Enhancing NOI and Resident Satisfaction with DRS Solutions

Introduction 

At DRS, we specialize in providing memory care solutions that capitalize on the asymmetric cost efficiencies and advanced care models available abroad. By leveraging the lower costs of labor, materials, real estate, and maintenance—even at luxury facilities—we offer a unique model that increases owner Net Operating Income (NOI) while enhancing resident satisfaction.

A Financial Example

Let’s explore real-world scenarios illustrating the financial benefits of transitioning residents from your memory care facility to an example luxury facility in Thailand:

Example 1: Escalating Care Costs

  • Current Situation: A resident in the U.S. is paying $7,000 per month for basic memory care. However, due to increasing care needs, the monthly cost to the family is projected to rise to $8,500. The family cannot afford this increase, leaving the facility with two choices: let the resident go or explore alternatives.

  • Proposed Solution: The facility presents the family with an option to relocate their loved one to a luxury price-stabilized memory care facility in Chiang Mai, Thailand. Here, the resident would receive enhanced care and the family would enjoy paying their current rate of $7,000 per month.

  • Facility Benefits:

    • Increased NOI Opportunity 1: For a $7,000 monthly fee, with a 25% margin, the facility currently makes $1,750 per month on this resident. The facility pays DRS $4,500 per month while retaining $2,500—increasing NOI from $1,750 to $2,500.

    • Increased NOI Opportunity 2: The vacated bed can now accommodate a new resident once again increasing the facility NOI.

Example 2: Challenging Resident Behavior

  • Current Situation: A resident’s behavior has become increasingly challenging. They may be increasing employee turnover, and negatively impacting other residents’ and families’ experience— acting violently, or requiring levels of care that are unmanageable within the facility’s existing structure. Retaining this resident is impacting staff morale, operational efficiency, and overall costs.

  • Proposed Solution: Instead of bearing the tangible and intangible increased expense or losing revenue, the facility offers the family the option to transition their loved one to a luxury care facility in Chiang Mai, Thailand “specializing in difficult cases.” (These facilities have advanced care models and experienced staff trained to handle such situations, boasting an incredible success rate.)

  • Facility Benefits:

    • Increased NOI Opportunity 1: As in the previous example, the U.S. facility retains $2,500 in NOI by paying DRS $4,500 for the resident’s care.

    • Increased NOI Opportunity 2: As in the previous example, the vacated bed can now accommodate a new resident once again increasing the facility NOI.

    • Increased NOI Opportunity 3: The facility reduces operational expenses caused by the challenging resident while preserving goodwill with the staff, residents and families.

These examples demonstrate how DRS helps facilities navigate complex challenges while improving financial performance and ensuring residents receive the care they need.

The DRS Approach (Thailand Solution)

  1. Leveraging Asymmetric Cost Advantages

    • Labor Costs:

      • Thailand’s highly trained and compassionate caregivers provide world-class care at a fraction of U.S. labor costs.

    • Materials and Supplies:

      • Access to high-quality medical and living supplies at significantly reduced costs.

    • Real Estate and Upkeep:

      • Cost per square foot is approximately on-tenth that of high rent metro regions in the US, allowing for both spacious and cost effective foot prints.

  2. Swiss-Run Facilities

    • Thailand is home to internationally managed memory care facilities, including those run by Swiss operators renowned for their innovative care models and high standards.

  3. Advanced Care Concepts

    • Care Innovations:

      • Residents can access the world’s most advanced dementia care concepts, blending state-of-the-art technology with personalized care to improve outcomes.

    • Nature-Integrated Design:

      • Facilities are often designed with gardens, open spaces, and natural light to enhance residents’ well-being and reduce stress.

  4. Enhanced Resident Experience

    • Tailored Care Plans:

      • Provide individualized care plans that align with each resident’s needs and preferences.

    • Luxury Amenities:

      • Offer resort-style living with daily activities, fresh and healthy meals, and wellness services such as daily massages.

    • Cultural Warmth:

      • Harness Thailand’s culture of respect and care for the elderly, creating an environment of dignity and compassion.

  5. Maximizing Financial Benefits

    • Predictable Pricing:

      • Benefit from contractually fixed, all-inclusive pricing structures that eliminate unexpected expenses.

    • Higher NOI:

      • Benefit from multiple ways to increase your facility NOI, potentially doubling per resident NOI transitioned to our care.

Why Partner with Us?

Choosing DRS is more than just outsourcing care; it’s about the peace of mind and efficiency you get from developing a long term profitable partnership. We add value in several key ways:

  • Liability Shield:

    • Transitioning residents abroad introduces complexities in medical, legal, and logistical matters. We ensure preparedness and compliance, and shield your organization from potential liability.

  • On-the-Ground Expertise:

    • DRS operates directly in Thailand, maintaining established relationships and quality standards with all facilities suited to US tastes. These partnerships allow us to guarantee quality care, ensure smooth transitions and resolve issues quickly.

  • Proven Systems:

    • From visa procurement to medical certifications to medical escorts, we manage every step of the process. You benefit from the years of experience our team brings to the table.

  • Streamlined Process:

    • We streamline the operational process, gradually transitioning all administrative tasks from your facility to DRS. This includes family relations, ongoing communications, and problem resolution.

Want to learn more? Email us.

Sean Conner
Founder and Managing Director
[email protected]