AlerisLife Inc. operates senior living communities in the United States.
Segments
The company operates in two segments, Residential and Lifestyle Services.
Residential
The Residential segment owned and operated or managed, 141 senior living communities located in 28 states with 20,105 living units, including 10,423 independent living apartments, 9,636 assisted living suites, which includes 1,872 of its Bridge to Rediscovery memory care units, and one continuing care retirement community (CCR...
AlerisLife Inc. operates senior living communities in the United States.
Segments
The company operates in two segments, Residential and Lifestyle Services.
Residential
The Residential segment owned and operated or managed, 141 senior living communities located in 28 states with 20,105 living units, including 10,423 independent living apartments, 9,636 assisted living suites, which includes 1,872 of its Bridge to Rediscovery memory care units, and one continuing care retirement community (CCRC), with 106 living units, including 46 skilled nursing facility (SNF), units that was closed in February 2022. The company managed 121 of these senior living communities (18,005 living units) for Diversified Healthcare Trust (DHC), and owned 20 of these senior living communities (2,100 living units).
As of December 31, 2021, the company transitioned the management of 107 senior living communities with approximately 7,400 living units to new operators. In September 2021, the company’s former lease with Healthpeak Properties Inc. (PEAK) for four communities (with approximately 200 living units) was terminated. The foregoing numbers exclude living units categorized as out of service.
Lifestyle Services
The Lifestyle Services segment provides a suite of lifestyle services, including Ageility rehabilitation and fitness, Windsong home health and other home based, concierge services at senior living communities the company owns and operates or manages, as well as at unaffiliated senior living communities. As of December 31, 2021, the company operated ten inpatient rehabilitation clinics in senior living communities owned by DHC, all of which are in communities that were transitioned to new operators during the year ended December 31, 2021.
As of December 31, 2021, the company operated 205 outpatient rehabilitation clinics, of which 106 were located at Five Star Senior Living (Five Star) operated senior living communities and 99 were located within senior living communities not operated by Five Star. The company provided Ageility rehabilitation services to approximately 17,000 clients in 2021. As of December 31, 2021, it provided Ageility fitness services in 199 senior living communities. In December 2021, the company closed 17 outpatient rehabilitation clinics that were in senior living communities that were transitioned to a new operator in 2021 or closed in February 2022.
Residential
The company’s Five Star residential service offerings consist of the operation of primarily larger independent and assisted living senior living communities, including memory care, as well as active adult communities. Its offerings can be classified into different primary service categories; while some communities provide a single service, many provide multiple service levels in a single building or in a campus setting.
Independent Living Communities: Independent living communities provide residents with high levels of privacy in various types of apartments and are similar to a multi-unit environment and require residents to be relatively independent. As of December 31, 2021, Five Star's operations included 10,423 independent living units in 86 senior living communities. Included in this total is an active adult community, which the company classifies as an independent living community, that has 167 living units.
Assisted Living Communities: Assisted living communities includes one-bedroom units, which comprise private bathrooms and efficiency kitchens. Services bundled within one charge usually include three meals per day in a central dining room, daily housekeeping, laundry, medical reminders and 24-hour availability of assistance with the activities of daily living, such as bathing, dressing and eating. Professional nursing and healthcare services are available at the community, as requested, or at regularly scheduled times. In addition, residents have access to a variety of entertainment and wellness activities. The company also provide Alzheimer’s or memory care services at certain of its assisted living communities through the company’s Bridge to Rediscovery program. As of December 31, 2021, Five Star's operations included 9,636 assisted living suites in 118 senior living communities, of which 1,872 units in 65 senior living communities are dedicated to memory care services.
In addition to Five Star senior living communities, the company provides a suite of lifestyle services at its senior living communities, as well as at third-party operated communities through the company’s lifestyle services segment.
Lifestyle Services
The company’s lifestyle services consist of delivery of rehabilitation services, primarily provided in outpatient rehabilitation clinics, and fitness services. Its rehabilitation services include physical therapy, speech therapy and occupational therapy, as well as strength training, orthopedic rehabilitation, fall prevention, cognitive or memory enhancement, aquatic therapy, continence management programs, pain management programs, neurological rehabilitation and post-surgical or post-hospitalization services. The company’s fitness services include general personal fitness and wellness programs. Both rehabilitation and fitness services are delivered by licensed therapists or other trained personnel. As of December 31, 2021, the company’s operations included ten inpatient rehabilitation clinics and 205 outpatient rehabilitation clinics providing rehabilitation services. In addition, it provides fitness and personal training services in 199 senior living communities. The company also offers other lifestyle services in certain of its communities, including home health and home care.
Growth Strategy
The company seeks to grow its business by entering into additional long-term management agreements for senior living communities and active adult communities where residents’ private resources account for all or a large majority of revenues. The company also continued to expand its rehabilitation and wellness services to senior living communities outside of its Five Star senior living communities. The company continues to seek ways to grow its other lifestyle services that complement its existing senior living resident experience and are available to older adults living outside of Five Star communities.
Seasonality
Revenues derived from the company’s senior living and managed communities are subject to modest effects of seasonality, which it experiences in certain regions more than others, due to weather patterns, geography and higher incidence and severity of flu and other illnesses during winter months.
Trademarks
The company’s trademarks, such as Five Star Senior Living, Bridge to Rediscovery, Ageility Physical Therapy Solutions and Ageility, which are its property and are protected under applicable intellectual property laws. The company’s trademark application for ‘AlerisLife’ is pending.
Government Regulation
Under the federal Health Insurance Portability and Accountability Act of 1996, or HIPAA, and the Health Information Technology for Economic and Clinical Health Act, or the HITECH Act, the company must comply with rules adopted by the U.S. Department of Health and Human Services (HHS), governing the privacy, security, use and disclosure of individually identifiable information, including financial information and protected health information, or PHI, and also with security rules for electronic PHI.
The company must also comply with the Americans with Disabilities Act, or the ADA, and similar state and local laws to the extent that such communities are public accommodations as defined in those laws. In instances in which the state provisions are more stringent than or differ from HIPAA, the company’s communities must comply with both the applicable federal and state standards.
History
The company was founded in 2001. It was incorporated in 2001 under the laws of the state of Maryland. The company changed its name from Five Star Quality Care, Inc. to Five Star Senior Living Inc. in 2017 and then to AlerisLife Inc. in January 2022.
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