CELEBRATING
35 Years of Service

Services

ACTUARIAL STUDIES

The comprehensive actuarial study is the cornerstone of an actuarial analysis of a CCRC. This study determines whether or not: (a) the cash and reserves held by a CCRC are sufficient to cover its future contractual obligations to current residents; (b) the combination of monthly and entry fees charged to new entrants covers their expected […]


ACTUARIAL OPINIONS

CCRC regulations in several states require periodic submission of a comprehensive actuarial study with an opinion prepared in accordance with ASOP No. 3 or a set of financial forecasts based on actuarial projections of population flows with certification regarding the reasonableness of the underlying assumptions. We have prepared actuarial reports using a customized template for […]


FSO CALCULATION

To prepare a CCRC’s financial statements in accordance with generally accepted accounting principles (GAAP), auditors rely on the future service obligation report. The CCRC’s obligation to provide future services is derived using a method prescribed by accounting guidelines from Chapter 14 of the AICPA Audit and Accounting Guide for Health Care Organizations and reflects the […]


POPULATION FLOW PROJECTIONS

Critical to any CCRC’s financial projections are assumptions about independent living turnover (attrition), apartment density ratio (number of second persons in units over time), and usage of healthcare services by continuing care contract holders. These assumptions have dependent relationships that must be consistent if the resulting projections are to be credible and reliable. As the […]


CCAH PRICING

Similar to our efforts with CCRCs, A.V. POWELL & ASSOCIATES were the first consultants to apply actuarial techniques for pricing continuing care at home programs in 1985 as part of the concept development (also known as lifecare or continuing care without walls). Although derived from the managed care practices that were employed by CCRCs, we […]


CONTRACT REDESIGN

In the current market, pricing in the senior housing industry is very competitive. We are often called upon to submit a unique proposal to apply our actuarial expertise or conduct surveys with our extensive national client base to make recommendations for internal financial policies. By applying actuarial techniques to determine fee adjustments for various contract […]