Florida Assisted Living Facility Market: Higher concentration of retirees in Florida owing to no tax on retirement income is expected to drive the market growth
Rising geriatric population due to the increasing life expectancy in the region is expected to drive the growth of the market. According to the United States Census Bureau, in 2020, the population aged 65 years and above was around 4.6 million which accounted for 21.3% of the total population in Florida. Florida ranks 2nd after Maine for the percent of the population aged 65 years and above. The average life expectancy in Florida is 80.2 years which is higher than the national average and ranks 10th among other states. Moreover, the rising demand for the assisted living in the Florida from retirees is expected to propel the growth of the market in the region. Florida has no state income tax, and it also does not tax Social Security payments or retirement income. As per Florida Health Care Association, around 3,080 licensed assisted living facilities are present in Florida which consists of around 106,103 beds.
Assisted living facilities in Florida are regulated by the Florida Agency of Healthcare Administration (AHCA). The Florida AHCA stated Florida ALF Resident Care Standards, Florida ALF Food Services Standards, and Florida ALF Physical Plant Standards that governs the assisted living facilities in Florida. Moreover, the Florida House and the Florida Senate introduced the “No Patient Left Alone Act,” in 2022. As per the act, assisted living facilities, licensed nursing homes, and hospitals are required to allow physical visitation to patients/residents for at least 2 hours.
Rising investment and favorable government policies for assisted living facilities are expected to increase the demand for assisted living facilities in Florida. Florida provides a Long-Term Care Waiver that can aid people to pay for care in assisted living facilities. The waiver is provided only to people aged 65 years and above and are residents of Florida. Moreover, the Program of All-Inclusive Care (PACE) provides medical coverage to frail senior citizens in Florida who are ineligible under Medicaid.
The costs associated with the assisted living facilities in Florida are more favorable when compared with other states such as North Carolina. The average cost of assisted living in Florida is around USD 3,500. The cost varies from the city in Florida, Naples has the highest cost of assisted living as it is the most popular city for retirement. The average cost of assisted living in Naples is around USD 5,300 and around USD 2,300 in Gainesville.
The COVID-19 pandemic has drastically affected the assisted living facility market in Florida. The facilities were temporarily closed and visits were not allowed due to the increased number of cases and deaths pertaining to COVID-19. According to the Kaiser Family Foundation, in August 2020, around 911 resident cases and around 1,683 staff cases were reported for COVID-19. The shutdown of the facilities and decreased number of admissions for assisted living resulted in financial losses for the assisted living facilities in Florida. As per Argentum, in Florida, the senior living providers including assisted living facilities reported a loss of around USD 2.38 billion in 2020 and till the 2nd quarter of 2021. Among the losses around 98% losses were uncompensated and 2% of the total loss was provided as relief to offset COVID-19 expenses. Around 1,750 facilities were operating at loss during the period in Florida.
The technological advancements for assisted living facilities and the introduction of easy-to-use devices are expected to propel the growth of the market. For instance, in October 2021, assisted living facilities in Gainesville introduced virtual reality for their residents. Oak Hammock offers a VR experience weekly to its residents at the University of Florida. Residents can experience a variety of adventures with the aid of VR goggles including travel, skydiving, or balloon rides.
Some of the prominent companies operating in the assisted living facility market in Florida are Sonata Senior Living Community, Angels Senior Living, Better Days Senior Living, The Capstone at Royal Palm, Brookdale Dr. Phillips, Oak Hammock, Mission Oaks Memory Care, Marrinson Senior Care Residences, Madison At Ocoee, and many others.
The key players in the market are adopting various strategies including building new facilities, improving access and care, and many others to stay competitive in the market. For instance, in March 2022, Solutions Advisors Group opened Sunscape Daytona Beach, a senior living providing assisted living and memory care services in Florida.
In-depth report on Florida Assisted Living Facility market by Grand View Research:
https://www.grandviewresearch.com/industry-analysis/us-assisted-living-facility-market