The financial model of a life plan community consists of paying a one-time, upfront entry fee, plus an ongoing monthly service fee. Typically, a community will offer entry fee options with varying levels of refundability, and some communities offer rental options with no upfront entry fee, but a higher monthly service fee. Here’s how it works:
At a nonprofit retirement community like Bishop Spencer Place, the entry fee is invested back into the community for items such as community improvements, enhancements, and technological advances. Portions of the entry fee are invested to finance future entry fee refunds, as well.
Monthly Service Fee
The monthly service fee is used to fund the resident’s living expenses in the apartment home. At Bishop Spencer Place, this includes:
- All utilities (except telephone), including cable TV and Google Fiber internet
- Weekly housekeeping and scheduled bed linen laundry service
- Interior and exterior maintenance
- Campus-wide emergency call system with 24-hour staff response
- Flexible dining program
- Transportation (trips to/from Saint Luke’s Hospital and KU Medical Center, plus scheduled outings)
- Concierge and valet services
- And more!