Tag: Occupancy

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.

At the recent LeadingAge CA conference, the buzz was around the changes in how mature consumers are using their homes.  Those changes also mean different expectations for their new residences. Here are three design elements your community must have to attract Boomers:

1. Space that works

More residents are continuing their careers. Therefore, they desire more usable work and office space. It’s no longer enough to provide the corner of a room for computers. These days, prospective residents are looking for more formal office space and built-in furnishings to support their ongoing careers.

2. Indoor-outdoor living

Common space for socialization is no longer sufficient. Prospective residents are looking for open floor plans and spaces that transition to outdoor areas. so they can entertain groups of friends and relatives.  A place to party in the privacy of their own space is a common request.

3. A home with a heart

Along with higher-grade finishes, Boomers want open-concept, larger kitchens and kitchen islands. An open layout can replicate what happens in their own homes, where everyone congregates in the kitchen to socialize.

Architects and marketers are sharing notes in an effort to create more pleasing environments for a younger set of prospects. Although the shift toward younger residents is slow at best, the mindset and expectations of prospects — regardless of age — feels younger.

Earlier this week, my entire world was disrupted. I flew to Pittsburgh for the Facing Disruption, Forging Direction conference, hosted by the Presbyterian Association of Homes and Services for the Aging (PAHSA). I participated in discussions about the major disruptors facing our field and came away viewing disruption as a positive force to be embraced. As I look back on the event, I can identify five major disruptions — and new directions that can transform them into opportunities. I wanted to share them with all of you who may not have been able to attend the conference. 

1. Disruption: tighter margins, leaner budgets
Many communities and systems are considering strategies to combat the changing needs of the mature market and increasing competition. This is evident in how communities are repositioning, contract types are changing and affiliations are continuing to develop.

Direction: Collaboration can boost financial strength. At the conference, Presbyterian Senior Living and Westminster Communities of Florida announced their intention to affiliate. Together, they will be the fifth-largest senior living organization in the country.

2. Disruption: a rapidly growing middle market
Forty-five percent of Boomers have no savings toward retirement, which means that most will not be able to afford the typical senior living community.*

 Direction: HumanGood is taking what it’s learned through its affordable housing communities to provide an innovative service to the middle market. We learned about how the brand developed Plaza Roberto Maestas in Seattle, incorporating street art that reflects the local neighborhood; a day care center for neighborhood children; local retail on the first level; and a plaza in the center of the complex that draws a variety of food trucks each day, attracting visitors from the greater community.

3. Disruption: a skyrocketing incidence of dementia
Caregivers already provide 18.5 billion hours of care per year at a cost of $234 billion, and the number of people with Alzheimer’s will more than double by 2050.**

Direction: Presbyterian SeniorCare in the Pittsburgh market has launched its Dementia360 program, which in the words of the organization “pioneers partnerships and collaborations.” The organization has developed a Dementia Care Center of Excellence, with educational programs, residential services, research and population health initiatives. This, along with its comprehensive care management expertise, provided the resources necessary to launch Dementia360, which is a series of tools to support both the caregiver and the person living with dementia.

4. Disruption: a dearth of qualified staff in senior living
The number of 16–24-year-olds in the workforce is expected to decline by 2.8 million between 2014 and 2024, which means that senior living communities could face major labor shortages.***

Direction: Presbyterian SeniorCare and Redstone, both of Pittsburgh,  shared two different models to bring youth in through education, volunteerism and internships. These types of programs introduce high school students to the benefits of a career in senior living, expanding the potential workforce at a grassroots level.

5. Disruption: unique partnerships providing exponential value

Direction: Twin Cities-based Presbyterian Homes & Services is pioneering relationships with payers and primary care/navigation to create a unique model to contain costs and — more importantly — provide the best-quality care to its residents.

I genuinely enjoyed my time at the conference and salute the leaders who came together to openly share their solutions for a common cause. And every day, every session was guided by this passage from Scripture:

“For surely I know the plans I have for you,” says the Lord, “plans for your welfare and not for harm, to give you a future with hope.” – Jeremiah 29:11

I encourage everyone to address disruption head on by taking new directions that will move our field forward.

*Insured Retirement Institute
**Alzheimer’s Foundation
***Argentum Senior Living Workforce Trends 2018

If you perform a Google search for articles relating to the positive effects of pet ownership as we age, you’ll be served up just under 3.4 million results. Obviously, we have significant evidence that pet ownership can have an impact on our health and well-being, no matter how old we are. Yet, for a variety of reasons, many aging services communities don’t allow pets of any sort, or place severe restrictions on pet ownership. This made us curious — what’s the impact of not allowing pets on a community’s marketing efforts and occupancy?

During our Google search, we came across an article from pawsperouspets.com titled, “Retiring with Your Pet — Are Pets Allowed in Retirement Communities?” In the article, the author lists several hoops that retiring pet owners may face when trying to move to a community. Restrictions on the size of the pet and its age are fairly common; communities usually prefer smaller pets that are a bit older. Also, most communities require an additional financial deposit. But what really caught our eye was requiring a social screening of pets, including trial periods.

Trial periods and social screenings are a great idea. By having all current residents meet the pet, and having a professional screen the animal, you are creating a policy that should help to weed out potential issues. But what kind of marketing message is this sending? We think it’s both positive and negative.

On the positive side, by having a well-established and written pet policy, you can prevent any anxiety that residents and potential residents may have around animals in the community. Not everyone likes cats, dogs, birds, rodents or lizards. Thus, establishing a clear policy and guidelines helps to keep everyone on the same level. However, there can be a downside to these policies as well.

Discriminating against pet owners could be costing you sales. According to the American Humane Society, the average income of pet owners is higher than non-pet owners — and we all know how important income qualification is for retirement communities! Also noted is that the average length of occupancy for pet owner is more than twice that of non-pet owners. Obviously, those are some good reasons to encourage pet ownership, as it could have a positive effect on your bottom line.

Let’s face the facts: The chances that someone is going to voluntarily give up a beloved family pet to move to your community is pretty slim. If his or her dog is 35 pounds, and you only allow pets up to 25 pounds, that puts the potential resident in a predicament. In fact, the American Humane Society reports that 50 percent of all dogs in the U.S. are over 25 pounds, the common weight restriction found in rental contracts. These kinds of situations generally end one of three ways — with you losing a sale, a couple being forced to give up an animal, or someone fibbing about a pet’s weight. It’s reasonable to say that none of these options are win-win outcomes. With divorce among Boomers increasing, we’ve seen firsthand that someone may leave their spouse, but they will not leave their pet just to move to your community. So, what can you do?

With this problem in mind, the American Humane Society rolled out a campaign aimed at helping pet owners and property managers find some common middle ground. We, at Varsity, especially appreciate the detailed list of common misconceptions about pets and their owners. It’s a great resource for aging services communities — and one that you should check out.

Click here to read the article.

If you haven’t reevaluated your pet policy in awhile, now is a great time to do so — especially with the summer sales season quickly approaching. Contact our team today, and we’ll be happy to share with you some best practices for pets and discuss how adjustments in your policy could help you increase occupancy — and maybe even fill those tough-to-sell floor plans.

Sources:

http://www.humanesociety.org/animals/resources/pets-are-welcome-renting-with-pets.html

In the aging services space, especially as it pertains to retirement community and rehabilitation services, 90 percent occupancy is an important benchmark. If you look at occupancy rates from key sources, such as NIC and Zeigler, you’ll find 91 percent to be about average as of late. At this level, most organizations have their costs covered and are probably in the black financially.

However, many organizations struggle to get above the 90 percent mark for a number reasons, including resident turnover, the time needed to remodel apartments and cottages, and the lead time it takes for a new resident to sell his or her house and move in. Thus, 90 percent has taken on the air of acceptability.

At Varsity, we strive for 100 percent occupied and reserved — not just because it sounds nice, but because that remaining 10 percent can be the difference between new community development, community improvements, higher wage increases and increased resident and staff satisfaction.

Let’s look at it from the financial standpoint first. For this example, we’ll start with a community that has 100 residences: 60 apartments and 40 cottages.

The apartments generate $1,000 a month in profit over and above costs for service, while cottages generate a similar $1,500 per month. (For simplicity, we’re going to disregard entrance fees, contract types and other mitigating factors that could cause confusion.)

This means that, during a single year, the apartments generate $720,000 of pure income, with the cottages creating an additional $720,000 — for a total of $1.44 million per year in profit.

Now, let’s look at the impact of an occupancy rate of only 90 percent each month — meaning that 10 of the 100 residences are unoccupied.

Seven empty apartments = $7,000 in lost income

Three empty cottages = $4,500 in lost income

That’s $11,500 in lost revenue each month, or $138,000 each year! While this a simplistic example, we think it’s important to realize just how much financial impact that 10 percent can have each month.

We do realize that true 100 percent occupancy isn’t sustainable. So, let’s imagine if your team can reach 95 percent occupancy consistently each month — an increase of only five percentage points. Now, you’re only leaving 5 percent of that revenue on the table. That’s an additional $69,000 in yearly income, which can still have quite an impact on the bottom line. It is that additional revenue that will help spur new community growth, provide increased wages and enable staff to address resident satisfaction concerns in a proactive way.

So, how do you tackle the challenge of selling that remaining 10 percent? In our next post, Jackie Stone, our VP of sales consulting, will share some of her insights for overcoming the 90 percent plateau that will help drive your community to be 100 percent occupied and reserved.