Here are some unexpected statistics describing the assisted living industry.
Despite the investment profitability in senior housing, and despite an ardent focus on the incredible hospitality offered – luxurious accommodations and surroundings, fine dining, architectural design awards, and much more – the following facts about assisted living are also true:
In only 10 years (2000 – 2010),
- LOS (length of stay) has plummeted from 36 months to 22 months.
- Annual resident turnover has skyrocketed from 41% to 47% (and to 54% in 2013)!
- The leading reason for resident turnover is the declining resident health, and this has climbed sharply from 72% of those residents who leave to 92%.
The opportunity is clear – an Integrated Care model of assisted living is needed to advance the paradigm of this incredible and essential industry. A model that encourages equal participation of real estate, hospitality, and healthcare. And the ROI is clear – the potential to save thousands of dollars annually by reducing resident turnover via the stabilization of resident health, being included in health referral networks, and market differentiation to attract new residents.
Healthcare’s contribution must go far beyond the mere providing of ADLs, for the figures above have occurred despite the providing of ADLs. It must include a deeper understanding of AL resident health which will lead to improved health management.
An Integrated Care model begins with measuring resident health, for “what isn’t measured can’t be managed.” This will lead to insights that will optimize resident health, and that translates into decreased resident turnover, longer lengths of stay, and improved profitability.
Integrated care, a model in which healthcare works equally and cooperatively with real estate and hospitality, will preserve the social model of assisted living while providing insights to optimize its management. These are insights that will inspire data driven solutions and address the threat of government regulation by proactively responding to the most prevalent and topical health issues, such as the use of anti-psychotics, the care of dementia, polypharmacy, and avoidable hospital re-admissions.
And Integrated Care uniquely provides an opportunity for market differentiation. The question is: “Who will lead?”
Dr. Steven Fuller is a triple board certified physician/entrepreneur who develops programs in support of an Integrated Care model of senior housing. This model includes 3 equal, interactive, and mutually supportive team members: real estate, hospitality, and healthcare. To reach Dr. Fuller, e-mail:
st**********@il*******************.com
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