This season's edition of The Capital Issue features a guest column by Lee Buckner, partner at BBH Design, on the Critical Access Hospital Prototype Study, as well as a timely article on the housing market's effect on affordable housing. In Senior Living, Lancaster Pollard client Palm Village in California is trying an innovative new project that offers home ownership within a Continuing Care Retirement Community, and we are pleased to share their story.
As always, if you have any suggestions on topics you would like covered, please contact editor Elizabeth DeForest. We remain at your service.
Thomas R. Green, CEO
Organizations that do not have immediate capital plans should understand how their actions today can affect their borrowing ability months and years down the road. Leaders who monitor the stew that is the credit profile, and all of the various financial ratios and other ingredients that go into it, should always keep an eye on the back burner.
Experience shows that building a replacement hospital can be more efficient, and sometimes less expensive, than refurbishing or updating an existing facility. Yet replacing a hospital in today’s constantly-changing health care environment presents the complex design challenge of adapting to future technologies and health care delivery methods. Construction efficiency and adaptability are especially important to remote communities with limited resources, where most rural hospitals are approaching 50 years old and contending with inadequate or inefficient space.
A unique partnership between a Continuing Care Retirement Community and a developer has created what could be both an appealing housing option for younger seniors and a financially sound way for the CCRC to expand market share and attract new residents.
As interest rates fluctuate, the current thoughts on single-family residential housing tend to be that prices have peaked in many markets and are starting to drop. Inventories of unsold homes rose to a 13-year high, and sales have dropped by 0.5 percent in August to the lowest pace since January 2004.
One of the questions most frequently asked of Lancaster Pollard has been whether it is time to pull the trigger and execute a fixed-rate swap. It has been a logical question, as short- term rates have risen and organizations and their boards are coping with more dynamic balance sheets.