KIT: Emergence of Assisted Living Facilities

Strategic tools for the practising manager

An assisted living facility (ALF) provides care for seniors who need some help with the activities of daily living, yet wish to remain as independent as possible. It provides all day supervision and services with maximum levels of privacy, space and dignity.

Such a facilitydiffers from a nursing home in that it is for permanent residential occupation. Also, it provides social and other amenities besides primary healthcare.

Alf is a nascent concept in India and is expected to grow in future. In the US, there are approximately 33,000 assisted living facilities, with an average of 100 individuals per unit.

At present, the market for ALFs in India stands at around $829 million, and is expected to reach $2,533 million by 2017, growing at a CAGR of 25 per cent.

 

The reason for the rise in ALFs is a fast increase in Indian population over 65 years, which is likely to reach 200 million by 2027. Also, the emergence of nuclear families and increased proportion of women in the workforce has resulted in the elderly being left to take care of themselves.