What Makes a Life Plan Community Financially Stable?
Choosing a Continuing Care Retirement Community (CCRC) or a Life Plan Community is one of the most important financial and lifestyle decisions you’ll make. Beyond amenities and location, financial stability is a critical factor that ensures long-term security, quality care, and peace of mind.
We break down what makes a retirement community financially strong, what questions to ask, and how Mt. San Antonio Gardens demonstrates long-term stability.
Here are seven factors to consider when you are looking at a community’s financial stability:
1. Occupancy Rates
Strong occupancy reflects demand and financial health. At the Gardens, occupancy is high across campus, indicating a stable and desirable community.
2. Rate Increases Over Time
Look at both current and historical trends. The Gardens rate increases vary, with adjustments based on broader economic conditions.
3. Debt Rating
The Gardens holds a BBB- rating with a stable outlook, showing long-term viability and accountability.
4. Profitability vs. Cash Flow
The Gardens maintains positive cash flow, supporting operations and reinvestment.
5. Capital Improvements
Recent capital investments at the Gardens include:
• The Wellness Center
• The Cedars building in independent living
• Solar energy initiatives for long-term sustainability
6. Financial Reserves
The Gardens maintains approximately:
• 490 days cash on hand
• A strong debt service coverage ratio
7. Resident Involvement
At the Gardens:
• Residents serve on the Board of Directors
• Over 70 resident-led committees help shape daily life
Additionally, several key factors contribute to the Gardens’ long-term financial strength:
• Life care contract model for predictable revenue
• 65+ years of operational history
• Strong occupancy and demand
• Continuous reinvestment into the campus
• Diversified revenue through healthcare services
• Commitment to maintaining on-site skilled nursing care
These elements work together to provide residents with confidence and security for the future.
Financial stability is more than numbers. It reflects an organization’s commitment to its residents, its future, and its mission.
At the Gardens, that commitment is built on decades of planning, transparency, and community engagement, helping residents feel confident not just about where they live today, but where they will be cared for in the future.
If you have questions or would like a personalized estimate, we are here to help.
Jay Labinger is a Gardens resident, he was born and raised in Los Angeles, CA. Jay received his Bachelor of Science in Chemistry from Harvey Mudd College. He attended Harvard University where he earned a Ph.D. He was an Assistant Professor of Chemistry at the University of Notre Dame. His career has included positions with Occidental Research Corporation & Atlantic Richfield. He is the Administrator of Beckman Institute at the California Institute of Technology as well as a Faculty Associate in the Chemistry Department. He enjoys reading, playing the piano, tennis and traveling. He has published books on the history of chemistry, sociology of science and literature & science. Here at the Gardens, Jay is part of the Conservation & Sustainability Committee the Green Fund as well as many other groups through the Gardens Club.
Jane Hurd is a Gardens resident, she was born & raised in a small town in Arkansas. After she received her BA from the University of Arkansas she moved to California and taught seventh grade English in Porterville CA. After two years she moved to Los Angeles and worked for the Department of Health Services and pursued a master’s degree in public administration from USC. She served as CEO for two Los Angeles area hospitals. She continues to consult as an executive coach for CEOs of healthcare companies. She has served on several boards including Mutual of America Insurance Company, YMCA of Metropolitan LA, LA Visiting Nurses Association and Inland Empire Girl Scouts. Jane is an award-winning author and plays several musical instruments. Here at the Gardens, Jane is part of the newly formed Bequest Committee, as well as many other groups through the Gardens Club.
