Copy of CEO & COO Updates Final

Summary

Riverwoods’ CEO and COO held an open question-and-answer session with residents, followed by a discussion of the organization’s priorities and its efforts to strengthen community culture.

Health-center project and court case

Residents asked what would happen to the project while the Supreme Court is not functioning normally. The leaders said the abutters’ submissions were due in mid-October, with a possible 15-day extension. Riverwoods would then have 30 days to respond.

They expect the matter to be fully submitted by December, but the court may need to find judges elsewhere. It is not yet clear whether the case will be decided on written submissions or require oral arguments. Their attorney still expects a ruling in spring 2027.

Office rental and pool repairs

The leaders said the Durham office space costs about the same as—or slightly less than—the prior rental arrangement and provides shared meeting space. They said transparency does not mean every detail must be public.

Regarding the Woods pool, the current closure is due to a failed piece of equipment unrelated to the recent refurbishment. A replacement part is on order.

Service concerns and audio-visual problems

A resident raised concerns about lengthy audio-equipment repairs, reduced dining availability, and inconsistent front-desk coverage. The leaders acknowledged that the AV project was mishandled, including the selection of an unsuitable vendor and resulting delays. They said the Riverwoods Group paid for rework rather than passing those costs on to residents.

Dining and front-desk staffing are handled locally. Residents were encouraged to raise ongoing concerns with their council and local leadership.

Strategic priorities and support for older adults beyond the campuses

The leaders described three broad areas of future work:

• Developing communities
• Finding ways to support older adults who do not live in Riverwoods communities
• Using philanthropy to broaden the organization’s impact

A new community within five years is a possibility, though it has not been settled. Riverwoods is still exploring how to offer guidance and connection to people outside its campuses. Leaders said they are not currently planning a “CCRC at home” insurance model or a volunteer village model, citing financial risks or limited reach.

The Seacoast Dementia Hub was presented as an example of a community idea that Riverwoods helped develop into a program.

Three-year plan

The current strategic action plan for existing communities focuses on people, innovation, and stewardship. Work includes staff retention, communication, financial stewardship, refinancing, and land-management planning.

Staffing and retention

Riverwoods reported a 23.8% employee turnover rate for fiscal year 2026, compared with an industry average of 34%. The target for the coming year is 20.8%, excluding per-diem workers.

Leaders acknowledged particular hiring pressure in dining. They said the organization reviews pay against the market, analyzes causes of turnover, improves onboarding and training, and adjusts recruitment efforts. Staffing is also a major consideration in any future expansion.

Group finances, fees, and reserves

In response to questions about roughly $12 million transferred from the Exeter community to the group since 2021–22, leaders said group funds support centralized costs, self-insurance claims, and project-development expenses. About $4.5 million has been spent so far on the Exeter health-center project. Development costs for Durham were advanced and are repaid once financing is secured.

The group’s reserves also help offset costs that would otherwise be included in residents’ monthly fees. Leaders distinguished monthly management, IT, and direct-allocation fees from the system development fee, which is funded from a portion of entrance fees.

They described Exeter’s $112 million as reserves, not an endowment. The funds are managed with a professional investment advisor and a board investment committee. Investment income and some capital gains help offset operating costs. Leaders offered an approximate long-term return in the six-percent range, with the caveat that the figure should be confirmed.

Growth and project affordability

Leaders said Riverwoods does not need immediate growth to survive, but argued that a larger system can spread overhead and reduce risk. They described their approach as “smart growth,” not growth for its own sake, and said staffing—not resident demand—is the main constraint. Future expansion would need to be far enough from existing communities to avoid competing for the same workforce.

For the health center, leaders said interest rates are a significant uncertainty and the current expectation is to break ground around 2028. A guaranteed maximum price contract would limit construction-cost increases after work begins. They maintained that the project should not materially affect monthly service fees, while acknowledging that delays and changing costs could create challenges.

Use of AI and technology

Riverwoods has trained staff to use AI tools responsibly for tasks such as drafting, reorganizing presentations, and retrieving historical documents. Examples included an internal “Pennybot,” built from an employee’s decades of files, and a tool to help facilities staff prepare comparable requests for proposals.

Leaders said the goal is to reduce administrative work and free staff for personal interactions. They are also exploring autonomous vehicles, though they estimated that campus use may still be about five years away.

Transparency and community culture

Residents said board minutes and explanations of decisions can feel too limited. Leaders responded that they aim to explain the reasoning behind decisions, while noting that different audiences receive different levels of detail.

They also described a board-led effort to strengthen a “citizenship culture”: encouraging residents and staff to see themselves as part of a shared community, speak up, help one another, and participate. They stressed that this does not mean residents decide every operational matter or receive confidential information.

Each community will shape its own approach, with ongoing discussion intended to improve trust and communication.

The leaders said they plan to return quarterly, likely continuing with resident questions first and sometimes bringing other Riverwoods executives to explain their work.

Presenters and contributors

• Justine — CEO; last name was not stated in the subtitles
• Kim — COO; last name was not stated in the subtitles
• Kathleen LeFave — Director of Community Life at the Woods; addressed the pool closure

Residents who asked questions or spoke: May Young Claus, Norine (last name not stated), Lee Hammond, Ellen Kingsbury, Linda (last name not stated), Dave H. (from the Boulders), Pete (last name not stated), Louise Hersburg, Dick Striford, Iva Freeman, Beth Fitz Simmons, and Kate Peterson.