Erickson Living is a developer and operator of full-service, campus-style senior retirement living communities. Today, Erickson operates 18 communities in 10 states, including Fox Run in Novi, Michigan, which serves over 1,000 residents, making it a very large location for the company.

The Challenge
Retirement communities, such as Erickson Living’s Fox Run, offer many healthcare services catering to residents’ varying levels of need. This facility serves over 1,000 residents, making it a significant Continuing Care Retirement Communities (CCRC) facility for both the company and the state.

The state launched a bed tax effort and CCRCs were on the list to be included. Because these facilities do not operate like hospitals, the financial impact for the CCRCs would have been devastating. Erickson initiated conversations in Lansing seeking to exclude CCRCs from the new tax but weren’t able to connect with the right people to make progress. It was then that Erickson sought out expert assistance to expedite the process. When evaluating partners, MLC’s deep-seated relationships and extensive understanding of the Capitol environment significantly contributed to Erickson’s decision to work with MLC.

The Solution
During the building of its strategic plan for Erickson, MLC identified key areas of focus that would be crucial for the success of this program. First and foremost, a detailed comparison of CCRCs and other health care institutions helped raise awareness of the need for separation of taxing. Second, having MLC professionals with strong connections on the ground to represent Erickson, including 12-year Michigan legislative veteran Brendan Ringlever, was a big asset for the client. MLC’s advocacy efforts to educate strategically selected House and Senate Appropriations Committee members, key legislators, and state departments, such as the Department of Insurance and Financial Services, significantly impacted the outcome of this case.

The Results
The reclassification of CCRCs convinced legislators to omit Erickson’s Fox Run community from being included in the Medicaid bed tax—resulting in roughly $1 million in savings annually. Not only Erickson, but the entire CCRC industry, continues to save millions of dollars in Michigan as a result of MLC’s work on this case. Erickson was able to take the model created in Michigan and present it to other states where it does business.

For more information on how MLC can help shape Michigan legislation to benefit your organization and industry, reach out here.

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