Engineering a Turnaround:
An Emerald Communities Case Study
Situation Overview
Emerald Heights Community Click Here to Learn More-
1992- Founded as a non-profit, single-site senior living community
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1992-2008- Successful operation as the only Type A CCRC (Life Plan community) in the Seattle area
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2008- Entrance fees are used to subsidize operations, creating a negative net-operating income
- Competition entered the marketplace, pushing Emerald Heights to make strategic decisions to avert potential loss of market share
Turnaround Master Plan
Concept to completion: 2008-2014
Led by the new executive team (now Emerald Communities executive team) and a strong, committed board of directors
Project launches with in-depth study of existing facilities and services
Comprehensive Master Plan strategy developed and executed to meet the desires of current senior prospects
Modernize, update and re-brand for long-term viability with a Pacific Northwest architectural style
Increase revenue to offset additional amenity and operational costs
Realign operations to improve efficiency while maintaining quality of services
Establish financial accountability across all departments
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On-time -
On-budget -
Maintained high occupancy with no discounts -
Strict plan of risk management
- Prioritizing projects -
- Sequencing steps -
- Contingency plans -
A- Fitch Rating
“You want to take care of current residents and improve their situation. But you also need to think about your future residents. Because in order to be successful long term, you have to meet the needs of the marketplace.”