Adaptability is one of the cornerstones of human evolution. Evolution is a slow process but adaptability, or the ability to “get by” in the short term, happens quickly and is reactionary. With the economy in a state of disarray during 2010 and 2011, the senior living industry and businesses in other areas were focused on survival. But as time heals wounds, we enter a new chapter that allows the senior housing industry to adapt to the influence of politics, economics and society. This concept of adaptation provides the foundation for long-term change versus radical change, and 2012’s senior housing trends are about adapting to the current reality and positioning for the fiscal realities and political/policy uncertainty in the future of senior housing.
1. Higher Levels of Acuity - Increased Risks and Costs
Senior living and housing providers are beginning to experience higher levels of acuity (aka sickness) for their prospective residents. This elevates the risk of entrance and subsequently the cost of providing care.
Acuity levels are rising because many seniors have delayed the entry for economic reasons, and they’ve become more accustomed to utilizing family, technology, medicine and community support to remain in their current environment.
Higher acuity levels can lead to a higher cost of care, and providers may need to raise their costs as a result of increased risk, or change their policies all together to avoid the consequences of higher acuity. This may in turn force government benefits programs into playing an even larger role in funding seniors’ care, and it’s also possible seniors may face discrimination for entry into facilities based on their acuity level.
2. Senior Housing Community Evolution - Shift in Brick and Mortar Functions
As the profile of senior housing residents change, so will the definition of types of senior care communities. The shifts in resident profiles are giving way to a migration in communities:
• Independent Living Becomes More Like Assisted Living. As more home and community based services initiatives are implemented, seniors living in apartment complexes or 55+ communities will see a greater level of a la carte services offered that will resemble more of an assisted living “feel” at a lower cost delivery as services will be unbundled.
• Current Assisted Living Facilities will function more like Skilled Nursing. Current nursing homes will be handling the “sickest” seniors in the coming years as an alternative to hospital stays. The traditional model of nursing care will migrate to assisted living communities that can have differing levels of care within those communities. As part of this trend, many assisted living communities are finding that the average age of entry for its communities is increasing as people are living with less care longer.
• Dedicated Alzheimer’s care facilities will begin to re-appear in earnest in the next 12-24 months. This trend is similar to a period in the early 2000s when many dedicated memory care communities were established. At the time, there were funding problems and the trend was somewhat ahead of its time given the number of memory care patients. However, a decade later, the supply of ALZ/dementia care communities is low while the demand is steady and increasing, regardless of the funding issues.
3. Aging in Place: Local Community Footprint Expands With Home & Community Based Services
Migratory trends for seniors are decreasing as the economic effects are more devastating than previously imagined, which leads to seniors remaining in their local communities longer. However, the definition of “local community” is changing or better yet expanding. Before the definition of local community used to be defined a 10-15 mile radius, it now encompasses an expanded area of almost 100 miles, based on supply, demand and costs.
This expanded radius is possible as home and community based services and networks are growing, predominantly in major metropolitan markets. Senior living communities and hospitals are partnering more closely to offer a full continuum of care as an extension of their brick and mortar campuses. These marketing efforts are designed to ease seniors into the system of care, starting at home and providing opportunities to expose individuals to the levels of care and communities they’ll be able to choose from when it becomes necessary. The linkages from home, clinic, rehab centers to assisted living and skilled nursing facilities will blur more as the power of the network of care becomes greater, and once in the network, individuals may find themselves to be “customers for life.”
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The Senior Living staff at The Fountains of West County understand your families care needs and are here to help. We provide senior living in St Louis, West County, Ballwin, Ellisville, Chesterfield and the surrounding areas. Call The Fountains of West County today for more information and a tour. 636-779-2600.