Background:

A private equity firm had recently acquired 40 independent living facilities, each operating with different branding, referral systems, and operational processes. Without a unified approach, occupancy rates remained below optimal levels, and high-value referral opportunities were being lost.

Challenge:

• Inconsistent Referral Strategies: Each location had different methods for attracting new residents, leading to inefficiencies.
• Occupancy Gaps: With an average 70% occupancy rate per location, there was an opportunity to fill 50 additional beds per facility.
  
• Lack of Standardized Technology & Training: Operators lacked the tools and processes to systematically grow and manage referral partnerships.

Result:

• $1.8M in additional annual revenue per location, driven by filling 50 additional beds.
• $72M total annual revenue opportunity across all 40 locations.
  Higher Resident Lifetime Value (LTV): Median LTV of $54K per resident, with potential up to $108K.
• Operational Consistency: Standardized referral management, increasing efficiency and scalability.

By creating a structured referral system and equipping operators with the right tools, this PE firm transformed its fragmented senior living portfolio into a high-growth, referral-driven business.

Process:

To create a scalable and repeatable system for filling occupancy gaps through referral partnerships, we came up with this implementation process :

01

Targeted Referral System Pilot – Rolling out in the top 10 locations first, focusing on high-value referral sources to increase occupancy toward the 95% target.

02

Comprehensive Training & Playbook – Equipping operators with a standardized framework to identify, engage, and maintain referral partnerships.

03

Unified Technology Stack – Implementing tracking and automation tools to ensure seamless partner management, referral tracking, and conversion optimization.

04

Scalable Expansion Plan – Once the first 10 locations demonstrate success (expected in 4-6 months), the system was expanded across all 40 locations.