Senior Living and Care Glossary

Absorption rate measures how quickly units fill; typical senior living communities absorb 3-8 units per month during lease-up.

Active adult communities are age-restricted neighborhoods offering resort-style amenities without care services.

ADA compliance ensures senior living facilities are accessible to residents with disabilities.

ADLs are six basic self-care activities: bathing, dressing, eating, toileting, transferring, and continence.

Adult day care centers provide daytime supervision and activities for seniors, allowing family caregivers to work or have respite.

Aging in place allows seniors to remain in their homes with support services rather than moving to institutional care.

Ancillary services add $200-$800+/month per resident in revenue beyond base rent and care fees.

Assisted living combines housing with personal care services for seniors who need help with daily activities but want to maintain independence.

Cap Rate is a key metric for real estate investment returns, typically ranging from 4-8% for senior living properties.

Care plans guide coordinated care delivery by documenting individual needs, goals, and specific interventions for each resident.

Cash-on-cash return shows the annual cash return as a percentage of cash invested, typically 8-15% for senior living.

CCRCs provide a continuum of care from independent living to nursing care, allowing residents to age in place as needs change.

Census management tracks daily occupancy and drives revenue optimization through admissions, discharges, and marketing coordination.

Chronic disease management helps seniors with conditions like diabetes and heart disease maintain health through coordinated care.

CMS Conditions of Participation set quality and safety standards for skilled nursing facilities.

Cognitive assessments help determine mental capacity and appropriate care levels for seniors with memory concerns.

Construction loans provide temporary financing during building, converting to permanent financing upon completion.

The continuum of care provides a full spectrum of services — from independent living to memory care to skilled nursing — ideally on one campus.

Cost per unit benchmarks development and acquisition pricing; new construction ranges from $150K-$400K+ per unit depending on acuity and market.

Debt yield measures loan risk by comparing property income to loan amount, with 10-12% typical for senior living.

Dining services offer nutritious meals, social dining experiences, and dietary accommodations for residents.

DSCR shows if a property generates enough income to cover loan payments, with 1.20x+ typically required for senior living.

EBITDAR measures operator profitability before real estate costs, enabling comparison across owned and leased communities.

EHR systems improve care coordination by digitizing health records and enabling real-time information sharing.

eMAR systems reduce medication errors and improve compliance documentation by digitizing medication administration workflows.

Entitlements are the government approvals needed before construction can begin, often taking 6-18 months.

Equity multiple shows the total return multiple on invested capital, with 1.8-2.5x typical for senior living investments.

Exercise programs help seniors maintain physical function, prevent falls, and improve overall health.

Fall risk assessments identify seniors at high risk for falls and guide safety interventions.

Fire safety regulations require sprinkler systems, alarms, evacuation plans, and staff training.

The Five-Star rating helps consumers compare nursing home quality on a 1-5 scale across inspections, staffing, and clinical outcomes.

HCBS waivers enable Medicaid to pay for assisted living and home care as alternatives to nursing home placement.

HIPAA compliance protects resident health information through privacy policies, staff training, and secure record-keeping.

Home health care brings medical and personal care services to seniors in their homes, supporting aging in place.

Hospice care provides comfort-focused medical care and emotional support for terminally ill patients and their families.

HUD 232 loans offer government-backed financing with higher leverage, longer terms, and non-recourse structure.

IADLs include managing finances, medications, transportation, housekeeping, and meal preparation.

Incident reporting documents falls, medication errors, and safety events to drive prevention and maintain regulatory compliance.

Independent living provides maintenance-free housing with optional services for active seniors who don't need daily care assistance.

IRR measures the annual return rate of an investment over its holding period, with senior living typically targeting 12-18% IRR.

Senior living facilities must obtain state licenses and meet ongoing regulatory requirements.

NFPA 101 is the fire safety standard that governs senior living building codes, evacuation planning, and fire protection systems.

Long-term care insurance helps pay for extended care services including assisted living, memory care, and home care.

LTV measures loan risk, with senior living typically financing at 70-80% LTV depending on property quality and borrower strength.

Penetration rate measures market saturation; lower rates suggest stronger demand relative to supply.

MDS assessments drive care planning, reimbursement, and quality reporting in skilled nursing facilities.

Medicaid can help pay for long-term care including nursing home care and some assisted living through waiver programs.

Medicare provides health insurance for seniors but has limited coverage for long-term care services.

Medicare Advantage plans bundle Parts A, B, and often D with extras; increasingly offering supplemental benefits for senior living.

Medication management ensures seniors take the right medications at the right time, reducing errors and health risks.

Memory care provides specialized, secure housing and care for people with dementia and Alzheimer's disease.

The "forgotten middle" represents the largest unmet need in senior housing — millions of seniors who fall between Medicaid and private-pay affordability.

Community fees typically range from $1,000-$5,000 and are a standard one-time charge for new move-ins.

NIC MAP is the industry's primary market intelligence platform for senior housing supply, demand, and investment data.

NOI is gross rental income minus operating expenses, used to calculate cap rates and evaluate property performance.

Nurse call systems provide critical safety communication between residents and staff.

Nutrition screening identifies seniors at risk for malnutrition and guides dietary interventions.

Occupancy rate is a critical performance metric; the national average for senior living is approximately 83-87%.

An Opportunity Zone Fund is a tax-advantaged investment vehicle for real estate in designated low-income areas, offering up to 15% capital gains reduction with a 10-year hold.

Palliative care improves quality of life for seriously ill patients through symptom management and emotional support.

PDPM replaced RUG-IV, basing SNF reimbursement on patient clinical profiles rather than therapy minutes.

Permanent financing provides long-term mortgage funding for completed and operating senior living facilities.

Person-centered care puts the resident's preferences, dignity, and individual needs at the center of all care decisions.

Physical therapy in senior living helps maintain mobility, prevent falls, and maximize functional independence.

Polypharmacy increases the risk of drug interactions and falls; medication reviews can reduce unnecessary prescriptions.

Preferred return is the minimum annual return LPs receive before the sponsor earns any profit split, typically 6-10% in senior living deals.

Private pay is the most common payment method for assisted living, used by approximately 90% of residents.

QAPI is a systematic, data-driven approach to improving care quality and safety in nursing homes.

Senior living REITs allow investors to own shares of diversified senior housing portfolios with dividend income.

Resident rights guarantee dignity, privacy, self-determination, and freedom from abuse or restraint in senior living.

Resident satisfaction surveys measure quality of life and service delivery, directly impacting reputation and referrals.

Respite care offers temporary relief for family caregivers through short-term professional care services.

Short-term respite stays serve as a sales funnel tool and revenue filler while providing families with caregiver relief.

RevPOR tracks revenue intensity per resident and is a key metric for evaluating pricing strategy and ancillary service revenue.

RevPAR measures revenue efficiency in senior living, combining occupancy and pricing to evaluate operational performance.

RIDEA lets senior living REITs capture operating upside rather than just collecting fixed rent from operators.

RPM uses connected devices to track vitals like blood pressure and glucose levels in real time, enabling proactive clinical intervention.

The Silver Tsunami refers to 10,000+ Americans turning 65 daily, driving massive demand for senior living through 2040.

Skilled nursing facilities provide round-the-clock medical care for seniors with complex health conditions requiring professional nursing.

Smart home technology helps seniors age in place safely through automated lighting, security, and health monitoring.

Social activities combat isolation and depression by providing opportunities for residents to interact.

Staff turnover in senior living averages 50-75% annually, costing $3,000-$5,000 per caregiver to replace.

Staffing requirements ensure adequate care through minimum ratios, training standards, and professional qualifications.

Telehealth brings medical care to seniors through video calls and remote monitoring, improving access and reducing travel.

TPE audits target providers with billing anomalies; passing requires clean documentation and coding practices.

Transportation services help seniors maintain independence and access community resources.

Triple-net leases shift all property expenses to the operator, providing predictable returns for senior living property owners.

VA Aid & Attendance can help eligible veterans pay for assisted living through monthly pension supplements.

Value-add investing targets senior living communities with upside potential through renovations, management changes, or repositioning.

Waterfall structures define how investment returns are split between LPs and GPs through tiered performance hurdles.

Wearable devices monitor seniors' health and safety, providing fall detection, health tracking, and emergency alerts.

Wellness programs improve resident health outcomes through exercise, nutrition, social activities, and preventive care.

Wound care in senior living includes assessment, treatment, and prevention of pressure sores and other wounds.