Longevity Health Care
Longevity Healthcare Systems, Inc. Case 7-7 History Longevity Healthcare Systems, Inc. ... Richard Hamilton, who had a medical practice in Grand Rapids, Michigan specializing in care for older adults. ... Hamilton continued to learn how to care for older adults. In 1976, the Hamiltons leased a small, outdated 40-bed hospital and converted it into a long-term care facility. ... Over the years Longevity became a very successful business and began to expand. ... Although Longevity was successful, it was beginning to experience competition with other hospitals adding long-term care facilities and Alzheimers treatment centers. Problem At the time this case was written Longevity Care, Inc. ... However, Kathryn Hamilton, president of Longevity was concerned about the future of the company. Longevity’s primary operation is long term care facilities for older adults. The operation of these nursing homes has proved to be a very profitable venture for Longevity. The major problem Longevity is currently facing is increased competition. In 1994, a large hospital in Grand Rapids, Michigan, converted an entire wing of the hospital to a long-term care facility. This hospital then initiated an aggressive sales and advertising campaign to compete directly with Longevity for new nursing home residents. This could be a potentially dangerous for Longevity because people may feel more confident in the services of a large hospital rather than a small privately owned facility. ... An aging population has created a strong demand for long term care in nursing homes. ... Longevity does not offer a specialized treatment facility for Alzheimer’s disease and has lost some nursing home residents to these facilities. To broaden their treatment operations Longevity has expanded into sub acute care. Sub acute care owned by nursing homes serve the needs of patients who require nursing and medical care, but not as many of the specialized services and equipment provided by a hospital.