. Discussions with leaders in healthcare, senior housing and long-term care delivery, finance, technology, government, philanthropy and academia, yielded potential solutions. Ideas to advance solutions for the middle market are summarized in Innovative Financing and Care Models to Scale Affordable Housing Solutions for Middle-Income Older Adults.
In-Depth Resources:
- Repurposing Distressed Assets as a Solution to Serve the Middle Market: Read NIC’s key takeaways for the Milken Financial Innovations Lab report.
- Report Executive Summary: View key findings of the report
- Full Report: Access the complete Milken report
Four strategies to better serve “middle market” seniors:
- Repurpose distressed senior living properties through a pilot refinancing/restructuring program
- Design a revolving loan fund to provide a sustainable source of capital long-term
- Implement a pay-for-performance model that delivers long-term cost savings
- Launch a value-based regional pilot partnership between senior housing operators and payers
NIC seeks to educate and convene stakeholders on this critical challenge, laying the groundwork in “The Forgotten Middle,” which appeared in the policy journal Health Affairs in 2019.
Chip Gabriel, NIC board member and Partner, Senior Living TransFormation Company LLC
“It’s time to put new financing models to the test to create the housing we know more older adults will need.”
