Vintage Home & Residential Care is classified under the Homes for the Elderly Sector, with a focus on the San Diego area. Facilities within this sector vary in skill and specialization of elderly care, but all provide the same basic service: to provide a safe and healthy environment for elderly individuals to reside in. This may vary in the care of individuals to help meet their daily physical, medical, social and psychological needs.
Vintage’s direct competitors include establishments that are categorized as assisted living, independent living and micro community for seniors. They are residential facilities providing personal care services for elderly that need assistance with various daily activities. This includes:
- – Taking medication
- – Eating
- – Bathing
- – Moving without assistance
Residents or family members of the residents must schedule their own doctor and dental appointments. The facility may provide transportation to health care appointments but residents are free to come and go from the facility as they wish. Most assistant living homes provide social and outdoor activities to make day to day living easier and more enjoyable for those who need assistance.
Direct competitors of Vintage who offer these services are Erachel Board & Care, Sun life Manor, Bonita K Care, Bermuda Dunes Stellar Care, Bonita Valley Ranch, D&B Bonita View, and Richview.
Vintage’s indirect competitors include nursing homes, also known as Skilled Nursing Facilities, rest homes and Rehabilitation Centers. Such facilities are intended for seniors who require continuous medical care along with various daily activities. These needs surpass the assistance of daily medication intake and include:
- – Complex medications
- – Wound care
- – Ventilators
- – IV’s
- – Catheters
- – And more
Certified nursing staff checks patients’ vitals daily and keeps detailed records of the residents’ health. Most indirect competitors have larger volume of bed capacity and may be located on a hospital site.
Indirect competitors are located in and around Bonita such as Sunrise Living at Bonita, Grossmont Skilled Nursing Facility and St. Paul’s Health Care Center.
Vintage’s competitive advantage relies on the experience of care which Alice Smith has already established. Through her care for seniors she has created a detailed activity list in which many assisted living homes do not have. The residential home has a pool which allows for recreational use during warm weather, which benefits seniors who cannot endure difficult resistance training or workouts.
MARKET SHARE ANALYSIS
There are 68 assisted living centers in Bonita alone and 881 in all of San Diego County. Many of these facilities are privately owned and are run from a residential home.8 The primary limitation for these types of home facilities is the size of the home.
Vintage will only have six beds with the goal of opening a new facility in the future to fulfill demand. Though the market is competitive in Bonita, we believe that the market is large enough and that our superior facilities and level of service will allow us to meet our minimum occupancy goals.
BARRIERS TO ENTRY
There are various California state laws and regulations, depending on the type of facility that must be met in order to be a legitimate institution. In 2006, Governor Arnold Schwarzenegger of California raised standards of senior home facilities. This legislation raises home inspection standards, improves the rights of residents in uncertified nursing homes, and requires training of residential care facility employees who distribute medication to seniors.
This thorough home inspection can make it more difficult to establish a facility but ensures a level of safety and confidence for seniors and their families. The California Department of Health Services must inspect all nursing homes for violations of both Federal and California laws (Ch.895, SB 1312). This includes laws of minimum staffing requirements, nurse’s assistants requirements and details regarding nursing home abuse.9
Facilities must also contract liability insurance when handling and administering medication to others. Not having funds to adhere to regulations and insurance payments can make it difficult for business owners to enter the market and maintain competitive pricing.