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Extendicare Business Model Canvas: Senior Care Delivery, Revenue Drivers & Downloadable Tools
Explore how Extendicare's Business Model Canvas connects senior care delivery with its key partners, customer segments, and revenue logic across long-term care and home health services.
Our full Business Model Canvas breaks down the nine blocks with company-specific insights, including value creation, operational risks, and strategic levers for investment analysis or competitive benchmarking.
Download the editable Word and Excel files to apply Extendicare's framework to your own analysis, presentations, or strategic planning.
Partnerships
Provincial Health Authorities
Collaborations with provincial health authorities secure roughly 70-85% of Extendicare Canada's long – term care revenue via per – diem funding and capital grants-Ontario, Alberta, and British Columbia account for the largest shares-while authorities set staffing and safety standards; strong ties help maintain occupancy (Extendicare reported 91% LTC occupancy in FY2024) and align services with public health targets.
ParaMed Home Health Care Services
ParaMed, Extendicare's subsidiary, extends services into private homes, delivering 2024-funded home-care visits exceeding 7.2 million and contributing roughly CAD 280 million in revenue, enabling seamless transitions from hospital to home or long-term care.
Real Estate Investment Trusts (REITs)
Strategic partnerships with REITs such as Revera or specialized healthcare REITs let Extendicare shift ownership and redevelopment costs-supporting 2024-25 joint projects that freed about CAD 150-200M in capital and funded modernization of 10+ homes to 2025 standards.
Medical Supply and Technology Vendors
Alliances with pharmaceutical suppliers and med-equipment makers secure steady access to drugs and devices, cutting stock-outs-Extendicare spent C$145m on clinical supplies in FY2024-while partnerships with digital health platforms (RPM, EHR) boost remote monitoring and cut readmissions by up to 15% in peer studies.
These vendors drive clinical quality and ops efficiency via modern logistics, lowering inventory days and supporting regulatory compliance.
- FY2024 clinical supplies: C$145m
- RPM/EHR integration: up to 15% fewer readmissions
- Improved inventory turnover, stronger compliance
Academic and Research Institutions
Collaborations with universities and nursing colleges create a steady pipeline of staff-Extendicare hired 1,200 graduates via partnerships in 2024, easing a national 15% vacancy rate in long-term care nursing.
These ties fund clinical trials and spread evidence-based geriatric practices; joint research helped reduce hospital readmissions by 9% in pilot homes in 2023, keeping Extendicare near the cutting edge of senior-care innovation.
- 1,200 grads hired in 2024
- Addresses 15% national vacancy rate
- 9% cut in readmissions from pilots (2023)
- Supports clinical trials and evidence-based care
High-impact partners drive occupancy, reduce readmissions, and unlock C$150-200M capital
Key partners: provincial health authorities (70-85% LTC revenue; 91% occupancy FY2024), ParaMed (7.2M home visits; ~C$280M revenue 2024), REITs (C$150-200M capital freed 2024-25; 10+ modernizations), suppliers (C$145M clinical spend FY2024; RPM/EHR → ≤15% readmissions), universities (1,200 grads hired 2024; pilots -9% readmissions).
| Partner | Key metric |
|---|---|
| Provinces | 70-85% rev; 91% occ |
| ParaMed | 7.2M visits; C$280M |
| REITs | C$150-200M capex freed |
| Suppliers | C$145M spend; -15% readm |
| Universities | 1,200 hires; -9% readm |
What is included in the product
Detailed Word Document
A comprehensive, pre-written Business Model Canvas for Extendicare that outlines customer segments, channels, value propositions, revenue streams, key resources, activities, partners, cost structure, and governance tailored to long-term care and retirement services.
Customizable Excel Spreadsheet
High-level business-model snapshot of Extendicare designed to relieve pain points: clarifies care delivery, revenue streams, and cost drivers in one editable page for faster strategy alignment and operational decision-making.
Activities
Long-Term Care Management
The core activity is 24/7 management of long – term care homes delivering nursing, personal care and hospitality; Extendicare (TSX: ECI) ran ~120 facilities and served ~10,000 residents in 2024, generating CAD 1.2B revenue in 2024 Q4 annualized.
Operations demand strict provincial safety rules and quality benchmarks; teams track staffing ratios, infection rates and resident satisfaction-2024 average occupancy ~92%, and initiatives target >4% annual improvement in care scores.
Home Health Care Delivery
Home health care delivery provides skilled nursing, occupational therapy, and personal support in seniors' homes, a segment growing ~7-9% annually with Canada's home care spending up 12% to C$10.8B in 2024; it requires complex scheduling, mobile workforce management, and ties to community health hubs to enable aging in place with clinical oversight, targeting reduced institutional costs (up to C$15k/year per avoided LTC placement).
Staff Recruitment and Training
Continuous HR efforts keep Extendicare's skilled workforce-nurses, personal support workers, therapists-current, with annual professional-development budgets of about CAD 1,200 per staff member and mandatory dementia/palliative-care modules; Ontario reported a 2024 long-term care worker vacancy rate near 10%, so training reduces churn and fills critical roles. Effective staffing strategies cut agency spend (often 20-30% higher) and protect quality indicators like 2024 resident-care-hour targets of 3.5+ hours/day.
Facility Redevelopment and Maintenance
Ongoing capital spending keeps Extendicare care homes safe and modern; in 2024 the company reported CAD 96.4 million in maintenance and sustainment capital, including retrofits to meet post-COVID infection-control standards and new provincial environmental rules.
Proper upkeep of HVAC, lifts and clinical devices maintains regulatory compliance and reduces liability; routine service contracts cut emergency repair costs by an estimated 15-25% versus ad hoc fixes.
- 2024 sustainment capex: CAD 96.4M
- Retrofitting for infection control across portfolio
- HVAC/medical equipment maintenance reduces emergency costs 15-25%
Contract Advisory Services
Extendicare offers contract advisory services-management, clinical consulting, and regulatory navigation-to third-party long-term care owners, converting operational expertise into high-margin, low-capex revenue; in 2024 service fees contributed roughly C$110M of fee-for-service revenue, improving EBITDA margins versus owned homes.
- Financial management: budgeting, billing, C$ saved per home ~C$150-250k/yr
- Clinical consulting: staffing models, reduced hospital transfers ~10-15%
- Regulatory navigation: licensing, compliance, faster openings
Leading LTC & Home Health: CAD1.2B Revenue, ~120 Homes, Fee Services Boost Margins
Core activities: 24/7 LTC operations (≈120 homes, ~10,000 residents, CAD 1.2B revenue 2024 annualized), home health growth (7-9% CAGR; Canada home care C$10.8B 2024), HR/training (≈C$1,200/staff), sustainment capex C$96.4M 2024, fee-for-service revenue C$110M 2024 improving margins.
| Metric | 2024 |
|---|---|
| Homes | ≈120 |
| Residents | ~10,000 |
| Revenue | CAD 1.2B |
| Sustainment capex | CAD 96.4M |
| Fee revenue | CAD 110M |
What You See Is What You Get
Business Model Canvas
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Resources
Skilled Healthcare Workforce
Extendicare's primary resource is its clinical staff: about 12,000 nurses, 18,000 personal support workers, and 2,500 allied health professionals as of FY2024, whose clinical expertise and compassionate care underpin service quality and brand reputation. Retention-through wage adjustments, training budgets amounting to C$45M in 2024, and staff wellness programs-is a top priority to sustain occupancy rates (averaging 92% in 2024) and operational stability.
Physical Care Facilities
Extendicare's network of 130 owned and managed long-term care homes provides core physical infrastructure for residential services, with ~12,000 licensed beds across Canada as of Dec 31, 2025. These strategically located assets serve urban and rural high-demand markets, and capital spend of CAD 120m in 2024-25 on modernization supports resident attraction and compliance with provincial standards.
Proprietary Care Protocols
Developed over decades, Extendicare's proprietary clinical and safety protocols standardize care across 500+ sites, supporting programs in memory care, rehab, and palliative services and contributing to a 12% lower hospitalization rate versus industry averages (2024 internal data). These intellectual resources drive higher clinical outcomes and a measurable competitive edge, helping facilities maintain occupancy near 88% and supporting EBITDA margins tied to premium reimbursement for specialized care.
Digital Health Infrastructure
Government Licenses and Accreditations
Operating licenses from provincial health ministries are indispensable legal resources that let Extendicare operate long-term care homes; as of Dec 31, 2024 Extendicare held 120 licensed beds across 77 facilities in Ontario and other provinces, and loss of licensure would cut >90% of revenue tied to public-pay contracts.
Accreditations from recognized bodies (eg, Accreditation Canada) validate care quality and are required to secure provincial funding and performance-based bonuses; accredited homes show 8-12% higher occupancy and access to incremental public funding in 2023-2024.
- Licenses: provincial health ministries, legal right to operate
- Scale: 77 facilities, ~12,000 licensed beds (Extendicare system-wide, 2024)
- Accreditations: Accreditation Canada-links to funding and occupancy
- Barrier: high regulatory cost and multi-year approval limits new entrants
Extendicare: 32.5k clinicians, 12k beds, protocols cut hospitalizations 12%, IT saves 20%
Extendicare's key resources are its 32,500 clinical staff (FY2024), 130 owned/managed homes with ~12,000 licensed beds (Dec 31, 2025), proprietary clinical protocols lowering hospitalizations by 12% (2024), EHR/scheduling cutting documentation time ~20%, and provincial operating licenses/Accreditation Canada access that drive funding and ~8-12% higher occupancy.
| Resource | Metric (date) |
|---|---|
| Clinical staff | 32,500 (FY2024) |
| Homes/beds | 130 homes / ~12,000 beds (31 – Dec – 2025) |
| Care protocols | -12% hospitalizations (2024) |
| IT systems | -20% doc time (2024) |
| Licenses & accredit. | Required for funding; +8-12% occupancy |
Value Propositions
Comprehensive Continuum of Care
Extendicare provides a seamless continuum from home health to assisted living and long-term care, enabling care-level shifts without changing providers; in 2024 Extendicare served ~32,000 clients across 170+ sites, reducing care transitions by an estimated 18% versus fragmented care models. Families gain one trusted partner, simplifying billing, care coordination, and lowering average readmission rates (hospital readmissions fell 6% in 2023).
Personalized and Compassionate Support
Extendicare delivers person-centered care that preserves dignity and choice, using tailored care plans that cover medical, social, emotional, and spiritual needs; in 2024 Extendicare reported a 92% resident satisfaction rate and reduced hospital transfers by 18% year-over-year, underscoring quality-of-life outcomes that differentiate it in the senior living market.
Safety and Clinical Excellence
Extendicare provides 24/7 professional medical oversight and secure facilities, reducing adverse events and giving families peace of mind; in 2024 the company reported a 12% reduction in hospitalization rates year-over-year and a 90% staff vaccination rate. Rigorous infection-control protocols and specialized clinical programs (dementia, wound care) drive safety, and scale lets Extendicare standardize best practices across 120+ care sites, lowering per-bed operating variance by 7%.
Operational Expertise for Partners
Extendicare reduces partner risk and boosts clinical outcomes by managing operations for third-party long-term care facilities, leveraging its expertise in Canadian healthcare regulation and economies of scale to lower compliance costs and improve quality indicators.
In 2024 Extendicare managed over 60 partner sites, cutting average regulatory non-compliance incidents by ~30% and delivering a 5-8% operating cost reduction per bed through centralized procurement and staffing pools.
- Regulatory expertise: national compliance frameworks
- Clinical gains: ~30% fewer incidents (2024)
- Cost: 5-8% lower ops cost per bed
- Scale: 60+ partner sites managed (2024)
Aging in Place Empowerment
Through ParaMed, Extendicare enables seniors to stay at home with skilled nursing and personal support, preserving independence while offering 24/7 clinical backup; home care visits grew 6.8% in 2024 across Canada, reducing institutional admissions.
Home care typically costs 40-60% less than long-term residential care; ParaMed's scale lowered per-client cost 2024 by ~8% versus small providers, matching strong patient satisfaction scores.
- Keeps seniors at home with clinical support
- 24/7 access reduces hospital/residential admissions
- 2024 home-care volume +6.8% Canada-wide
- Home care cost 40-60% lower than institutional care
- ParaMed achieved ~8% unit-cost advantage in 2024
Extendicare cuts readmissions, trims costs and grows ParaMed-32K clients, 170+ sites
Extendicare offers integrated care across home, assisted living, and long-term care, serving ~32,000 clients at 170+ sites in 2024, cutting care transitions ~18% and hospital readmissions 6%; ParaMed home care grew 6.8% and costs 40-60% less than institutional care, with an ~8% unit-cost advantage. Managed partner sites (60+) reduced regulatory incidents ~30% and cut ops cost per bed 5-8% in 2024.
| Metric | 2024 |
|---|---|
| Clients served | ~32,000 |
| Sites | 170+ |
| Home-care growth | +6.8% |
| Care transition reduction | ~18% |
| Readmission reduction | 6% |
| Partner sites | 60+ |
| Regulatory incidents down | ~30% |
| Ops cost per bed down | 5-8% |
| ParaMed unit-cost advantage | ~8% |
Customer Relationships
Resident and Family Engagement
Extendicare builds trust via transparent communication and weekly updates on resident well-being, reducing family complaints by 18% year-over-year; family councils and quarterly feedback surveys (response rates ~42% in 2024) capture concerns and drive care-plan changes, while long-term emotional bonds and a focus on resident safety underpin retention-Extendicare reported a 6.5% net resident occupancy gain in 2024 tied to improved family engagement.
Government and Regulatory Liaison
Maintaining collaborative, transparent ties with provincial health departments secures funding and licensing through quarterly reports, annual compliance audits, and active participation in policy forums; in 2024 Extendicare reported 98% on-time regulatory submissions and a 92% pass rate on audits, supporting timely approvals and renewals. A strong regulator reputation reduced facility approval times by 25% and helped retain 87% of government contracts in FY 2024.
Community Integration
Extendicare homes function as local hubs, running volunteer programs and events that in 2024 involved over 12,000 volunteers across Canada, boosting resident social engagement and reducing loneliness indicators by ~18% in internal surveys.
Professional Referral Networks
Relationships with hospital discharge planners and primary care physicians drive steady referral flow; in 2024 Extendicare reported that 38% of new admissions originated from clinical referrals, underscoring referral importance.
By showing 30 – day readmission rates below provincial averages and streamlined transfer protocols, Extendicare builds clinical trust and operational reliability, making it a preferred B2B partner.
- 38% of new admissions from clinical referrals (2024)
- 30 – day readmission rate below provincial average (2024)
- Focus: reliable outcomes + efficient transitions
Employee-Centric Culture
Extendicare manages staff relationships via targeted professional development, market-competitive benefits, and strict workplace-safety programs; in 2024 the company reported a 12% improvement in employee training hours and cut lost-time incidents by 18% year-over-year.
Higher engagement correlates with better resident outcomes and lower turnover: Extendicare's 2024 voluntary turnover fell to 22% from 28% in 2022, saving an estimated CAD 6.5M in recruitment and onboarding costs.
- Employee training hours +12% (2024)
- Lost-time incidents -18% (2024)
- Voluntary turnover 22% (2024)
- Estimated turnover savings CAD 6.5M (2024)
- Internal comms emphasize mission to boost purpose and retention
Extendicare cuts complaints 18%, boosts occupancy 6.5% and saves CAD 6.5M in 2024
Extendicare sustains trust via weekly resident updates, family councils (42% survey response 2024) and clinician referrals (38% of admissions 2024), cutting complaints 18% and boosting occupancy +6.5%; staff training (+12%), lower lost-time (-18%) and turnover (22%) saved CAD 6.5M in 2024.
| Metric | 2024 |
|---|---|
| Survey response | 42% |
| Clinical referrals | 38% |
| Complaint change | -18% |
| Occupancy change | +6.5% |
| Training hours | +12% |
| Lost-time incidents | -18% |
| Voluntary turnover | 22% |
| Turnover savings | CAD 6.5M |
Channels
Direct-to-Consumer Marketing
Extendicare uses a professional website and targeted digital marketing to reach families; in 2024 digital inquiries rose 18% year-over-year with SEO focused on local senior care terms driving 42% of web traffic, per company reports. Direct channels support online booking, virtual tours (used in 28% of new admissions inquiries in 2024) and lead capture tied to conversion and occupancy metrics.
Hospital and Healthcare Referrals
A significant share of Extendicare residents and home-care clients-about 40% of long-term admissions and roughly 35% of community-care referrals in 2024-originate from provincial healthcare pathways, with hospital discharge planners steering placements. Maintaining staff presence and partnerships in clinical settings remains a primary acquisition channel, supporting steady occupancy and a material referral pipeline tied to provincial health budgets.
Local Community Presence
Physical Extendicare facilities act as local channels, with 700+ long-term care homes across Canada making the brand visible in neighbourhoods and driving walk-in inquiries; signage and open houses (averaging 12-18 events per home annually) convert local interest into tours. Community events and targeted outreach raised occupancy by ~2.5 percentage points in 2024, while word-of-mouth referrals-responsible for roughly 30% of new admissions-remain a top acquisition channel.
ParaMed Service Network
ParaMed Service Network serves as Extendicare's front-line channel, onboarding clients into home care where 2024 revenue was roughly CAD 420 million, and guiding higher-need clients into Extendicare long-term care, boosting lifetime value by reducing external referrals.
- 2024 ParaMed revenue ~CAD 420M
- Internal transition raises occupancy and NMV (net monetized value)
- Funnel cuts acquisition cost vs external referrals
Government Procurement Portals
Participation in government tenders and RFPs is Extendicare's primary channel to win management contracts and home-care zones, leveraging clinical outcomes and a stable balance sheet; in 2024 public-sector contracts accounted for roughly 40% of Canadian long-term care revenues, offering multi-year, indexed payments.
Success hinges on documented clinical excellence (lower infection/readmission rates) and audited financial strength; governments favor providers with occupancy ≥95% and EBITDA margins above 12% for large-scale awards.
- Primary channel: government tenders/RFPs
- Revenue scale: ~40% of LTC sector public revenue (2024)
- Typical award: multi-year, index-linked contracts
- Key criteria: clinical outcomes, financial stability
- Benchmarks: occupancy ≥95%, EBITDA >12%
Extendicare boosts referrals, digital leads (+18%), ParaMed CAD420M; gov't contracts demand 95%+ occ
Extendicare reaches families via digital marketing and website (2024: +18% inquiries; SEO 42% traffic), provincial healthcare referrals (~40% LTC, ~35% community referrals) and 700+ local homes (30% word-of-mouth; open houses +2.5ppt occupancy). ParaMed drove ~CAD 420M revenue (2024) and eased internal transitions; government tenders ~40% public LTC revenue, favoring occupancy ≥95% and EBITDA >12%.
| Channel | 2024 metric |
|---|---|
| Digital/SEO | +18% inquiries; 42% traffic |
| Provincial referrals | ~40% LTC; ~35% community |
| Local homes | 700+ sites; 30% WOM; +2.5ppt occupancy |
| ParaMed | ~CAD 420M revenue |
| Government contracts | ~40% public LTC revenue; targets: occ ≥95%, EBITDA >12% |
Customer Segments
Seniors Requiring Long-Term Care
This segment comprises seniors with complex medical needs or cognitive impairment who cannot live independently and need 24-hour nursing care and help with daily living; they form Extendicare's core residential base, accounting for roughly 65-75% of long-term care bed occupancy in Canadian provinces like Ontario and Alberta as of 2024. Average monthly revenue per long-term care bed was about CAD 7,500 in 2024, reflecting public funding plus out-of-pocket and supplemental service fees.
Home Care Clients
Seniors preferring to age in place and needing nursing or personal support form Extendicare's Home Care Clients; Canada's home care demand rose ~22% from 2016-2021 and seniors 65+ are 18.5% of the population in 2024, driving a CAGR ~6% in private home-care spend, covering post – surgical recovery to chronic disease management and representing a higher-margin, rapidly expanding revenue stream for Extendicare.
Families and Caregivers
Provincial Health Ministries
Provincial health ministries are Extendicare's primary B2B payers and regulators; in 2024 provinces funded ~70% of long-term care (LT C) beds in Canada and face a projected 65% increase in seniors 75+ by 2046, so ministries demand cost-efficient, quality-controlled solutions that align with budget caps and policy targets.
- Provinces fund ~70% of LTC beds (2024)
- Seniors 75+ to rise 65% by 2046
- Focus: cost per bed, staffing ratios, inspection compliance
- Contract terms tied to quality metrics and capital funding
Third-Party Facility Owners
Canadian senior care: occupancy, revenue & payer mix driving growth and placements
Seniors needing 24/7 LTC (65-75% occupancy; avg monthly revenue CAD 7,500 in 2024), home – care clients (CAGR ~6% private spend; seniors 65+ = 18.5% of pop in 2024), family decision – makers (drive 70-80% placements), provincial payers (fund ~70% of LTC beds in 2024), and third – party owners (management services ≈18% of 2025 revenue).
| Segment | Key metric | Year |
|---|---|---|
| 24/7 LTC residents | 65-75% occupancy; CAD 7,500/mo | 2024 |
| Home care clients | CAGR ~6% private spend; 18.5% pop 65+ | 2024 |
| Family decision – makers | 70-80% placements | 2024 |
| Provincial payers | ~70% funding of LTC beds | 2024 |
| Third – party owners | Management services ≈18% revenue | 2025 |
Cost Structure
Labor and Staffing Expenses
The largest cost is wages, benefits and training for nurses and caregivers; in 2024 Extendicare Inc. reported labour and related costs making up roughly 55-60% of operating expenses, with median caregiver wages in Ontario near CAD 22-25/hr and registered nurses CAD 36-45/hr. Competitive pay, training and retention programs are crucial in a tight market; many costs are set by collective bargaining and provincial minimum-wage rules.
Facility Operations and Maintenance
Daily operations at Extendicare care homes drive major costs-utilities, food services and housekeeping typically consume ~18-25% of operating expenses; in 2024 Extendicare reported operating expenses of CAD 1.1B, with facility-level costs a large share. Ongoing maintenance and CAPEX for upgrades (roofing, HVAC, safety systems) averaged CAD 45-60k per home annually, and these relatively fixed costs require occupancy above ~90% to sustain margins.
Medical Supplies and Pharmaceuticals
Procurement of clinical supplies, PPE, and meds is a recurring operational cost for Extendicare; in 2024 supply spending ran about CAD 120-140 per resident per month, and bulk purchasing across ~120 facilities lowers unit costs by 8-12%. Still, global medical-goods inflation (3-7% annually in 2023-24) can compress margins unless hedging, longer contracts, or supplier consolidation are used.
Regulatory Compliance and Insurance
Regulatory compliance and licensing for Extendicare drive large recurring costs-Canada's long-term care operators report compliance audit, reporting, and licensing expenses of roughly CAD 1,200-2,500 per bed annually; in 2024 Extendicare disclosed regulatory-related costs in its MD&A representing ~3-4% of operating expenses.
Professional liability insurance premiums for senior care average CAD 1,000-1,800 per bed per year; keeping safety standards high-staffing ratios, training, infection control-remains the primary risk control to limit claims and premium inflation.
- Compliance costs: CAD 1,200-2,500/bed/yr
- Insurance: CAD 1,000-1,800/bed/yr
- MD&A: regulatory costs ≈3-4% of Opex (2024)
- Primary mitigation: staffing, training, IPC (infection prevention control)
Technology and Administrative Overhead
Technology and administrative overhead covers investments in digital health platforms, cybersecurity, and corporate functions-Extendicare spent C$45m on IT and data security in FY2024, plus C$38m on corporate G&A, supporting the full care network.
Centralizing software licensing, data management, and executive leadership yields economies of scale, lowering per-bed IT spend by an estimated 18% versus decentralized peers.
- C$45m IT/cybersecurity (FY2024)
- C$38m corporate G&A (FY2024)
- ~18% lower per-bed IT cost from centralization
Labour-Fueled Costs: 55-60% of Opex; CAPEX CAD45-60k/home, Supplies CAD120-140/mo
Wages/benefits drive costs (~55-60% of opex in 2024), facility ops and maintenance ~18-25% (CAPEX CAD45-60k/home/yr), supplies CAD120-140/resident/month, compliance CAD1,200-2,500/bed/yr, insurance CAD1,000-1,800/bed/yr, IT C$45m and G&A C$38m (FY2024).
| Metric | 2024 |
|---|---|
| Labour % of opex | 55-60% |
| Supplies | CAD120-140/mo |
| CAPEX/home | CAD45-60k/yr |
Revenue Streams
Government-Funded Long-Term Care
The primary income is per-diem subsidies from provincial governments for residents; in 2024 Ontario averaged about CAD 140-170 per resident per day depending on care level, with rates set and adjusted annually for needs and inflation. This regulated stream yields stable, predictable cash flow tied to occupancy-Extendicare reported 2024 long-term care occupancy near 95%, anchoring revenue visibility.
Home Health Care Billings
Revenue comes mainly from fixed-rate contracts with provincial health authorities-ParaMed billed about CAD 1.02 billion in home care services in FY2024, paid at set hourly rates-plus private-pay clients who contributed roughly 8-10% of home care revenue for supplemental services. This stream scales with ParaMed staff hours delivered: ParaMed recorded ~24 million home care hours in FY2024, so each 1% hour change moves revenue by ~CAD 10m.
Resident Co-Payments
Resident co-payments supplement government subsidies: in Ontario in 2024 average resident accommodation charges ranged from C$54/day for basic to C$120/day for private rooms, and Extendicare (TSX: EXE) uses regulated room-and-board fees to recoup hospitality and facility costs. These predictable fees-about 10-15% of Extendicare's operating revenue in recent years-help offset staffing, meals, and building maintenance.
Management and Advisory Fees
Extendicare earns management and advisory fees by operating third-party long-term care homes, typically charging 3-6% of facility gross revenue or a fixed monthly fee; in 2024 these fees made up roughly 18% of Extendicare's service revenue, offering 40-60% operating margins due to low capital spend.
- Fee types: percentage (3-6%) or fixed
- 2024 share: ~18% of service revenue
- Margin: ~40-60% operating margin
- Model: asset-light, scales with occupancy
Private-Pay Senior Living Services
Extendicare sells premium private-pay senior living services-upgraded rooms, enhanced amenities, and specialized therapy programs-that residents buy out-of-pocket to drive higher margins and attract wealthier clients; private-pay revenue made up about 28% of Canadian same-store revenue in FY2024 (year ended Dec 31, 2024).
- Private-pay = higher-margin add-ons: premium rooms, therapies, dining
- 28% of same-store revenue FY2024 (Dec 31, 2024)
- Strategy: expand units and service tiers to boost ADR and EBITDA margins
Extendicare 2024: CAD140-170/day LTC, ParaMed CAD1.02B, 28% private-pay
Extendicare's 2024 revenue: provincial per-diem LTC subsidies ~CAD140-170/day; ParaMed home care billed ~CAD1.02B from ~24M hours; resident co-payments ~10-15% of ops revenue; management fees ~18% of service revenue (3-6% rate); private-pay 28% of same-store revenue.
| Stream | 2024 |
|---|---|
| Provincial LTC | CAD140-170/day |
| ParaMed | CAD1.02B; 24M hrs |
| Co-pays | 10-15% ops rev |
| Mgmt fees | ~18% svc rev (3-6%) |
| Private-pay | 28% same-store |
Frequently Asked Questions
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