Executive Summary Emeritus Corporation has in business for 20 years and has only seen a profit in 2005. Their main focus is to take advantage of the current real estate market by acquiring facilities at extremely reasonable prices. Emeritus has grown from 26 communities in 15 states to 478 communities in 44 states. Emeritus is one of the largest assisted living facilities in the United States. Emeritus offers many different types of services all centered around senior care, but like many industries, customer service is the key differentiator. Family members want their loved ones well cared for, safe and secure in their environment, and happy. Emeritus has excellent training opportunities for staff on their role in residents’ happiness and care. Many competitors in the industry have been operating at a loss. Emeritus is no exception; their debt is exorbitant. In 2012, their financial statement shows they earned 97.7 million in operating profits, but had 176.945 million in interest expense. Reducing their debt, cutting expenses, and capitalizing on their employees talents will enable them to have an optimistic future.
History/Overview of the Emeritus Corporation
Emeritus was founded in 1993 by Daniel Baty, Ray Brandstrom and Frank Ruffo. With their combined experience, they decided to start an assisted living facility focused on providing affordable pricing and high quality service to seniors who needed help with the activities of daily living (“Emeritus Senior Living,” 2013).
Emeritus went public on the American Stock Exchange in 1995. At that time, Emeritus owned 26 communities in 15 states. Emeritus acquired Summerville Senior Living in 2007, and it was at that time when Granger Cobb and many of the other senior management staff joined Emeritus (“Our history: About Emeritus Senior Living,” (n.d.).
“As of December 31, 2011, Emeritus operated 478 senior living communities in 44 states” (“Emeritus Corporation 2011 annual report,” 2012). “The communities consisted of approximately 42,600 residential rooms or suites with a resident capacity for approximately 49,700 residents” (“Emeritus Corporation 2011 annual report,” 2012). Their Operated Portfolio includes 297 communities that offer Alzheimer’s and dementia (memory care) services. The Company provides residents with a private or semi-private residential unit and charges a monthly fee based individual service needs (“Emeritus Corp,” 2013).
The residents of Emeritus are provided basic services that include meals and snacks, weekly housekeeping and linen service, apartment maintenance, social and recreational activities, 24-hour emergency response system, and transportation to appointments and excursions. Licensed nurses are available to evaluate the residents care needs and to help promote wellness.
The Assisted Living communities provide additional services based on a recommended level of care or assistance required for the activities of daily living (ADL). ADL’s are dressing, bathing, dining, grooming, and personal hygiene. Each community has approximately six levels of care ranging in price from $565 per month to $1851 per month based on location. A level of care includes assistance with ADLs and other services such as “medication management, recreational activities and social support, behavior modification and management, and diabetes management, among other services” (“Emeritus Corporation 2011 annual report,” 2012).
Emeritus has a memory care program entitled Join Their Journey. It is designed to meet the health, psychological, and social needs for their residents with diagnosed Alzheimer’s or related dementia. Through this approach, aides can recognize individuality, encourage choices, and allows residents the ability to live in a way that is most familiar to them. The aides learn to accept the resident’s reality in order to create a safe and comfortable environment (“Emeritus Corporation 2011 annual report,”
