"Dividend-based pensions" failed, and central cities with rapidly growing populations are facing huge pension pressures——
Solving the Dilemma of Hunan Social Pension Institutions
In the past year or so, the "dividend type" retirement apartments hosted by many social organizations in Hunan Province have fallen into dilapidation.
Information from Hunan Provincial Local Financial Supervision Administration and Provincial Public Security Bureau to prevent and crack down on illegal fundraising in the elderly care sector shows that since 2018, Hunan Province has solved 45 such cases according to law, involving more than 3.5 billion yuan in funds, and cracking down on criminal suspects 66 people.
In recent years, the social elderly care market in Hunan has developed rapidly, and the province has more than 300 non-public enterprises involved in the elderly care sector.
However, the large investment in the pension industry, slow results, and long cycles have collided with the social capital's desire to make quick money, causing many social disturbances.
Recently, reporters from China Youth Daily and China Youth Daily investigated and visited a number of social elderly care institutions and professionals, explored the chaos and difficulties of the socialized elderly care industry, and solved how to deepen policy guarantees and market-oriented normative reforms to further satisfy the people. The increasing demand for socialized elderly care.
1. "Elderly care" has become "pit for the old": the predicament of the elderly in aging cities
In Xinglong Village, Tianxin District, Changsha City, just out of the "heart of love" retirement apartment where the "old care" has become "the old man", more than 100 elderly people have returned to their old stable lives. The old man no longer frowned.
"We are asking the government to coordinate the land rent reduction and opening of the park, so that we can achieve a balance of revenue and expenditure." A person familiar with the situation revealed in an interview.
The "Love Heart" nursing home was once a local star nursing home. It covers an area of about 50 acres. The windows of the building are bright and clean, and the interior decoration is quite atmospheric.
But the first batch of elderly people who moved in did not want to fall into a trap.
Investigations by the relevant departments in Changsha indicate that the sponsors of the "Heart of Love" have collected 500,000 yuan, 300,000 yuan, and 110,000 yuan from the elderly by selling membership cards that can be used to purchase beds at a discount, and promised Enjoy discounts on beds and pay interest at 12% per annum.
After the one-year contract expires, the principal and interest can be retrieved, or the interest can be converted into accommodation fees.
However, the high return on investment and the service charges below the market cannot sustain the operation of retirement apartments.
In Changsha, this is not alone.
On November 5, 2019, the Changsha Civil Affairs Bureau held a special meeting, saying that a number of cases of "elderly care" turning into "pitting old" had recently been discovered, which seriously damaged the legitimate rights and interests of the elderly.
In an interview with reporters, Mr. Deng, who has been in the elderly care industry for more than 10 years, said that the business model of the elderly care industry in Changsha reflects the widespread contradiction between the rapid expansion of urban elderly care demand and the lack of resources in socialized elderly care institutions in recent years.
According to the "2017 Statistical Bulletin of the Development of the Elderly in Changsha City", as of the end of 2017, among the 7.91 million permanent residents of Changsha, there were more than 950,000 elderly people aged 65 and over, accounting for 12.09% of the total permanent population, and senior citizens over 80 years old. More than 180,000 people.
In 2018, the permanent population of Changsha has reached 8.15 million.
According to the national policy design "9073" (90% home, 7% community, 3% institutions) elderly care service pattern, nearly one million elderly people in Changsha need elderly care services and need more than 30,000 beds in elderly care institutions .
Mr. Deng analyzed that the existing elderly care system in Changsha includes welfare homes, community elderly care and professional institutions.
The former is of the nature of national welfare, and is aimed at the five-guarantee households' widows and lonely elderly groups, with limited service levels, facilities and accommodation capacity.
Community care and institutional care are areas where social resources pay more attention.
The institutional pension investment is large, the construction scale and conditions are good, and it is relatively competitive.
In November 2019, information published on the official website of the Changsha Civil Affairs Bureau indicated that there are 63 private elderly care institutions in 9 counties and districts in the city that have applied for or filed for retirement, with nearly 10,000 beds.
There is still a big gap in the market demand for the elderly in Changsha.
Because his son was not by his side, Uncle Duan began to consider the issue of old-age care for him and his wife after he retired. The nanny was not good enough for him, so he finally decided to live in a nursing home.
Like Uncle Duan, many elderly people inspected many retirement apartments on the market. The reason why they chose to live in apartments like "Heart of Love" and Shunxiang was that they were built in the suburbs with good environment, good air, and good hardware conditions. The charges are also "reasonable."
And this kind of elderly care institutions are basically not in the "white list" announced by the Civil Affairs Bureau, relying on strong marketing capabilities to attract attention.
According to old people's reports, sales staff said that this "investment in pension" model "is in line with national policies."
After participating in the investment, become a member and enjoy a discount on bed fees.
The national policy support mentioned by the salesperson-the state "allows for the elderly to make up for the lack of funds for facility construction, through the sale of prepaid membership cards, etc.".
In this regard, the reporter inquired about the Opinions on Promoting the Development of Elderly Care Services, a document issued by the State Council in 2019, and found that marketers of elderly care institutions were taken out of context.
The original text of Item 17 of the document is: In order to make up for the lack of funds for facility construction, pension institutions should sell prepaid membership cards, etc., in accordance with the principle of tolerance and prudence, clarify restrictive conditions, and adopt third-party depository methods in commercial banks to ensure Safe use of fund management.
Obviously, marketers only talked the first half to the old people, and the keywords behind were hidden.
2. "It's really hard to make money in this industry"
Huge fund-raising and expensive fees, but the "dividend type" pension sponsored by most social organizations have ended one after another, exposing the chaos of their operation and management.
Uncle Duan introduced that he invested 110,000 yuan at the time, and the boss gave him a 25% discount on the room rate, which is 660 yuan per month for a bed, and he also enjoyed a discount on service fees.
"Calculated like this, it costs three to four thousand yuan for others to live in, and for a room of our couple, it only costs two hundred and two thousand yuan a month."
The high return on investment and the service charges below the market simply cannot sustain the operation of retirement apartments.
After the capital chain broke, the "Love Heart" apartment fell into a dilemma: the more than 200 elderly people living in the apartment almost "ran out of food."
At the briefing meeting in Tianxin District, Changsha City, the person in charge of the District Political and Legal Committee stated that there are 221 elderly people living in the "Love Heart" apartment, with a total monthly income of about 400,000 yuan, but a monthly expenditure of about 600,000 yuan.
An investigation by the relevant departments of Changsha City shows that since the establishment of "Love Heart" on July 22, 2010, its capital flow has been mainly divided into four areas: employee salaries and commissions of 101 million yuan, and the amount of payment that can be checked in the book is 239 million yuan. The apartment building construction cost is 92.3 million yuan, and all investment and real estate are about 58 million yuan.
"Professional marketing" teams accounted for most of the expenses.
The apartment has set up "marketing departments" in Changsha, Zhuzhou, and Xiangtan.
The apartment beds were "service outsourced" to more than 20 "professional marketing" teams from Guilin, Guangxi for distribution.
The Marketing Department commissions 18%-25% according to the "development" level of senior citizens' savings.
"Heart of Love" employs more than 70 staff with an average salary of more than 4,000 yuan.
Industry insider Mr. Deng said, “In recent years, the elderly care industry is hot, with high demand from citizens and a lot of social capital attention, but it is really difficult to make money in this industry.” He researched many community elderly care, institutional elderly care and welfare homes, even in the country. With land allocation, tax relief and bed subsidies, profitability remains a problem.
Located in Changsha County, Qingsong Pension Apartment is the largest pension institution on the "white list" of the Changsha Civil Affairs Bureau. It was awarded the "Pioneering Work Priority to Primary Party Organizations" by the Organization Department of the Central Committee, with 1,500 beds.
The person in charge of the apartment, Yang Songqing, told reporters that the apartment is a non-profit elderly care institution approved by the Changsha County Civil Affairs Bureau, and the country's first well-off retirement model apartment.
The retirement apartment has been established for 11 years. The first phase has 4 buildings with a construction area of nearly 40,000 square meters. It has residential areas for the elderly, hospitals, canteens, nursing training centers, Chinese learning halls, and fitness venues.
"Total assets are nearly 400 million yuan, but liabilities are also high."
He revealed that there are currently more than 700 elderly people living in apartments, and a total of more than 200 administrative and care workers.
The annual cost for some disabled elderly is about 50,000 yuan per person, and 60,000 yuan for the completely disabled.
The average monthly income of nursing workers is more than 3,000 yuan.
At present, they have started the second phase of the project after approval, and plan to expand to a total capacity of 2,000 people.
"Our current debt ratio is as high as 80%, and the interest that needs to be paid every year is more than 10 million yuan." Yang Songqing said that a good pension apartment must be a combination of medical care and care. They have been approved by the government to set up a first-level general hospital. For general diagnosis and treatment of senile diseases.
"The hospital has raised more than 30 people. This was pure investment in the early stage and preparations for the second phase." Yang Songqing said that because it is located in Changsha County, one of the top 100 counties in the country, the local financial resources are abundant and some preferential treatments are also given to apartments. According to the policy, the power supply of the apartment is guaranteed by dual circuits, and the water and gas are separately wired from a few kilometers away.
As the leading elderly care demonstration unit in Hunan Province, he still feels that life is tight, and the apartment must guarantee about 30% of the balance each year to deal with huge interest expenses.
To recover the cost, it is estimated that it will take 8-10 years under the condition of ensuring full housing.
"We plan to move in to 1,200 people next year and 1,500 in the next year. In this way, 20 million yuan can be retained each year to resolve debts."
Hunan community elderly care "Xileyuan" is a leader in the industry, and its innovation has created a "a bowl of hot meal distance" elderly care model.
The person in charge He Guocai said that in the past five years, Changsha's medium-sized elderly care institutions with integrated medical care and small community outlets that integrate functions such as home and care for life have developed rapidly.
The state provides support for personnel training, intelligent equipment, information tools, etc., and provides financial subsidies based on the number of beds and the flow of occupancy, and various urban areas also have certain financial support.
Because it is close to home, there are 70 or 80 beds in each community.
In recent years, the "Xile Garden" model has blossomed everywhere in Changsha, Zhuzhou and other places, with more than 70 establishments and a total of more than 2,700 beds.
At present, they have undertaken a government agency pension project in Chenzhou City, Hunan Province, with about 500 beds, which are expected to be put into use this year.
Among the shareholders of "Xileyuan" are the Hunan Xiangya Group and provincial funds with state-owned assets. After years of hard work, the investment is still slow.
"A single branch is profitable, but the overall situation is still difficult." He Guocai said that he is considering the model of cooperation with the community and changing the lease relationship for the government to purchase community care services.
In contrast, social institutions such as the "heart of love" that are not on the "white list" have not been able to enjoy policy subsidies, and their business models are facing greater problems.
3. Policies to be loosened to test the water, "long-term care insurance" is placed in the category of "five insurances and one housing fund"
With the support of the local government, the "Heart of Love" apartment "survived with broken arms": only more than 30 staff members are retained. The old people who have paid the fund-raising funds originally charge 10% off the Changsha Qingsong Apartment.
According to industry insiders, the domestic elderly care industry will usher in a blowout development demand in the next 5-10 years, but for now, the income structure of the elderly is also a restrictive factor.
Most people born in the 1940s can be taken care of by their children.
People in the 1950s began to accept institutional pensions, but they had a retirement income of five to six thousand yuan, and it was difficult to spend more than 4,000 yuan a month to provide for the elderly.
Most of their children are born in the 70s and 80s, and housing loans, children's education, and parents' medical expenses are all real pressures.
Mr. Deng said that the state has adopted a series of policies such as decentralization, regulation and service, which has changed from licensing to filing for pension institutions, relaxing channels and encouraging private capital to enter the pension market, but further relaxation is needed.
Ms. Zou from Changsha was deeply moved.
In the first two years, she and her friends planned to build the largest retirement apartment in Hunan. Their confidence came from "not bad money."
"The first phase is going to invest 200 million yuan in funds, no bank loan is required, and the site is located in the center of Changsha Beicheng District, which has transportation advantages."
They designed a trendy model of "travel + elderly care", communicated with Zhangjiajie Phoenix and other scenic spots, and made a special trip to Japan to study the operation of retirement apartments, and they planned to hire a Japanese team to trade.
"However, after consulting a market research company to conduct research, it was found that the investment cost is huge. Because the national pension industry tends to be non-profit, it is necessary to make private non-enterprise units enter the government management sequence. Although they enjoy various preferential policies, the nature of the assets is essentially not It belongs to investors. And with the high-end positioning of nursing homes, 200 million yuan will be stretched for one year.” In the end, this investment project was changed to building a star hotel.
Yang Songqing proposed that the "Regulations on Private Non-Enterprise Registration" applicable to private non-enterprise elderly care institutions were implemented in 1998, and it has not adapted to the current reality.
Take Qingsong Apartment as an example. The good service has attracted many elderly people who intend to live in. However, the investment of several hundred million in assets has not been able to obtain mortgage loans from financial institutions to ease the pressure on liquidity.
The high cost of borrowing has limited its development.
There are also policy thresholds for the inflow of social capital.
"There is social capital to invest. I told him that this can only be counted as a donation, because the assets will be national in the future."
He Guocai said that "Xileyuan" and Qingsong Apartment belonged to the first batch of approved "private non-enterprise" pension institutions. After that, they withdrew from the industry because they could not absorb social funds.
"Relying on government support can be maintained, but it is difficult to grow bigger. After all, there are too many monks and less porridge."
Huang Yansong, dean of the School of Medicine of Changsha Civil Affairs Vocational and Technical College, said that the state attaches great importance to socialized elderly care. Taking into account the particularity of the elderly care industry and operating costs, it has given a number of policy support in terms of relaxing investment and financing channels for elderly care services, such as mortgages. Loan, bond issuance, etc.
Regarding the problem of the inability of retired elderly people to bear the higher institutional pension expenses, some provinces in China have considered putting “long-term care insurance” such as pension into the “five social insurance and one housing fund” category.
Hunan Province is studying relevant measures to solve the problem of where the money comes from.
Both Yang Songqing and He Guocai believe that the implementation of this type of insurance is a top priority, which can promote the stable development of the elderly care industry and play the role of "good money driving out bad money".
"If elderly care services can be paid with a credit card, the government will screen out qualified elderly care units like approved medical insurance units. In this way, those with high-quality services and good reputation will win."
In the interview, the person in charge of an elderly care institution suggested that the requirements of the State Council’s No. 5 document in 2019 on the prudent and inclusive “membership” should be implemented, but it must be ensured that the funds are fully used for the elderly care and should be set like a “housing provident fund”. In the strict management and control of government departments, to prevent the occurrence of cases such as money running away and investment explosion.
In August of this year, Xiao Gang, the former chairman of the China Securities Regulatory Commission and a senior researcher of the China Financial Forty Forum, said in the release of the "2020·Jingshan Report" on behalf of the China Financial Forty Forum that during the "14th Five-Year Plan" period (2021-2025) In the face of more complex and severe situations at home and abroad, the Chinese economy must tap and release the potential of new advantages in the super-large-scale market.
However, there are still some obstacles and challenges to transform this potential into practical advantages.
From the supply side, the imbalance between supply and demand in fields such as medical services, elderly care services, and domestic services does not involve too complex technical innovation shortcomings, but is mainly restricted by system and policy barriers.
Huang Yansong said that the country's promotion of the development of elderly care services has become a top priority, but the elderly care industry is a very special industry, with large investment, slow results, and long cycles, which contradicts the social capital's expectation of making quick money.
The key to achieving high-quality operation of elderly care institutions is to provide quality services and identify the needs of the elderly. Only in this way can the elderly care institutions stabilize and gradually realize profits.
He noticed a phenomenon. In many elderly care institutions in the county and urban areas, aunts in their 40s and 50s are taking care of the 70-80s.
Most of these nurses have no professional training and can only do some simple living care.
Therefore, it is particularly urgent to speed up the training of maintenance talents, improve service quality, and meet the more individual needs of the elderly.
China Youth Daily · China Youth Daily reporter Hong Kefei Source: China Youth Daily