Presentation sparks discussion on assisted living facility

SEELEY LAKE – At the Seeley-Swan Hospital District monthly meeting April 20, BeeHive Homes owner Ty Harding shared information and challenges regarding building an assisted living facility in Seeley Lake. The board looks forward to continuing these discussions at future meetings.

BeeHive Homes offers assisted living and memory care. Based out of Missoula, they focus on smaller facilities designed to resemble residential homes and take a very personal approach to assisted living care services.

Harding expects the need for assisted living and memory care facilities to continue to grow until 2030. The market for BeeHive Homes is the small, affordable residential style assisted living. He feels this market will see the largest growth in the next decade growing from eight million in the middle market to 14-16 million needing these services by 2030.

“More people are going to what to reach out to more affordable, smaller, more personal settings and that is what the data is showing us right now,” Harding said.

Harding said right now the national average for assisted living is around $4,500 per month for assisted living, not memory care. When Harding started in 1995, rent was $1,300 per month. In Missoula, the average is $4,000 per month.

“It is not easy, that is almost $50,000 per year on the average for somebody to stay at one of these places,” Harding said.

The average stay is two and a half years but there are some that have been at BeeHive Homes for 20 years.

BeeHive Homes looks for areas with at least 5,000 people to support a setting. Currently the population in Seeley Lake is around 1,300. Harding said past discussions started out with a small setting that could be integrated and added onto as the need increased.

“Because it is a smaller setting, it may have to be a setting where we have to get creative because with those small, small settings it is hard to make the numbers work with the staffing model,” Harding said. “You have to have that staff 24/7.”

Back in the 1990s, Harding said BeeHive Homes used the live-in staffing model. Staff would live at the facility and be available from 4 p.m. until morning. They received a break in rent for their work but due to labor laws, they still need to be compensated in some way for their time.

Harding said an eight-bed home can typically be run by one person during the day with some supportive services for activities.

Trustee Terryl Bartlett suggested supporting the Meals on Wheels and Senior Center meals instead of building an entire kitchen and starting with a five-bedroom facility with room to expand.

“Just see how we can cut corners without cutting quality,” Bartlett said. “Can we consider that?”

Harding said BeeHive Homes has never done a five-room facility and food being brought in is an interesting idea. He felt a lower cost solution would be to purchase and make the food on site.

“The food and the supplies are about 8-10% of the total cost expense-wise,” Harding said. “The big expense is the labor. The labor model is what we really need to be cognizant of in how it relates to the rents that you are bringing in.”

Harding said the staffing costs depends on the model. The pandemic has caused a serious staffing crisis and created some complications and disruption across the industry. Right now the labor costs have increased to $15-$16/hour. After the matching taxes and benefits it is $20 per man-hours.

Harding said a 10-bed model requires 30-man hour per day. That is $600 per day for a full setting is $219,000 annually for staffing costs. If eight people were paying $50,000 per year is $400,000.

“Regardless of how many residents you have, there are at least 24 man hours that are required to operate that one setting whether it is two or 10,” Harding said. “In order to make the bottom line work, those staffing costs should not exceed 40%. The only way to address that is increase rent.”

Harding said that people that are on Medicaid or other assistance cannot afford traditional senior housing so they have to go through a Medicaid waiver. Those that are Medicare waiver eligible, the total payment to the provider is $3,600.

“It would be a negative situation for that because it is so much less than private pay,” Harding said.

District Clerk Marty Kux asked what the situation would look like if it was the Seeley-Swan Medical Center Foundation that invested in it and wasn’t looking for a profit. Harding said he does not have any experience with non-profit models. However, running it as a non-profit model may give them tax breaks and allow them to apply for grants that would change the dynamics of how the home operated.

Trustee Suzanne Philippus-Palm said that there may be more rules and regulations that come with the tax breaks especially if the facility operated as a non-profit.

Harding said it is possible, but he feels the licensing for the assisted living will be the same regardless if it is a for-profit or not-for-profit model.

In response to the board question regarding assistance for memory care residents, Harding said when someone has Alzheimer’s or dementia, they don’t necessary need to leave.

“If their behavior starts to be disruptive or if they are exit seeking then we have to make accommodations for that in a different setting that is more secure,” Harding said. “If they are just comfortably confused, there is no reason for them to be transferred and they can age in place there.”

Bartlett suggested that the discussions continue with the board to see if they want to further pursue building a facility.

Harding offered to explore the non-profit model and report back to the board.

“That is an interesting concept when you have a community that is rooting for it and they are willing to make some accommodations to make it happen,” Harding said. “The reality is if it doesn’t financially cash flow, then it is really difficult to make this work long term. It would have to be someone that is passionate, somebody that has good vision and somebody that is willing to take the risk on Seeley Lake Montana.”

The board agreed to continue these discussions at future meetings.

The next meeting is scheduled at 5 p.m. May 10 via conference call.