April 14, 2025
Residents Deserve Transparency Around Entrance Fees
Residents think they’re paying for lifetime care—but the truth isn’t so clear.
In this Senior Living Minute, Jack Cumming shares why senior living communities must provide greater transparency around entrance fees. Many residents believe they’re paying for care—but in some communities, those funds are used to secure debt instead of being reserved for future services.
Learn why clarity around financial commitments is essential for building trust with today’s senior living consumers.
Guest: Jack Cumming | Join the Discussion on LinkedIn! 💬
Transcript: Residents Deserve Transparency Around Entrance Fees
One of the first things you hear from marketing teams at many not-for-profit or family-owned communities is about the entry fee.
Typically, it’s tied to the sale of your home—you sell your house and use the proceeds to pay that fee. My assumption was that the entry fee paid for lifetime services, that it was actuarially reserved to cover care.
But I found out that many communities use those fees as equity to secure debt, enabling the organization to take ownership.
In effect, residents aren’t paying for a lifetime contract—they’re making an equity investment so that someone else owns the community.
And I thought, gee, that feels a little fuzzy. I wonder how many residents really understand that’s how it works.