The Goldman Mature Market Report recently spent five minutes with Lynne Katzmann, president and CEO of Juniper Communities in Bloomfield , N.J. , and asked the following question:

Q: Why aren’t more senior living companies incorporating adult day-care as one of their services since it would introduce more families to their communities and offer a better chance of residency in the future?

A: According to Ms. Katzmann, from the standpoint of senior-living communities, adult daycare is not a highly profitable service, particularly because of rising transportation costs – not just fuel, but the van, the driver and other incidental expenses such as the time required to help people in and out. Medicaid helps some, but because Medicaid programs are state-funded, reimbursement levels differ.

Ms. Katzmann adds,

“For adult daycare to work, you need large attendance to make the number work when it comes to meals and activities. Why more people don’t ask about it, I don’t really know. It’s a positive experience, allows people to socialize, which, in the case of those elders who suffer from depression, can improve their nutrition.”