Senior Living News Wire

The U.S. Court of Appeals for the Sixth Circuit issued a ruling affirming a 2009 jury verdict, where HCP (NYSE:HCP) must award approximately $102 million in damages to Ventas, Inc (NYSE: VTR).

According to Ventas, the lawsuit was filed due to tortious interference with business expectation arising out of its acquisition of Sunrise Senior Living REIT in April 2007.  The court also reversed a previous decision to block Ventas from seeking punitive damages against HCP for its conduct.

“In light of the evidence presented at trial, we believe it was error for the district court to prevent the jury from considering an award of punitive damages,” said court documents. “Accordingly, we reverse the decision of the district court as to punitive damages, and remand with instructions that the matter proceed to trial on the single issue of punitive damages.”

Ventas originally sought approximately $300 million in compensatory damages as well as punitive damages.

Ventas is a leading healthcare real estate investment trust with diverse portfolio of more than 700 assets in 44 states and two Canadian provinces consists of seniors housing communities, skilled nursing facilities, hospitals, medical office buildings and other properties.

HCP said it’s reviewing the Sixth Circuit’s opinion to determine its options with respect to the ruling.

The Wichita Eagle is reporting that baby boomers are reshaping retirement communities and developers will need to adapt in the coming years to meet their needs.

Some experts think the future of retirement living depends on social connection — specifically, what their residents have in common.

“For the past 25 years, we’ve mainly built retirement communities on the golf course or on the top of a mountain somewhere,” said Andrew Carle, director of George Mason University’s assisted living and senior housing administration program.  ”That won’t be enough for baby boomers. We invented 12 flavors of Coca Cola. We expect more flavors. There are 78 million of us demanding that. We’ll congregate, but we want our own groups.”

According to the report, almost 60 percent of second-half baby boomers say they plan to buy a new home when they retire. But downsizing doesn’t have to mean moving to a continuing-care retirement community that includes several decades’ levels of care, from independent living and skilled nursing to Alzheimer’s assistance.

After all, only 16 percent of today’s retirees have moved to seniors-only developments.

“What we hear from boomer focus groups is that people don’t want to move away from the life of the broader community,” said Sheri Peifer, vice president for research at Eskaton, a major Northern California senior-living nonprofit. “They want to live near their neighbors. They want to go to the church they’ve attended for years.”

Boomers reshaping retirement communities

Eppstein Uhen Architects (EUA) has broken ground on the Crestwood, a new $18 million independent living community in Tulsa, OK.

The facility spans 204,000 square feet, with a 4-story independent living community located in the center of the Oklahoma Methodist Manor.  The community has 103 residences which range from a 670 square foot one bedroom to a 1,500 square-foot two-bedroom with sunroom.

The amenities include under-building secured parking along with a main entry/porte cochere. Additional features include a library/business center, full service restaurant, café, hobby zones, a theater/Academy Classroom, member’s club and a game room.

Centrally located within the campus, the center offers an equipment room, fitness classroom, locker rooms, aquatic center, beauty salon, exam rooms and a massage therapy room.

EUA said it expects the community to be completed in February 2012.

With an estimated 78 million baby boomers starting to turn 65, the group threatens to cripple the country’s financial and health care systems and significantly burden future generations according to a report from Volunteers of America.

Using data gathered by Lake Research and American Viewpoint, survey results show that 40% of respondents are worried about saving enough for their own retirement, but they are not clear on the true costs of long term care and there is a lack of excess income to put toward future goals.

The fact that Americans significantly underestimate the amount of savings needed to finance their future long term care needs, and that caregivers are sacrificing their own financial futures raises many concerns.  The report identifies four primary challenges faced by aging women and their caretakers: finances, desire for independence, workplace flexibility and lack of preparation.

“We need to address this looming potential catastrophe,” said Volunteers of America National President Mike King. “This will be the largest senior population in U.S. history and will almost double the prior numbers of seniors.”

King continued, “As our report states, preparation must occur on more than just the personal level.  Local, state and federal governments must begin to make changes now to help current caregivers and future retirees so that the impending wave of 78 million baby boomers does not wipe out the finances of future generations.”

The survey found that respondents want to see a way for individuals to access Medicaid services without being forced to spend personal assets all the way down to poverty levels in order to qualify.  ”This could be done through an expansion of state public/private partnerships that shield a set amount of personal funds through the purchase of approved long-term care insurance policies,” said Volunteers of America.

The report also found that woman continue to serve as the primary hands-on caregiver for loved ones.  In addition, most women surveyed who are not currently caregivers expect they will be providing care at some time in the future.

Survey respondents also supported policies that would allow seniors to remain in their own homes for as long as possible and receive care in home- and community-based settings.

View a copy of the report.