Tag: Occupancy

QUOTES

“The first baby boomer turns 80 this year in 2026. We’re at this fascinating point where we have huge demographic growth, but our response to that growth has been incredibly muted.” (Lisa)

“For some of the modern, competitive senior living communities, they’re full and vibrant and doing well. Recovery is probably an understatement.” (Lisa)

“I don’t want us to get lazy as an industry. Five years from now, when development starts up again, we still need to have what consumers want because it’s a different customer.” (Lisa)

“We say the boomers are different, but I’m still not sure we’re thinking differently enough. I feel like we’re having some of the same conversations we had 25 years ago.” (Lisa)

“Our world is incredibly difficult to navigate. We get stuck in our labels, and it becomes confusing for anyone trying to understand their options.” (Lisa)

“There is absolutely strong demand for what we have today. There are communities with wait lists years long. That’s real demand.” (Lisa)

“It’s not just about age and income. Every market has its own dynamics. Culture, policy, labor, affordability and consumer perceptions all shape demand in different ways.” (Lisa)

“There is ability to pay, and then there’s the perception of affordability. The psychology of affordability is very real.” (Lisa)

“Individuals who live in senior living communities live longer and have better health outcomes. But if we want healthcare partnerships, we need data to prove it.” (Lisa)

“I don’t want to just live longer. I want to live longer better. If you can demonstrate how you’ll help me stay healthier longer, that’s incredibly valuable.” (Lisa)

“As an industry, we’re very quick to send people to the emergency room. The data shows they’re much less likely to be admitted, which tells us there’s an opportunity to do better.” (Lisa)

“Embrace every opportunity you’re going to get because you’re in for a ride. Some of them will be tough, but stick with it. It’s been worth it.” (Lisa)

NOTES

Lisa McCracken is Head of Research and Analytics at the National Investment Center for Seniors Housing & Care (NIC), where she helps senior living organizations better understand the industry through market research, data analysis and strategic insights. She is widely recognized as one of the industry’s leading voices on demographics, occupancy, development and consumer trends.

The National Investment Center for Seniors Housing & Care (NIC) is a nonprofit organization that provides research, data and thought leadership to help senior housing and care providers, investors and policymakers make more informed decisions. NIC is best known for its market analytics, occupancy tracking and research on the future of aging and senior living.

In addition to overseeing NIC’s research initiatives, McCracken frequently speaks at industry conferences and collaborates with universities and healthcare organizations on studies examining senior living, value-based care, consumer behavior and market performance. Her work helps translate complex industry data into practical insights for operators, marketers and investors.

Senior living occupancy has recovered from the pandemic and, in many markets, communities are operating at some of the highest occupancy levels they’ve ever experienced. At the same time, new development has slowed dramatically, creating a growing imbalance between supply and demand.

Demographics alone won’t guarantee future success. While the aging population is creating unprecedented demand, providers still need to evolve their products, marketing and customer experience to meet the expectations of a new generation of older adults.

Many consumers find senior living confusing because of the industry’s terminology and fragmented product offerings. Simplifying how communities communicate their options could make the decision-making process easier for prospective residents and their families.

Market success depends on much more than age and income. Cultural norms, local labor markets, development policies, affordability perceptions and consumer familiarity with senior living all influence demand in different regions.

Labor availability should be considered just as carefully as resident demographics when evaluating markets or planning new development. Communities need strategies for attracting and sustaining a strong workforce alongside growing resident demand.

Senior living providers have an opportunity to strengthen partnerships with healthcare organizations by demonstrating measurable outcomes. Research shows residents often experience longer lives and better health outcomes, but communities must support those claims with meaningful data.

Industry data revealed an interesting pattern: senior living residents visit emergency rooms more frequently than their peers but are admitted to the hospital less often. McCracken believes this points to an opportunity for providers to reduce unnecessary ER visits while improving the resident experience and lowering healthcare costs.

Looking back on her career, McCracken encouraged future industry leaders to embrace every opportunity, continue learning and remain open to unexpected career paths, noting that many of the most rewarding experiences come from challenges along the way.

The following is a recap from Varsity’s Roundtable, a weekly virtual gathering of senior living marketers and leaders from across the nation. For updates about future weekly Roundtable gatherings, submit your name and email address here. 

Most older adults say they want to age in place, yet relatively few have developed a plan for how they’ll do it. That gap creates an opportunity for senior living providers to do more than market communities. It gives them a chance to become trusted guides, helping people think through one of life’s biggest decisions long before a move is on the horizon. That’s exactly what Ryan Frederick explored as a guest on Varsity’s weekly Roundtable. 

The author of Right Place, Right Time, founder of Here and leading voice on Place Planning shared how providers can engage prospects earlier, build trust through education instead of sales, and help people make more intentional decisions about where they’ll live as they age. Along the way, he explained why shifting conversations from amenities to quality of life can create stronger relationships and, ultimately, a healthier pipeline. Below are a few Fresh Perspectives from his discussion.

START THE CONVERSATION BEFORE THE MOVE IS IMMINENT

Many older adults haven’t developed a plan for where they’ll live as they age. By engaging people years before they’re ready to move, senior living providers can build trust, educate consumers and become a valued resource long before a housing decision is made.

LEAD WITH LIFE, NOT THE BUILDING

Conversations are more meaningful when they focus on a person’s health, relationships, finances and home rather than amenities and floor plans. Helping prospects reflect on how well their current situation supports the life they want often reveals needs they hadn’t recognized.

EDUCATION BUILDS TRUST BETTER THAN A SALES PITCH

Consumers are looking for objective guidance, not pressure. Providing a framework that helps people explore their options empowers them to make informed decisions and positions providers as trusted advisors rather than salespeople.

PLACE PLANNING ISN’T JUST FOR PEOPLE IN THEIR 70s

The best time to begin thinking about where you’ll live may be years before a move is necessary. Starting in your 50s or 60s gives people more flexibility to make intentional decisions that support long-term health, independence and quality of life.

SUCCESS SHOULD BE MEASURED BY RELATIONSHIPS, NOT JUST MOVE-INS

Early engagement expands the pool of people who know and trust your organization. As life circumstances change over time, those relationships naturally create more opportunities for future move-ins.

VARSITY’S FRESH PERSPECTIVE

Too often, senior living marketing begins when someone is already searching for a community. Place Planning reminds us that many of the most important decisions happen years before that first tour. Organizations that position themselves as trusted educators (not just providers) have an opportunity to build relationships much earlier in the journey.

For sales and marketing leaders, that means creating content, events and conversations that help people think about aging well, even if a move isn’t on the horizon. When the focus shifts from selling communities to helping people make better decisions, trust grows and so do future move-in opportunities.

The future of senior living may depend less on new buildings and amenities and more on whether the industry is willing to rethink culture, autonomy and the resident experience itself. In this episode of Varsity’s Roundtable Talk, Derek sits down with Steve Moran, founder and publisher of Senior Living Foresight, one of the industry’s most influential media platforms.

Known for his candid commentary and sharp observations, Moran has spent years challenging operators to rethink leadership, culture, transparency and the overall resident experience. Derek and Steve discuss why the industry may have more of a culture crisis than a staffing crisis, how operators can better empower residents and families and why storytelling may be the key to changing perceptions of senior living for future generations.

Check out the full episode here.

WHAT’S THE REAL STORY IN SENIOR LIVING RIGHT NOW THAT PEOPLE AREN’T TALKING ABOUT ENOUGH?

As you know, we have great occupancy. We’ve had the best occupancy that we have ever had in my lifetime. And that’s really, really good news. What’s interesting to me, there are two things that are really interesting to me. The first is that when I talk to operators and leaders, there seems to be a sense of apprehension or fear like, ‘This is really good, but it feels like disaster is just around the corner.’ Probably some of that’s from the COVID hangover.

The other thing is we have operators who are just crushing it at huge margins and huge occupancies, while there are still some people out there that are really, really struggling. So much of it comes down to the operator and how they run their business because it can be super successful or really, really tough.”

ARE SENIOR LIVING COMMUNITIES TRULY ALIGNED WITH WHAT TODAY’S OLDER ADULT WANTS?

There’s this widespread belief that baby boomers are going to want something very different. I think there are a few things, but mostly as we get older, we’re going to want the same things people have always wanted.

Part of the biggest problem is that if we’re honest about the industry, senior living is still the last resort. I choose senior living when I can no longer live at home. That might mean I don’t want to take care of my yard anymore, I don’t want to cook or grocery shop anymore or it might mean I have real care needs. I’m not sure the industry is fully aligned with what people actually want because too often the focus is on providing the least amount of service at the lowest cost to maximize margins.

WHAT ARE OPERATORS DOING WELL RIGHT NOW — AND WHAT ARE THEY STILL GETTING WRONG?

I think operators are getting dining pretty right. They understand that dining is one place they touch residents’ lives three times a day. I think transportation is improving too and communities are building better physical spaces.

But I think they’re still not giving residents enough control over their own lives. I heard from a resident recently who said they were thrilled because residents had finally won the ability to choose what channel played on the TV behind the bar four days a week. And I’m thinking, this shouldn’t even be a battle. Those are the kinds of things I think we’re still getting wrong.

IS THE WORKFORCE CRISIS REALLY A STAFFING PROBLEM?

I don’t think we have a real staffing crisis. I think we have a culture crisis.

As long as there are people willing to work at McDonald’s, Taco Bell and Starbucks, we don’t have a staffing shortage. We have organizations that haven’t created cultures where people feel valued, appreciated and connected to purpose.

When you create a great work environment where people feel like they’re changing lives and love coming to work every day, they tell their friends about it. Goodwin House gets something like 900 applications a month. They hire the best people and the rest go elsewhere. That tells me the problem isn’t a lack of workers. It’s culture.

During Thursday’s roundtable, retirement communities around the country shared sales and marketing strategies that are working during COVID-19. From virtual events to smart home communications, tech is being tapped frequently to reach and attract residents.

Join the next sales and marketing roundtable on July 23!

Please join our next roundtable discussion on Thursday, July 23, at noon ET. We will have a speaker from Morrison Living sharing tips to create safer environments.

For log-in information, please contact DDunham@VarsityBranding.com.

Recently, a colleague forwarded an email to me that arrived in his inbox from the Harvard Business Review. The headline read, “Today’s Tip: Pressuring Your Sales Team Can Be Counterproductive.”

Wow, did that statement ever resonate with me. My colleague’s accompanying note said, “Doesn’t that suit your sales philosophy to a T, Jackie?” And he was 100 percent right.

In my long-standing work training and coaching sales staff at senior living communities, I have absolutely found that turning up the pressure to get team members to “make the numbers” doesn’t help, and in fact, is often seriously detrimental. As the Harvard Business Review article went on to explain, it’s not about closing sales at any cost; it’s about training and coaching salespeople to sell more effectively, not harder. Get the process right, and the sales flow from there.

Selling Isn’t Like the Movies

Perhaps it’s movies about high-pressure sales environments — “Jerry Maguire,” “Glengarry Glen Ross,” “Boiler Room” and the list goes on — that add to the impression that the most effective way to make salespeople reach sales goals is to crank up the heat and dangle money in front of them. But I’ve found that pressuring people and setting impossible goals for them doesn’t work well. In fact, pressure adds stress and anxiety, which hinders productivity, and setting unrealistic goals, no matter what the reward, demotivates people because they feel that success is unattainable.

Another unfortunate side effect of pressuring your salespeople is that they tend to turn around and pressure prospects, and when you become aggressive and push prospects to make a decision, they push back. In a category where the sales funnel to a decision can require an average of 24 touches and potentially two years to reach that decision, it’s much more important to build a relationship of trust with your prospects and lead them through the sales journey than to strong-arm them.

Same Team

When I train and coach sales staff, I put myself on their team. I work alongside them, get to know their selling style and where they might need additional training and support. Do they need help in selling the appointment over the phone? Or are their conversion rates of getting the appointments good, but their closing rate on getting deposits needs to improve?

I find out what I need to do to support salespeople in reaching their goals and being successful. I also help them understand that selling, especially in high-dollar and highly emotional sales, is about communicating and connecting with that unique individual sitting across from you. How I do that, and how I train others to do that, is by asking the right questions and really listening to learn what the person values; what his or her fears, hopes and dreams are; and how he or she makes decisions. When people feel understood, acknowledged and accepted, rapport is built, and they will follow you. This goes for salespeople as well as prospects.

As the clock ticks down to 2020, we look back on another exciting year for the Varsity blog! Here’s a countdown of our five most popular posts for 2019. It’s a grab bag of hot-button topics, from groundbreaking wellness ideas to intergenerational brainstorms.

5. 18-year-old Jumps Into Life at Senior Community

In this interview with out-of-the-box thinker Rosemary Ramsey, she reveals her inspiration for The Victory Lap, a one-of-a-kind program that pairs youth aging out of foster care with senior communities. Read about an intergenerational program that could change senior living.

4. Overheard at LeadingAge TN: What if…

Our VP of Client Services Derek Dunham takes us inside the “what-if” moments of the 2019 LeadingAge TN Annual Meeting & EXPO. Explore “what-if” moments.

3. Disruption in Senior living — Opportunity or Threat?

From shrinking staff to the growing middle market, Derek Dunham disrupts our world with the highlights of the 2019 PAHSA conference. Get disrupted.   

2. 10 Leadership Secrets From LeadingAge PA

This series chronicles the year-long journey of LeadingAge PA’s Fellows in Leadership program. In this post, Brian Mailliard and Sakkara El share what they’ve learned at the halfway mark of their adventure. Learn the secrets of leading well.

1. When It Comes to Wellness, Nothing’s off the Table

Our most-read post of the year was a fascinating conversation between Becky Anhorn, the inspirational wellness director at Meadowood Senior Living, and Rob Smith, Varsity’s creative director. Read about a groundbreaking approach to wellness.

That’s our countdown of top posts for 2019! Stay tuned for more fresh content in 2020, and please contact us if you’d like to do a guest post or be interviewed for an upcoming blog.

Today I’m talking with Maura Z. Richards, Vice President of Business Development at Wohlsen Construction, a top-ranked construction company specializing in senior living. Prior to her current position, Maura spent more than 15 years working in senior living as a provider and consultant, giving her unique insights into finding solutions that are economically and operationally viable to increase occupancy.

Hello, Maura! Thank you for talking to me today! What do you view as the biggest challenge facing older adults in the middle market?

The affordability of senior living communities. We have not completely solved the middle market product challenges to serve the number of seniors that will need to move to — specifically  — an assisted living or memory care community. Seniors will stay home as long as possible — which more times than not means too late — due to the fact that they do not have enough money to afford a senior living community.

What are some common misconceptions about the middle market?

People get confused when you talk about the middle market. They think middle market housing is affordable, but it’s really not. It’s essentially less costly than a traditional senior community, but it’s still expensive. The middle market community is much smaller in size and has more of a model of two bedrooms sharing a kitchen and bath. This type of living arrangement is not one that a prospect seeks until there is a need.  Having been in senior living for many years, I can share that this is not what you want to hear when a prospect comes through the door. You want prospects to move to a community when they are independent  and not making a need-based decision so that they are content with the move and will take full advantage of the lifestyle a senior living community offers.

What are the biggest barriers to building for the middle market?

Building costs and land cost — with both being high, the financial model is hard to pencil out to be affordable for the middle market. Developers look for sites that are outside urban areas to keep land costs down. However, to make the community pencil out, there typically is less amenity space and an apartment layout in which two individual prospects share a kitchen and bathroom.

What is the biggest competition for middle market housing?

People’s own homes and technology. If people can stay in their home and install smart home technology for less than it costs to move to a senior living community, then they will always choose their own home. They will then wait until there is a need to move to a community. The struggle from a proforma perspective is that the higher the acuity level of the residents, the more staffing the community needs.  With that comes higher entrance fees and monthly fees.

Since studies have found that, by 2029, 54 percent of older adults will not be able to afford private pay senior living, how will the industry as a whole need to change? 

The industry will need to look to partner with other organizations to create a mixed-use development that taps several housing options to share in the cost of the amenity space to bring down the cost of senior living.

What types of organizations would be good partners for senior living?

Maybe there is an option for senior living to partner with intergenerational housing options to form a mixed-use development. For example, many universities need additional student housing yet are faced with high construction costs just like senior living. There could be an opportunity for developers to look at student housing and senior housing to share in amenity and community space to lower the costs for both. This would also allow both populations to take advantage of the educational opportunities.

Do you have any other creative ideas that could benefit the middle market?

Another idea I have thought about from a socialization standpoint is to build senior centers on or next to local public schools to leverage intergenerational opportunities and programs. High schools are being renovated all over the country and facing issues of getting funding passed. Why not look at combining the two? The more our younger population interacts with and understands senior needs, the more we will see solutions to take care of older adults in the future. To get youths to understand seniors, you have to put them together.

At the 2019 LeadingAge Tennessee Conference and EXPO, an entire audience of people sat together quietly, eyes closed, remembering how they felt on the first day of school.

After several minutes, the presenter had them open their eyes and share their feelings. Emotions ranged from fear and excitement to nervousness and anxiety.

Why did presenter Melissa Ward, PT, MS, RAC-CT, Vice President of Clinical and Regulatory Affairs at Functional Pathways, have the audience do this exercise? She wanted to evoke the emotions students and parents feel on the first day of school, which is very similar to the way residents and their loved ones may feel on their first day in a retirement community.

Trying to find your way around an unfamiliar place can be a tremendous adjustment, and the move can be just as stressful for families leaving their loved ones. But there are ways to help the transition go more smoothly, like the techniques described in this recent article in McKnight’s Senior Living. And now, new residents and their families have another powerful resource to draw on: a unique program developed by the Functional Pathways team.

According to Ward, the Transition Concierge Program began as a “what-if” idea about two years ago. “A client community was  struggling with having residents successfully age in place,” Ward said. “New residents came in and weren’t engaged in community life. They weren’t taking advantage of everything available on the campus. This issue was leading to increased risk for falls and residents requiring higher levels of care.”

That’s when the Functional Pathways Team, led by Beth Reigart, Clinical Outcomes Specialist, decided to create the new Transition Concierge Program. This collaborative approach brings together a powerful arsenal of tools, including social services, nursing, therapy, activities, wellness, resident programming, resident support groups, resources for the family, on-campus physician services and more. By making the transition smoother, the program helps residents successfully age in place.

How the Transition Concierge Program Works

When the resident moves in, a Navigation Team conducts in-depth standardized assessments. Then, an Interdisciplinary Team creates a plan of individualized support. Every element is geared toward giving the individual input into his or her own life.

Here are a couple of examples: If a resident has breathing problems, he or she may need a plan that addresses limitations in endurance to make it possible to get to the bistro. If a resident has low vision, apartment modifications or a plan to get and read mail may be needed. Every resident adjusts to resident living at a different rate, according to Ward. The program was designed to provide services and support that fit each individual’s unique needs.

More Than Just a Real Estate Transaction

The Functional Pathways team believes that moving into an independent living community should be “more than just a real estate transaction.” It’s fostering a true continuum of care through this innovative service.

New residents may still face those first-day-of-school jitters. Fortunately, this innovative collaboration helps ease the transition so they can find passion and purpose in their new environment.

How is your community helping resident transitions go more smoothly? Let me know at DDunham@VarsityBranding.com. I’d love to feature your strategies in an upcoming blog post.

A solution to occupancy challenges can come from someplace you never expected, like foster care.

When you think about it, it’s a natural combination: Youth aging out of foster care need a job and a place to stay. Senior communities have empty housing, job vacancies and caring mentors. But no one has thought to bring the two together — until now.

Rosemary Ramsey, the director of The Victory Lap, got this unique idea while she was employed at Brookdale Senior Living and volunteering with Monroe Harding, a nonprofit that helps foster kids that are aging out of the system.

How The Victory Lap Began 

“I was sitting at my desk at Brookdale, thinking about occupancy challenges. At the same time, I was volunteering with kids aging out of foster care. I saw their issues of finding employment, housing and connection to caring adults,” Ramsey said. “It kind of hit me that my worlds could collide in a productive way.”

“The truth of the matter is, a lot of these kids never get adopted,” she went on. “Twenty-two thousand kids age out every year in America. At least 30 percent of them will experience homelessness — and every one that bottoms out costs tax payers over a million dollars.”

In addition to occupancy challenges at communities, there’s also a nationwide labor shortage. “There are tons of entry-level opportunities in senior housing,” said Ramsey.

She also feels that great relationships can develop between residents and youths aging out of foster care. “There are three things older people universally love,” she said. “Mail, ice cream and young people.”

Cannonballing Into Community Life

John, the first participant, age 18, liked the idea right away. “It was an opportunity for him to have his own space. In the group home, you have to share a kitchen and a bathroom,” Ramsey said. “He also liked the idea of being around seniors because he was close with his grandparents. And he loved the pool.” That’s why, to celebrate John’s move-in, the local TV station shot a video of him cannonballing into the community’s pool. Watch it here.

John will attend college this fall while working part time and living at East Ridge Residence, an independent living community. He’ll receive oversight and counseling from a local nonprofit: Partnership for Families, Children and Adults.

Now that her program is up and running, Ramsey is looking forward to future placements. “This is not just a touchy, feel-good opportunity. It has real, practical economic benefits,” she stressed. “Retirement communities can not only fulfill their need for employees, and contribute with some living spaces not in use, but they can actually receive a stipend from the state for helping provide housing.”

In senior living, she said, “intergenerational” is a popular buzzword, referring to initiatives like Girl Scouts coming in to read stories, but Ramsey thinks that it can be taken a lot further. “I think it’s a marketing advantage — a place where older people and younger people live together,” she said.

Expanding the Program

Eventually, Ramsey would like to expand the program to populations beyond the foster demographic, such as veterans and people who are developmentally disabled. “Our industry is sitting on 100,000 vacancies. Let’s try to make a dent in our occupancy challenges and think outside the box,” she said. “These people can add life to the community, and residents have life experience and wisdom to impart.”

Right now, Ramsey is excited that the first participant has moved in. “John is doing great! He describes life in the retirement community as ‘way better’ than the group home,” she said. “He  has more freedom to come and go as he chooses. His job in the dining room is going well, and he has his own section now, so he is proud of that! He’s enjoying playing Bingo and cards, and the residents are teaching him new games.”

Has your community found unique solutions to occupancy challenges? Let me know at DDunham@VarsityBranding.com.

Even after three days in the steamy summer heat, my excitement about everything I learned at the LeadingAge Tennessee 2019 Annual Meeting & EXPO is just beginning to heat up. The theme was: “What if we helped people find passion and purpose?” The individuals I connected with at the show are doing that in amazing ways. They’re bringing generations together, leveraging strategies from other industries and approaching their challenges with a fresh perspective.

Without further ado, I’m excited to report back to you my top five “what-ifs” at the show:

1. What if we could integrate former foster youth into senior living communities?

While I was walking the floor, I spoke with Rosemary Ramsey, founder of The Victory Lap, an organization committed to matching youth, 18 to 21, who have aged out of the foster program, with open apartments at senior living communities. The community would be paid $900 per month (funded by the foster program in Tennessee) and would be asked to provide a job for the individual (at least 10 hours per week). The program is intended to give former foster kids a boost — with stable housing, employment opportunities and support from caring older adults — while meeting workforce challenges, filling otherwise vacant units and fostering intergenerational friendships. Look for an interview with Rosemary in a future blog post!

2. What if we could bring the principles of doula care to hospice?

A session on creating a doula program for hospice created some serious conference buzz. The program follows the principles of birthing doulas to help guide the individual and family/loved ones through the dying process.

3. What if we could find and retain top talent?

One of my favorite sessions, led by Matt Thornhill, stressed the need for transparency and inclusion when hiring. It was all about finding and retaining top talent. One example Matt referenced was the innovative 30/40 program by LifeSpire of Virginia in which certified nursing assistants are paid for 40 hours but are only required to work 30.

4. What if new residents could feel at home more easily?

I heard several people talking about a unique continuum concierge program discussed by Melissa Ward, vice president of clinical & regulatory affairs at Functional Pathways. The program promotes successful transitions and helps people stay in their current levels of care. Its tools include new resident orientations, resident-driven support groups, physician services, collaboration across the care continuum and more. Stay tuned for a future blog post about this innovative program.

5. What if we looked beyond a prospect’s age and income?

Last but not least, I’d be remiss if I didn’t mention our session with co-presenter Robbie Voloshin of United Methodist Communities (UMC). Robbie celebrated her birthday that day! The talk covered an in-depth research study on which we had partnered with UMC. In short, the study shows how going beyond superficial demographics to interests and values can help organizations connect more deeply with the right prospects. Discussion centered around the core aspects of the study — the values statements and how they were ranked.

Have you had any what-if moments of your own? If so, drop me an email at DDunham@VarsityBranding.com. I’d love to hear about them.