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Baja California holds competitive advantage for senior assisted living.

By Patrick Osio, Jr./HispanicVista.com

  July 15, 2007

 

Baja California holds competitive advantage for senior assisted living.

By Patrick Osio, Jr.

 

Baja California’s North Coast real estate developers are not satisfied with the price advantage of beach front and ocean view homes enjoyed over the entire coastal communities in California, Oregon and Washington that attracts so many second-home and retirement home seekers. Now they’re aiming at going after the Senior Assisted Living business.

 

Assisted living facilities provide assistance with ADLs (Activities of Daily Living) for people needing some help but able to and desirous of living independently for as long as they can. Residents of such facilities cannot live by themselves but do not require constant assistant either so ADLs cover the gap between those who can live independently and nursing homes where people have lost the ability to live without constant and complete help.

 

ADL facilities provide an apartment that can range in size from 400 to 1000 square feet with dinning hall providing 3 meals a day plus plentiful snacks, wide assortment of activities, community, billiard and card rooms, spa, grooming and laundry services, and shuttle service. In addition, ADLs can provide personal help such as housekeeping, dressing, laundry, assistance with medication and even a center for medical care. Though of importance is that ADLs are not alternatives to nursing homes and as such may not offer as intensive care as nursing homes do.

 

The cost of living in an ADL has a fixed rental, which includes a standard package of services, and add on costs depending on additional individual needs, but the bottom line is a lower cost than a nursing home. However, the prices largely depend on the type of accommodations, and luxury of the development – there is an ADL for almost any budget.

 

In this endeavor, Baja California’s north coast will again enjoy a significant competitive advantage over similar ADLs in California, and over many other places in Mexico due to proximity to San Diego. As a matter of culture, the Mexican people put great emphasis on respect and caring for the elderly, which is a great advantage. The secondary reason adding to the competitive advantage is that ADLs are heavy on service, which translates to higher labor usage and that price differential is significant, plus there is an acute shortage of such workers in the US.

 

Real estate developments can incorporate three phases of retirement living called ‘continuing care retirement communities.’ The first is independent living, which may entail the purchase of a condominium wherein the resident is not in need of help.

 

As time and condition mandates the need for help, the resident can move to assisted living and eventually move into nursing home care. The project can be in one all inclusive building, or separate buildings in the same senior-community. As the moves are made, the original condo can be sold or rented to help offset the cost of rent and needed services.

 

However, for the time being what is under consideration in Baja by a number of real estate developers is the ADLs as there will be a need to create the trained human resources for services above those required at an assisted living facilities.

 

For Baja real estate developers assisted living facilities is a natural progression on what they already offer. The facilities are more in line with a full service hotel providing excellent service to its occupants. Mexico excels in these services.

 

The added services dealing with “personal services” will require additional training, but here again the training is not intense. The last part of the services which will require more intense education and training are for the medical services to be offered. However, Mexico has excellent nursing schools, as well as pharmacists and doctors capable of providing the basic needs of the occupants and arrange for transfers to medical facilities in cases where patients need more specialized or intense care.

 

The added service that can easily be offered is Medical Evacuation insurance to facilitate the speedy transfer of patients back to the US in the event of a serious need for intensive and specialized medical attention. Thus, Baja enjoys a competitive advantage due to the proximity to high end medical facilities located in San Diego and quick access to them.

 

It’s not only Mexican real estate development investors who are investigating the Baja opportunities in this fast growing field. There is a number of the US and Spanish ADL chain management enterprises taking a hard look at the Baja potential.

 

The Baja California public and private sector are awakening to the potential. Recently a conference was organized by the Tijuana Economic Development Corporation promoting “Medical Tourism” as a growing sector that is fast becoming a major source of visitors seeking lower cost medicines, dental work, eye care and the “vanity” surgeries. The assisted living opportunities were a part of the discussion as a great potential for growth that is just now beginning to be recognized.

 

So get ready for a new round of bustling activity along the Baja North Coast

 

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 Patrick Osio, Jr is the editor of HispanicVista.com (http://www.hispanicvista.com).  Contact at: PosioJr@hispanicvista.com

(The opinions expressed by Patrick Osio, Jr. are solely his and do not necessarily reflect those of HispanicVista.com, editorial board of advisors or it’s contributing writers.)

Patrick Osio, Jr. has written a short but intensive manual on the Mexican perspective on numerous issues between our two countries. The manual is an in depth primer on the culture and protocol for better understanding Mexicans that in turn allows establishing personal and business relationships, and how to avoid the most common faux pas that can ruin relationships and business deals.

The manual is available through Electronic delivery for $9.95 making it possible to download the manual for save on your hard drive, printing its entirety or particular sections while reaping considerable savings over printed copies.