Our population is continually aging, increasing the number of potential persons who could be served. Senior living organizations can increase revenue by reaching a larger group of the aging population through diversifying their services. For example, by offering multiple levels of care, an organization can attract and serve multiple care needs of seniors as they age. Facilities that offer independent living, assisted living, and skilled nursing will likely see their residents progress through the entire continuum of care. Seniors may be more inclined to move into these communities for the peace of mind of not having to leave when they need more care.
Organizations that have historically only provided independent living or skilled nursing are looking to expand into assisted living or assisted living memory care to offer more services to those in their community and provide more of a continuum of care. Similarly, senior living organizations are starting new service lines in home health and hospice services to diversify offerings to their own residents and patients. These service offerings are more appealing to residents, patients, and their families as they can receive the services they need from the same organization they are familiar with. Residents won’t have to worry about moving outside of their community when the next level of care or additional services are needed.
Another benefit that senior living organizations see when offering diversified services and levels of care is that their payor mix may have more private-pay residents/patients, which usually result in higher margins than government-based pay sources. Private-pay and some long-term care insurance programs are a more stable and reliable pay source than government-based programs. Historically when the economy is experiencing a slowdown or recession, federal and state appropriations may be cut to balance budgets, which puts senior living organizations at risk. Diversifying services also offers revenue sources that aren’t tied to census, which as we have seen recently can be beneficial.
There are other nontraditional opportunities to diversify revenue services in senior living organizations by renting space to a pharmacy to dispense medications to their residents and employees. Similarly, organizations could rent space to a physician, physician assistant, or nurse practitioner to see residents and employees. While these rental agreements may only provide limited revenue, the services attract more residents and employees as well as increase the health and wellness of residents. In a time when workforce issues are the leading issues senior living providers face, offering on-site child care is an alternative revenue source and employee recruiting tool.
Other more progressive forms of diversification include offering life care at home services to the broader community, which can increase potential residents for the organization into the future. Partnering with an insurance organization to offer institutional special needs plans (INSP) to your residents could be a funding source for additional services, such as a nurse practitioner, and provide a capitated payment for services already offered by the organization.
Helping residents navigate modern mobile ride share applications, which are senior friendly, may alleviate the need for employed drivers and still provide needed transportation services to residents and employees.
Overall, value is added to residents and patients in the senior living organization and, in turn, the community is more appealing when more services are offered, helping make it even easier to sell the organization.
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