Top Picks

If you haven't realized it yet (and if you're a regular reader of this magazine, there's no way you could have missed it), the growing number of seniors in America is creating a need for health-care businesses the likes of which we've never seen before. Assisted living facilities mark another segment of this trend, spurred by the demand for environments that promote wellness and quality of life.

More and more seniors are turning to assisted living facilities, which provide support in daily activities and health care but allow the elderly to age with dignity. In contrast to nursing homes and other types of institutional care, assisted living residences resemble a homelike environment, much like apartment living. Residents get to live in the comfort of their own "homes" while receiving help with everything from taking medication, eating and dressing to bathing and getting around town. This model of care focuses on residents' well-being and independence, says Karen Wayne, president and CEO of the Assisted Living Federation of America (ALFA).

Rem Inc., a residential services company in Edina, Minnesota, has been building and managing multiresident buildings since 1967. Five years ago, it moved into the assisted living arena when it noticed a sharp rise in demand for the services. With 40 Minnesota locations, Rem plans to construct at least two more assisted living properties in the near future. "People want to remain in a home setting and still be cared for," says president Thomas Miller, who runs Rem with his brothers Craig and Douglas.

Competition is keen, so take heed: Operating a facility is capital-intensive. Entrepreneurs must research location, demographics and regulations. Despite the challenges, the outlook is good: ALFA estimates that this year's industry sales of about $13.5 billion will double by 2000.

This article was originally published in the December 1997 print edition of Entrepreneur with the headline: Top Picks.