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| Riddle Village: Lifetime Guarantee |
| Rehabilitation | |||
| Written by Amanda Gaines | |||
| Saturday, 01 November 2008 | |||
 This life care retirement community eases the burden of its residents by providing financial and medical security.
 So what is Riddle Village doing to comfort its potential and current villagers? As a Type A Life care Community, it’s guaranteeing that once they enter its community, its residents will have health and home for the entirety of their stay. Here’s how it works. Rather than offering a fee for service contract, where residents pay different rates depending on where in the care continuum they are, 70% of the entrance fee paid by Riddle Village residents is used as tax-deductible prepaid medical funds. From that point on, 45% of residents’ monthly fees are also tax-deductible prepaid medical funds. And if a resident moves into the community’s healthcare unit, his or her monthly fee stays the same, regardless of the level of care. “Even if they’re holding onto their apartment, they’re basically paying that same fee without having to pay for both,” said Bob Bertolette, president and CEO. “It’s ideal for a couple. If a spouse goes into the healthcare facility, even on a permanent basis, the couple still pays one monthly fee but takes up two spaces, unlike a fee for service where they pay for both.” Bertolette looks at this business platform as a relief to residents and to the government as it reduces the reliance on Medicaid or any other third party reimbursement. In fact, Riddle Village currently has no Medicaid-dependent residents in its community. And for residents fearful of depleting their assets, the organization has a $900,000 endowment fund that it invests and uses to provide grants to residents whose funds have run out. But even without that endowment, Bertolette said Riddle Village would still find a way to care for its residents. “While some facilities offer various contracts to respond to a slowdown in the industry, we provide life care to help protect the assets of our residents,” he said. “We believe that regardless of the economy, it’s still the best way to protect your assets while getting full protection of healthcare services. We ask the question: who do you want to take on the risk: us or you?” Peace of mind Riddle Village comprises 365 independent living apartments, 49 assisted living beds, and 86 skilled nursing beds. The community is located on ground leased from Riddle Health Care Foundation and was initially developed both as a complement to the hospital and as a way to meet the needs of seniors in the area. In addition to providing residents peace of mind in knowing their finances and medical futures are taken care of, Riddle Village takes pride in providing its residents the kind of culture seniors of today and tomorrow want and need. The community offers some of the largest apartments in the area, with three-bedroom apartments reaching up to 2,500 square feet, and each offers underground parking. The organization recently invested $11 million into its community, part of which went to expanding its medical facility bed count. But perhaps the biggest change resultant from the expansion was the addition of a bar and lounge area. The full-service bar is staffed by licensed bartenders and, according to Bertolette, resembles a lounge from a country club with an outside veranda. “It’s a new social venue for our residents, and the families love it,” he said. Riddle Village also created a 30-foot by 60-foot fitness area and added a full-time fitness trainer to its staff. As residents continue to live longer, and the baby boomer generation continues to trickle into the mix, Bertolette said it’s important for retirement communities to offer wellness amenities if they want to remain competitive in the industry. Both the lounge and fitness center, along with the addition of private skilled care rooms, repositions Riddle Village’s product to keep up with competition and to attract a younger population. “As our industry matures and competition grows, we can no longer ‘cookie cut’ when building new communities,” said Bertolette. “We need to prepare for the next generation of consumers and anticipate their expectations for retirement living.” Culture of simplicity Bertolette said he believes the industry is out-pricing itself, which has sparked the creating of mega-retirement communities offering a fee-for-service contract. In an effort to control costs and keep its fees at a reasonable level, Riddle Village invests in more than amenities to ensure it can continue providing for its residents. It recently invested $1 million to replace its electrical lines, which had previously been connected to Riddle Hospital, and created $150,000 worth of annual savings. It’s also investigating replacing its phone system, which will save the village close to $50,000 a year. Unlike a number of other retirement communities that have decreased their number of skilled nursing beds, Riddle Village increased to expand its services to the outside community, capturing private pay and Medicare revenue. The expanded units were designed to transition to assisted living in the event industry regulations change in the future. “We believe keeping our costs down gives us a competitive advantage,” said Bertolette. “Our costs are on the average $1,000 cheaper per month, but our amenities are equal if not better than most facilities. We want that reputation.” Riddle Village also does its part to help residents understand what to expect in terms of rate increases. From the board level down, the organization has a commitment to keep rate increases at between 4.5% or 5%, regardless of what others in the industry do. Bertolette said this plan allows Riddle Village to meet its strategic initiative to strengthen its financial position while maintaining its competitive edge in the market. “Recently, when our rate increase of 4.9% was announced to the residents, we received praise because they were expecting higher due to the bad economy,” he said. “It shows how much of an impact these increases have on our residents and their wallets. Our industry needs to be more sensitive to this.” Residents and community members have recognized Riddle Village’s efforts. For the past four years, the Daily Times’ Best of DelCo Reader’s Choice Awards rated the organization as the best retirement community in Delaware County. In addition, each year, residents collect up to $130,000 for their holiday fund, which is split with the employees. And as a result of the healthy environment initiative in August 2007, Riddle Village became the first retirement community in Pennsylvania to voluntarily become a completely smoke-free campus for both residents and staff. Said Bertolette, “It’s a trend in our society, and we wanted to be proactive. “Our culture is simple,” he continued. “We smile, say hello, and everything else follows. It makes our community friendly and our staff customer-centered.” |
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