Author: Varsity Team

The first impressions of health information technology (HIT) – including electronic health records (EHR) and electronic medical records (EMR) – was that it held great promise for improving healthcare quality and safety, along with reducing the costs of providing care in the post-acute or long-term care setting.

The last time we covered HIT, and specifically EHR in the senior living industry, several multi-campus communities had already made the switch into the paperless realm.

Some preliminary data from LeadingAge and Ziegler‘s jointly commissioned LZ 100 survey shows that 79% of the largest LeadingAge members currently have an EHR system in place and plan to increase their investment over the next 12 months.

Note that we said largest.

Despite the advantages of EHR adoption for the long term care facilities using them and payers, the systems don’t come cheap, and costs vary depending on the type of system being deployed.

The study noted that, under a Software as a Service (SaaS), where a provider contracts directly with an EHR/EMR vendor for an annual service charge, implementing the technology could cost nearly $260,000 for a 25-bed facility over a period of five years. A third party-hosted solution would cost the same facility $254,279, while an in-house solution would ring in at more than $355,000 for the same five-year period.

Add to this the fact that EMR and point of care solutions can place a strain on a community’s current IT infrastructure, and require new measures to be put in place for security and access.

The benefits of going “paperless” are well-documented. EMR systems have a direct effect on positive outcomes, staff efficiency, the virtual elimination of medication errors, increased face time with residents and family members, and yes, cost savings.

As assisted living and skilled providers begin partnering with hospitals and other care providers in Accountable Care Organizations (ACOs), it will become more important to be able to move data seamlessly between those organizations, as well as provide hard data showing that they’re providing quality care.

MARKETING INSIGHT: For smaller facilities, adopting an EHR system remains cost prohibitive, and the likelihood of widespread adoption in the next three to five years remains low. Clearly, policy initiatives, programs and financing options must be put into place.

Those who are on the fence about such systems should consider the following:

• Being seen as thought leaders with state-of-the-art technology;
• The federal mandate requiring all healthcare facilities to have electronic health records;
• The ability to align with an ACO or become a preferred destination for post-acute therapy;
• Marked improvements in quality, efficiency and effectiveness of care;
• Improvements to the quality of documentation; and
• Reduced the paperwork for employees.

Last year, automakers were reporting that “older” consumers were making up the lion’s share of new car buyers. Apparently, they didn’t believe their own numbers, as a new study shows that that same cohort is still buying more new cars than the 35- to 44-year-old age group, who were most likely to buy four years ago.

So who’s responsible? You guessed it. The Boomers who refuse to age, and apparently, refuse to give up their car keys. According to a new study by the University of Michigan’s Transportation Research Institute, the 55 to 64-year-old age group, or older Boomers, has now become the demographic most likely to buy a new car.

The study found that those consumers had the highest rate of vehicle purchases in 2011, while the youngest age groups had the lowest rate. Even consumers age 75 and above bought cars at a higher rate than 25 to 34-year-olds and 18 to 24-year-olds.

Industry insiders believe that one of the main reasons behind the numbers is that people are staying in the workforce longer, and thus remaining in the automotive market longer as well. Today, most Boomers live in the suburbs and expect to age in place in their homes, or are stuck in larger homes whose values have fallen. Driving is viewed as the key to independence and even self-worth. Given their propensity to remain independent, the next 20 years will see the number of U.S. drivers over 70 triple.

From a marketing perspective, auto manufacturers have been throwing good money after bad, spending billions to try to reach Generation Y and younger consumers – who are not driving as frequently or in as great numbers as the Boomers.

“You shouldn’t be chasing the younger people, you should be looking at the older people,” Michael Sivak, author of the study, told Bloomberg. “Boomers are trying to extend their youth as long as they can, both in terms of taking care of their bodies and in their expenditures.”

Sivak notes that automakers are having to rethink marketing to older drivers, who are no longer content to buy a large luxury sedan and drive it for 20 years. A good point is, however, that Boomers are not their parents’ generation. They expect to continue working and driving long into their later years. The challenge here is for automakers to develop models that cater to the specific needs of this aging population, without alienating them or younger cohorts.

MARKETING INSIGHT: The aging of one of the country’s largest generations will have a lasting impact on the automotive market.

There’s opportunity here for automakers to roll out more compact and affordable models that specifically meet Boomer needs. As Boomers age they increase the amount of participation in daily sport and leisure activities. With more Boomers working longer and having larger household sizes than previous generations, fuel efficient, compact vehicles, which maximize passenger and cargo capacity, may be an attractive purchase for this still relatively wealthy cohort.

For the senior living sector, it could mean providing more facilities to accommodate automobiles for those who continue to work and remain behind the wheel. In our research, Boomers looking at current CCRCs were turned off by the dearth of resident parking, and the absence of covered parking.

For local and state municipalities, this could mean investing in public transit and new roadways, and promoting the building of compact, walkable and mixed-use communities that minimize the need to drive as their residents age.

Product manufacturers, electronics retailers, and senior service providers continue to miss the mark when it comes to tapping an audience with spending power and an increasing interest in crossing the Great Digital Divide. But that’s slowly changing, thanks to a new generation subtly driving the industry for themselves, their families and professional caregivers, according to Varsity’s new research white paper.

The Great Disconnect: What Technology Marketers Need to Know About Reaching Today’s Mature Market Consumer, is based on focus group findings of adults age 65-95, shop-alongs at major retailers, and observations gleaned while staying in a retirement community for one month during Project Looking Glass II.

The study examines how new generations of Boomers and seniors are using technology and making purchase decisions based on personal preferences, physical and logistical convenience and health-related concerns. It also identifies issues encountered while shopping the category, changing attitudes, and the factors influencing purchase decisions. Some of the top-level findings:

• Today’s “Transitionals” — a demographic mix of Depression-era Silent Generation and early Boomers — are the driving force when it comes to product usage and expectations that were formerly the realm of younger consumers.
• More advances have to be widely implemented in the senior living industry and in light of the coming generations’ familiarity with technology.
• Children and grandchildren remain top influencers, both in terms of product education, recommendations, purchases and even repairs.
• Companies that facilitate aging in place will play an increasingly important role.
• Internet browsing is now a leisure activity, and many are influenced by mobile content.
• Brick-and-mortar retailers should consider training staff to be patient with older, apprehensive consumers, or using peer “brand ambassadors.”

“Technology has changed the fabric of our lives, but many innovations found in the broader market have yet to take hold in the mature market,” said John Bassounas, Varsity director of client services. “But that’s going to have to change, either by choice or by pressure. This study will confirm many industry observations, but will also offer new insights that can serve as the basis for planning for markets ranging from retirement housing to retail.”

You can receive a free copy of the report here. Members of the Varsity team are available to provide in-depth presentations of the report, either via webinar or in person. To schedule a presentation or for additional information, contact Matt Bekelja at 717-652-1277 or mbekelja@varsitybranding.com.