Economic Challenges: Insight on Issues that Impact Future Viability

Robin Eggert, MA and Judy Jewison, OP, PhD

Taken alone, data is simply that:

data.

However…

when data is woven together, it tells a compelling story about the changing realities facing women religious.

This suitcase holds the most up-to date data available at the time of production, and is displayed in easy-to-use maps, graphics and tables.

DemographicsDemographic Changes Create an Urgent Need.

35%

2008:

Members Over Age 75

Fast Forward

76%2023:

Members Over Age 75

Members Over Age 60

2007: 82%Over 60 Under 60

What does this meanfor your community?

Fewer…sister driverssister companionssister-provided serviceswage earning sisters

What does this meanfor your community?

Decrease in contributed service by members

increase in paid staff

=

Changing Expectations

Competing Emotional Challenges

Sisters living in small communities today

Sisters who have spent the majority of their lives in large, institutional settings

Changing Expectations

Are sisters coming to the infirmary…Frailer? Older? In fewer numbers?

Are the number of sisters in your infirmary decreasing?

Is your cost of care increasing?

Aging TrendsAging-in-Place

Average Length of Stay

The American Elder Reality

14% of Americans 85+ live in a skilled nursing facility

86% of Americans 85+ continue to live in a

place they call HOME.

American Reality

Nursing facility residents, beds and occupancy rates have remained constant

over the last 5 years…

despite an increase in the older population.

SummaryNational Cost of Care

National Findings Skilled Nursing Assisted Living

National Your Community

National Your Community

2008 Average Annual Rate/Person

$ 77,380 $ _______ $ 36,372 $______

2008 Median Annual Rate/Person

$ 73,000 $ _______ $ 34,800 $ _______

2008 High Average Annual Rate/Person

$ 210,605 $ _________ $ 56,496 $ _______

2008 Low Average Annual Rate/Person

$ 46,355 $ _________ $ 23,760 $ _______

FACT:Most Americans Cannot Afford Private Pay Skilled Nursing.

FACT:The Majority of U.S. Nursing Homes have between 100-199 beds.

Data demonstrates it is NOT financially efficient

to operate a skilled nursing unit

for less than 50 residents.

Skilled nursing needs to be

50+ beds to be operationally efficient.

FACT: 74% of females ages 75-84 will be in skilled care less than one year.

Operational Competency

Opportunities for Enhancing Quality of Life

Is it your Core Competency

to run a retirement center?

= SENIOR CORE COMPETENCYCHARISM + TRAINING

Question:Do you have the “Centers of Excellence” necessary to operate a retirement center?

Centers of Excellence

1. Clinical 2. Social Work 3. Dementia 4. Wellness 5. Life Enrichment

1.

2.

1.

2.

1.

2.

1.

3. 3.

4.

2.

1. 3.

4.5.

Questions to ask yourself• How can we be creative & responsible in both caring for

sisters and supporting our ministries?• How can we keep sisters as independent as possible for

as long as possible?• How can we engage sisters in such ways that their lives

are integrated into ministries?• How can we embrace vital living?• How do we empower sisters to be responsible for their

healthy living?• How can we reduce our cost of care/operations?

FinancialThere is a strong economic

incentive for action…

Unfunded Retirement LiabilityOf the 681 religious communities providing data to NRRO, only

54 are adequately funded.

Unfunded Retirement Liability

Of the 681 religious communities providing data to NRRO,

181 are less than 20% funded.

Unfunded Retirement LiabilityOf the 681 religious communities providing data to NRRO,

258 are less than 40% or less funded to care for their elderly.

Imagine the REALM of Possibilities

Innovative Approaches

Bridging the Gap

Your Current

Situation

Your Dream for the Future

In order to Bridge the Gap

You need to go through this

process

For the sake of life.For the sake of mission.

What REALM wants Women Religious Leaders to know…• Honor stewardship• Release energy for mission• Be transparent• Collaborate• Transition “retirement” - embrace “refirement”• Scenario planning and systems thinking to support

wise actions• Value evidence-based decision making

• The time is now.

4920 Safari PassSt. Paul, MN 55122p: 651-452-0101 f: 651-686-4914

eggert@realmgroupinc.com

www.realmgroupinc.com

Robin Eggert, MAPresidentSo…

Are you looking to repack for the future?

Sources1. National Religious Retirement Office (NRRO) 2007 Annual Report.

2. AARP Across the States 2009

3. MetLife Market Survey of Nursing Home and Assisted Living Costs, October 2008

4. Georgetown University Long-Term Care Financing Project, “National Spending for

Long-Term Care” fact sheet, February 2007

5. CDC/NCHS, National Nursing Home Survey, Selected Years

6. Centers for Disease Control and Prevention

4920 Safari Pass, St. Paul, MN 55122p: 651-452-0101 f: 651-686-4914www.realmgroupinc.com

Explore new directions.

Move beyond the REALM of Possibilities.