Independent Living Penetration Rates: One Indicator of Market Demand

Independent living penetration rates are an important indicator of market demand for new developments and expansion projects. However, with varying methods of calculating demand, different terminology, and certain subjective assumptions, how can stakeholders interpret the results or understand what an acceptable penetration rate looks like?

Introduction

The analysis of penetration rates in this document represents the approach, methodologies and interpretations of DHG Healthcare, the national healthcare practice of Dixon Hughes Goodman LLP. Over the past 10 years, DHG Healthcare has been collecting and summarizing information for our independent living benchmark database. Our original white paper released in October 2007 introduced our database and the concepts and methodology surrounding our independent living penetration rate analysis. While our method for calculating independent living penetration rates has not changed, this white paper introduces our new benchmarks which provide an enhanced look at penetration rates based on three different income qualifications: $35,000 and higher, $50,000 and higher and $75,000 and higher.