Tag: Senior Living Trends

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.

Families searching for senior living options often aren’t casually exploring. They’re navigating stress, uncertainty and emotional decision-making after a health event, hospital stay or major life transition. In those moments, trust, speed and guidance matter just as much as care offerings or amenities. That’s why placement partnerships are becoming an increasingly important part of occupancy growth and the overall family experience in senior living.

During Varsity’s weekly Roundtable, Matt Wilson and Lori Crabtree of Next Level Senior Advisors discussed how stronger relationships between senior living communities and placement advisors can create better outcomes for families while also supporting referrals, conversions and long-term occupancy growth. Below are a few Fresh Perspectives from their discussion. 

PLACEMENTS SHOULD BE VIEWED AS A REVENUE STRATEGY, NOT A MARKETING EXPENSE

Even one additional move-in per month can create significant long-term revenue, shifting placement partnerships from a cost discussion to a meaningful occupancy growth strategy.

FAMILIES AREN’T SHOPPING, THEY’RE IN CRISIS MODE

Most families are navigating fear, guilt and time pressure after a health event or hospital stay. Communities that simplify decisions and provide reassurance stand out quickly.

TRUST IS THE TRUE CURRENCY OF REFERRALS

Advisors build their reputation one family at a time. Poor communication, delayed responses or bad family experiences quietly damage referral relationships faster than communities may realize.

THE BEST PARTNERSHIPS ARE BUILT ON TRANSPARENCY AND SPEED

Communities that are upfront about pricing, responsive with communication and easy to work with are the ones advisors consistently recommend first.

SMALL OPERATIONAL CHANGES CAN CREATE BIG REFERRAL GAINS

Simple steps like maintaining updated profiles, assigning one advisor contact and creating a dedicated referral inbox can dramatically improve communication and conversion opportunities.

PERSONALIZATION BEATS VOLUME IN TODAY’S REFERRAL LANDSCAPE

Families don’t want endless lists of options. Advisors who narrow choices down to the best-fit communities create better experiences for families and stronger conversion opportunities for providers.

Senior living’s biggest opportunity may not be occupancy or operations. It may be human connection. The communities people truly want to be part of are the ones built around trust, culture, communication and meaningful relationships for both residents and families.

That was a major theme during a recent conversation on Varsity’s weekly Roundtable featuring Steve Moran, publisher of Senior Living Foresight and one of the industry’s most recognized voices on senior living culture, workforce challenges and innovation. During a candid Q&A, Steve shared what the industry is overlooking, where operators are getting it right (and wrong) and what senior living must do to better align with the expectations of a new generation of older adults. Below are a few Fresh Perspectives from the discussion.

CULTURE, NOT STAFFING, IS THE REAL CHALLENGE

The communities winning on workforce aren’t magically finding more people, they’re building cultures where employees actually want to stay, grow and feel valued.

FAMILY EXPERIENCE IS THE NEXT BIG OPPORTUNITY

Senior living often focuses heavily on residents while overlooking the emotional and logistical burden carried by families. Communities that intentionally support caregivers will build deeper trust and loyalty.

CONNECTION IS THE MOST UNDERSERVED NEED IN SENIOR LIVING

The biggest differentiator may not be amenities or programming, but helping residents and families form real friendships and meaningful human relationships.

TRANSPARENCY BUILDS TRUST, EVEN WHEN THINGS GO WRONG

Families don’t expect perfection. They expect honesty. Communities that communicate openly about challenges, mistakes and solutions create stronger long-term trust.

SENIOR LIVING MUST BECOME MORE ASPIRATIONAL

Most people still move into senior living as a last resort. The future belongs to communities that people choose earlier for lifestyle, purpose, connection and belonging.

LONGEVITY ISN’T ENOUGH WITHOUT QUALITY OF LIFE

The industry has become better at extending life, but it still struggles with how to support emotional well-being, cognition and purpose as people age.

THE WINNERS WILL PRIORITIZE PEOPLE OVER MARGINS

The most successful organizations over the next decade will be the ones known for exceptional care, communication, trust and human connection, not just operational efficiency.

KEY QUESTIONS

What is the biggest challenge facing senior living today?

While staffing shortages often dominate the conversation, Steve Moran argues the bigger issue is culture. Communities that create supportive, engaging workplace environments are often the ones attracting and retaining strong team members.

Why is family engagement becoming more important in senior living?

Families play a major role in the senior living experience, emotionally, financially and logistically. Communities that communicate well and intentionally support caregivers can build stronger trust, loyalty and long-term relationships.

How can senior living communities create stronger human connection?

The most impactful communities help residents and families build authentic relationships and friendships, not just participate in activities or events. Social connection may become one of the industry’s biggest differentiators moving forward.

What will define the most successful senior living communities in the future?

According to Steve Moran, the organizations that thrive long term will prioritize exceptional care, transparency, communication and human connection over simply focusing on operational efficiency and margins.

Aging has long been framed as a slow narrowing of possibilities, but that perspective is beginning to shift. In a recent episode of Varsity’s podcast, Roundtable Talk, Derek sat down with Colin Milner, founder and CEO of the International Council on Active Aging, whose work has helped redefine aging as a dynamic, engaged and opportunity-filled stage of life.

In their conversation, Derek and Colin explored why changing perceptions around aging takes time, the growing importance of closing the gap between lifespan and health span and how simple behaviors like staying active and curious can have outsized impact. Check out the full episode here.

WHY HAS IT BEEN SO HARD TO CHANGE THE NARRATIVE THAT AGING EQUALS DECLINE?

It really comes down to time. It was a massive wave going in one direction, and changing that takes decades. I was told it would take 30 years to make an impact, and now, 25 years in, wellness is everywhere. Things take time to change, and many people don’t stay in it long enough to see the results.

WHAT DOES “ACTIVE AGING” MEAN TODAY?

The definition hasn’t changed. It’s about being engaged in life, in all areas of life. What has changed is the implementation. If you’re engaged, the ripple effect begins to happen. You become more socially connected, more physically active and more involved overall. Engagement drives everything.

WHAT HAPPENS WHEN PEOPLE START SEEING AGING AS GROWTH INSTEAD OF DECLINE?

Everything changes. You start looking at possibilities instead of limitations. The world opens up to you instead of closing off. When systems are in place to support that mindset, people have the opportunity to grow rather than feel like things are being taken away from them.

WHY SHOULD WE FOCUS MORE ON HEALTH SPAN, NOT JUST LIFESPAN?

If we don’t shrink the health span gap, all we’re doing is extending life and extending years of ill health. Right now, that gap is about 12.4 years. People want to live longer, but not in poor health. We have to close that gap or longevity doesn’t really mean what we think it does.

WHAT ARE MARKETERS GETTING WRONG ABOUT OLDER ADULTS?

Ageism. Most marketers are younger and not excited about creating for an older audience. But two older adults control 70 to 75% of disposable income. It’s a massive opportunity that’s still being overlooked because of outdated assumptions about what aging looks like.

You’ve heard all the ageist cliches: Act your age. You’re no spring chicken. Old dogs can’t learn new tricks. You’re out of touch with society. And so many more. 

Is there any truth to these? Probably not. But here’s what we did realize about pop culture: You don’t have to be young to be relevant. 

Negative comments about aging and biases against older adults are pervasive in our lives. Which is why it’s so refreshing to see that pop culture has been debunking some of those stereotypes. Essentially, you can be mature and relevant, and we’re seeing proof of that in everything from toys to music. 

Justice for older women

Let’s talk about former Supreme Court Justice Ruth Bader Ginsburg, who was always an influential public figure throughout her career. But it wasn’t until her 80s when she truly became a pop culture icon. The film “RBG“ details her unlikely rise to stardom, including how she was lovingly nicknamed “Notorious RBG” by her fans.

Thanks to the wildly successful “Barbie“ movie, the iconic, sexagenarian brand is more popular than ever — with consumers of all ages. Most notably, director Greta Gerwig used the movie to challenge age-related stereotypes of women in the film industry. Barbie’s longevity has impacted many generations, and it’s refreshing to see that impact get updated in a positive way. For example, last fall Mattel released a limited-edition Stevie Nicks Barbie doll, whose style and dress pays homage to the 75-year-old Fleetwood Mac singer. 

Musicians don’t seem to age

Look at Mick Jagger and Keith Richards, both 80, who released their first Rolling Stones album in 18 years last fall. Yes, it’s true, society is still worshiping these octogenarian rockers — and rightfully so. Their “Hackney Diamonds” album even features guest appearances from the likes of Lady Gaga, Stevie Wonder and Paul McCartney.

Speaking of McCartney, 81, he’s another example of a musician who’s not slowing down anytime soon. Last year alone, he put out his “Eyes of the Storm” photography exhibition and accompanying book, a new podcast, finished up his Got Back tour and released the last Beatles song, “Now and Then.”

Also last year, 76-year-old Elton John completed his Farewell Yellow Brick Road tour. That’s after his relentless touring over the past 50-plus years, playing nearly 4,600 shows in 80 countries. 

At 90, Willie Nelson released his 74th solo studio album, “Bluegrass,” and was inducted into the Rock & Roll Hall of Fame. He continues to tour and perform. 

And we can’t forget how Dolly Parton stole the show when she appeared at the Thanksgiving day Cowboys-Commanders game dressed as a Dallas Cowboys cheerleader. She’s still got it at 77.

TV is the fountain of youth

This mature and relevant theme continues on TV. In fact, “Golden Girls,” four older women turned roommates, does seem to get better with age. After over 30 years since it last aired, its sassy dialogue still resonates with many, particularly millennials and the LGBTQ+ community.

There are also newer TV shows that play up older stars. “The Golden Bachelor” featured Gerry Turner, 71. Jane Fonda and Lily Tomlin were brought back into the spotlight with TV series “Grace and Frankie.” More than 30 years after the end of “Cheers,” Ted Danson is still being celebrated on TV, most recently with “The Good Place“ and “Mr. Mayor.” Michael Douglas starred in the “The Kominsky Method,” a show about an aging, once-famous actor who now makes a living as an acting coach. And even Carrie, Miranda and Charlotte are as chic as ever in “And Just Like That …“, the “Sex and the City” sequel. Only this time they’re dealing with issues like teenage kids and menopause, all while debunking media stereotypes of over-50 women. 

We’re just scratching the surface. There are endless examples of pop culture giving old age a fresh look. Maybe it’s because there’s an unprecedented population growth of people 65 and older. Or maybe society’s perspective has simply broadened to be more equitable to all ages. In any case, Jamie Lee Curtis, who won the first Oscar of her career for “Everything Everywhere All at Once” at age 64, said it best: “This word ‘anti-aging’ has to be struck. I am pro-aging. I want to age with intelligence, and grace, and dignity, and verve, and energy. I don’t want to hide from it.”

We hear over and over again about the extreme staffing shortages in senior living, and particularly about the lack of interest that younger people have in working in this industry.

But one twenty-something is bucking the trend. Alex Pavone, who graduated from Penn State University with a degree in health policy administration, said, “For many people, especially younger adults, senior living isn’t an appealing field. But for me, the industry is really intriguing. With the older population expanding, it poses a lot of opportunities for a long-term career.”

Alex’s interest in senior living started at a young age. “Volunteering at a community in high school, a college course in long-term care management, shadowing opportunities, as well as close relationships with my grandmothers,” she said. “These are a few of the things that sparked my interest in the industry.”

Alex’s recent visit to the 2023 LeadingAge Annual Meeting in Chicago made her interest even stronger. “I thought it would be a great opportunity to see what kind of resources are available to the industry,” she said. “The most fascinating thing was seeing the innovative products vendors have brought forward to serve these communities.”

Alex particularly loved the technology offerings. “I was especially interested by technology-based viewing of communities that allows you to ‘walk’ through the community without having to be there in person. This is a great resource for adult children as well as potential residents. Another technology I was excited about was robot restaurant servers.”

Currently working as an account manager and analyst, Alex has a strong work ethic, which runs in the family. Alex has seen her father, Michael Pavone, work to expand his business into many areas, including starting Varsity in 1992 to address the needs of the aging Baby Boomer population.

When asked what she has learned from her father over the years, Alex did not hesitate to share these three pieces of advice:

1. Never give up.
2. Hard work pays off.
3. When you love what you do, you never work a day in your life.

It’s not hard to see that wherever her career takes her (hopefully to senior living), Alex is sure not to work a day in her life.

 

Guest post by Mary Muñoz, Senior Managing Director, Ziegler

This is certainly an interesting time for senior living — we’re moving away from COVID-19, although we’re not quite past it yet. The pandemic has taught us a lot about where we’re headed in the future, but there are also a lot of industry trends that have remained constant through it all. Let’s take a look at what’s trending in senior living right now.

Industrywide Growth and Consolidation

What hasn’t changed with COVID-19 is the population wave we have coming, with a surge in the 75- to 85-plus cohort. And with that, we still have many drivers that make our business an attractive one. For starters, there are those still living at home who don’t have anybody there to take care of them during the day. We have the dangers of social isolation among older adults. And there are those who can’t afford caregiving.

In addition, we’re seeing a consolidation trend across the industry. Why is this happening? Almost every transaction we’ve seen has involved a CEO retirement. We’re facing a labor shortage in care and dining, along with a shortage on the C-suite side, as fewer people are coming into the senior living business, although larger organizations have some advantages in recruitment and career path offerings.

Ongoing Labor Market Challenges

Speaking of which, let’s talk about the labor market a bit. The U.S. Bureau of Labor Statistics is projecting almost 1.2 million annual job openings in senior living. Worldwide, we’ve already crossed the line in the past couple of years that there are fewer people under 5 than there are those 65 and older.* That means we literally won’t have the bodies to do things the way we’ve done in the past. So, we have to find ways to reinvent how work is getting done in our communities.

The pressures are coming from many different directions. We’ve got financial struggles, and the changing demographics of who’s coming into the workforce. Government reimbursement is under pressure, which in turn affects health care worker wages. The pandemic caused clients to lose employees because they refused to be vaccinated or simply burned out. Immigration was disrupted and a lot of the caregivers we get from across the border were affected. And then we have the lasting issue that senior services isn’t exactly a sexy line of work.

Stressors in Skilled Nursing

For post-acute care, I want to highlight the compounding challenges in the skilled nursing environment. COVID-19 definitely exhausted and burned out employees. There’s also the need for private rooms, which many communities did not offer pre-COVID. And a lot of the nursing communities are old, with declining occupancy, in part because we didn’t have assisted living and memory care until recent years. So, there were some people who didn’t need to be there and could be taken care of in a less acute setting.

All of these factors are leading to a downsizing of skilled nursing, and in some cases the transition of skilled nursing rooms to high-acuity assisted living. In fact, we’ve counted 35 Life Plan Communities around the country that have eliminated skilled nursing from their continuums in favor of high-acuity assisted living.** And there are many new communities being built right now that have no skilled nursing.

Technology as a Partner for Smarter Aging

There are many developing technologies that serve seniors in various ways. We’ve certainly had a dramatic rise in telehealth during the pandemic. Beyond that and electronic medical records — which most already have in place — there are resident engagement technologies, including dining reservations, menus and activities. There’s also been a focus on predictive technology, not only tracking footsteps but also predicting falls by tracking gait. That’s in addition to cognitive brain solutions, smart home technology and even robots. While robots probably won’t cure the labor shortage, we have seen communities using robots to deliver plated meals and bus plates in dining venues, for example.

These four takeaways are just the beginning of what’s trending as we emerge from the pandemic. For more information, feel free to subscribe to the Ziegler e-newsletter, refer to our white paper about health care technology or message me at mmunoz@ziegler.com.

*Source: U.S. Census Bureau, Percentage of World Population Under Age 5 and Aged 65 and Over: 1950-2050

**Source: Ziegler Investment Banking

Solo agers. Kinless seniors. Elder orphans. These buzzwords have entered the common vernacular, but they’re also describing a very real shift in demographics. The current generation of seniors contains more solo agers than ever before.

“Solo agers” are defined as those over age 50 who live alone, are not married or partnered in a long-term relationship, and have no living children. They make up 12% of the ages 50+ population in the United States, and this trend is increasing, as more baby boomers get divorced and fewer have children, and people live longer overall.

According to a recent report by Forbes, among adults 75 years and older (not boomers), 10.9% reported being childless; among those ages 65–74 (early boomers), 15.9% reported being childless; and among those ages 55–64 (late boomers), 19.6% reported being childless.

Right now, there are close to a million solo agers in the U.S., and as Generation X and Millennials head to retirement, that number could grow even larger. These generations are getting married even less frequently than boomers.

What does the trend toward more seniors without family ties mean for retirement communities? We hear a lot about “demanding boomers” and the high-end amenities they expect — but another audience to consider is diverse populations like these.

According to an article in InsideHook, kinless seniors often live alone and rely on appointments with doctors or encounters with cashiers to interact with other people.

What’s more, a Canadian study reported in the New York Times that those without partners or children had lower levels of self-reported mental and physical health, and higher levels of loneliness, which in itself has been linked to many health conditions. Even more worrisome, a decade after respondents’ initial interviews, more than 80% of seniors with partners and children had survived, compared with only about 60% of those without either.

In contrast, studies have shown that residents of Life Plan Communities tend to live longer than other people. So what better environment for solo agers than senior communities, where they can form meaningful friendships and live happier, healthier, longer lives?

Here are a few suggestions on ways to connect with kinless seniors — and to help them get the most out of your community once they join it.

1. The sales process

Typically, the salesperson must consider the influence of adult children on the sales process. But there are a growing number of prospects who will be trying to make these decisions on their own, and who will be looking for input and advice.

2. Online resources

Why not show that you understand this growing audience and their concerns by including solo ager-focused blogs and resources on your website?

3. Prospect events

Events can address issues that solo agers are coming to terms with, such as decision-making on one’s own, medical power of attorney, financial planning and loneliness.

4. Marketing materials

While married couples will always be depicted in brochures and ads, it’s also important to think about the diverse populations we’re serving and make sure they’re represented in marketing pieces.

5. Campus events

Since connecting with others is so important for kinless seniors, inclusive activities, events and clubs can help them feel a part of campus life. Shared meals with “friendship tables” open to all are also a great way to make solo agers feel welcome.

6. Celebrations

Holidays like Mother’s Day, when the mailroom is filled to bursting with bouquets and cards from children around the country, can be a time to also acknowledge those who don’t have children.

7. Support groups

Campus support groups that address the needs of solo agers can help them find a niche in your community.

Senior communities have always had a focus on supporting solo residents, but with the trend toward more divorces and lower marriage rates, combined with longer lifespans, this group will only continue to grow. In a society that doesn’t provide well for those without family ties, communities can be a powerful solution to help them thrive during their later years.

I’m Stuart Jackson. executive vice president at Greystone. We are a development and operations consultant in all areas of senior living. We work with Life Plan Communities in over 40 states, and have consulted with well over 500 providers in our corporate history. We are often asked to come in and bring strategic thinking to help organizations grow, adapt and change.

Recently, Brad Straub, executive vice president at Greystone, and I presented “A Bird’s Eye View in Growth and Redevelopment” at the Greystone Sales Adventure event in Dallas. In this post, I’ll touch on some of the highlights, including trends within the space and how your peers are adapting their businesses to them.

An Overview of Our Current Environment

Our current environment has a lot of pressures and uncertainties. Inflation has had its impact. Labor has been difficult to come by. Interest rates are rising. Hopefully, we’re past COVID-19 to a degree, but that’s been painful and tough. Yet there are positive indicators, too, like demographic growth, economic improvement and a healthy real estate market  (depending on where you are). Cost of capital has historically been a positive indicator. Rates are rising, but availability is still relatively strong.

Demographics Remain Strong

I want to emphasize the positive indicators that make us excited for the future of senior living. There will be continued, sustained growth of the senior population over the next 20 years. The roughly 25 million 75+ year-olds in the U.S. will grow to roughly 45 million, remaining strong. By the mid-2020s, twice as many people will celebrate their 65th birthday than in the 1980s and ‘90s.

Households Age 75+ by Income

All of that is great, but you might ask, “Will this generation have the economic means to move into a retirement community in the future?” We looked at projections from 2016 as to how many households would meet income thresholds in 2021. When we compared them to the actual 2021 data, the number of seniors meeting those thresholds were actually 30% to 40% greater than projected. That tells us that when looking to the future, seniors will have more income and assets than they had before.

US Home Values Up 110% Since 2002

In some locations we’ve seen a decline in home prices. But we have to take a broader view. Seniors who have owned their homes for a long time have experienced significant run-ups in price. The value of homes post-COVID-19 has skyrocketed. That’s a positive indicator for entrance-fee-based communities, as seniors will have even more assets than anticipated.

Favorable Mortgage Rates

The bond market expects mortgage rates will average 5.6% in 2023. If you look at rates, they’ve risen sharply over the last nine months, but they are still at all-time lows. They’re projected to normalize in the 5% range. That’s great for a buyer looking to buy a senior’s home when they sell it.

Current Market Conditions

Sales and pricing conditions are slow or very slow in 64% of markets, down from 81% last month. 36% of markets are normal, which reflects 2–3-month sales per community with rising net prices. Homes are selling in around 60 days, which is pretty normal for this last decade.

What’s on Providers’ Minds Today?

Let’s shift to the current landscape and touch on the mindset of the customer. Even if people have a high-value home, that doesn’t necessarily mean they’re confident in selling their house and moving into senior living. They may be hearing about the economy and putting a pause on the decision-making process. So how do communities address planning for the future?

We’re seeing a range of methods to position communities for the future, including expansions of current campuses, new locations, satellite locations, acquisitions and affiliations. Let’s focus on a few.

Expansions

Expansions are a great way to incrementally innovate your campus, to better position yourself with current residents, and better serve future Boomer residents who may look to your community for aging well. We believe you should create projects in small phases that are both market- and financially supportable, in order for expansions to support themselves and generate benefits for your organization.

Independent living is the main focus. Creating larger accommodations has absolutely been a trend, because Boomers have more resources and are willing to pay for, or wait for, bigger accommodations. If you have one-bedrooms or studios, you may find those challenging to fill. If you have assisted living and/or memory care on campus, our view is to right-size those types of residences to benefit mostly your internal population, and have them fill those levels of living. Choice for the consumer is key. There is lots of focus on dining and amenity spaces, and how existing spaces can benefit new prospects. We’ve talked about pickleball more in the last six months than I think we ever have! That’s what we’re seeing a lot of, combined with great social spaces.

Canterbury Court is an example of a recent Greystone expansion. This Buckhead Atlanta community has a replacement healthcare building going in next to their existing towers. We’ve been helping them adjust by reducing their healthcare and adding more independent living.

Satellite Campuses

Another trend we’re seeing is the satellite campus. If you’re landlocked and have a difficult time adding more land to your campus, but you need more independent living to improve your offerings, the way to do so is with a satellite location. At Friendsview in Portland, we created an expansion of an existing satellite cottage community, about one-and-a-half miles from the main campus. This satellite community is also adjacent to the nearby college campus for lifelong learning opportunities. It’s already sold out and filled up.

Strategic Pricing

Another area we spend a lot of time digging into is strategic pricing analysis to really evaluate your market.

Nationally, the number of age-and-income-qualified seniors in the market has jumped 20% in the last two years. Your market can afford more. There is value in adjusting your entrance fees and monthly fees, and you can analyze your current pricing and compare it to the pricing of your competitors. Once you have that knowledge of your market, you can determine how to change your pricing and contract structures, and look at your healthcare benefit and refund options. This analysis can help your businesses with inflation and rising costs that are putting pressure on your operating margin.

One thing to do in any pricing analysis is prepare a penetration analysis. We actually test every unit, style and price point across monthly and entrance fees, to understand the market’s ability to afford those specific price points within your mix of units. That penetration rate shows either risk or opportunity in your marketplace.

I hope this analysis of the latest trends in senior living has been helpful to you. Today’s landscape has challenges, but there are many positive indicators that can help your community move forward to a successful future.

By Dana Wollschlager,  Plante Moran

This article was originally published by Plante Moran. Reprinted with permission.

The actions senior living leaders take now will set the stage for how their organizations transform and thrive into the future. Success will require a fundamental shift in the way leaders approach their business.

As senior living and care providers slowly pivot away from crisis-mode, it’s clear we’ll be facing a new normal rather than business as usual. The actions leaders take now will set the stage for how their organizations emerge from this crisis. Success will require a fundamental shift in the way leaders approach their business — a shift that may be especially difficult for those used to the slower pace of nonprofits.

Catalyzing Transformation

There are six ways leaders need to adapt their thinking to catalyze transformation within their organization.

Be bold — ask the critical questions

The first step to transformational growth is to ask the uncomfortable question, “What needs to change within our communities?” Leaders should scrutinize their operations, procedures, culture, technology, design and the built environment, unit mix, staffing model, pricing … the list should be exhaustive of every function of your organization. Just because you’ve always done something some way doesn’t mean it should remain that way. In fact, familiarity and longevity might make a process even more suspect.

Be thoughtful — start with strategic planning

Strategic planning is a critical first step toward meaningful transformation, allowing organizational leaders to align on the vision, goals, and objectives that will guide decision-making and hone priorities. This process requires an analysis of internal strengths and weaknesses and external opportunities and threats to guide planning that will transform your organization into a stronger, nimbler one. As part of those discussions, consider policies and regulations, economic trends, and broader senior living trends that may affect any long-term decision-making.

Be adaptable — consider diversification of portfolio and position

Does your organization have too much of one product and service? Many organizations are evaluating the produce and revenue mix in light of the pandemic. Especially as consumers in the market continue to show their preference for assisted living and independent living over nursing homes, you’ll need to consider reducing the number of skilled nursing beds  on your campus. A market study will shed light on the demand and supply metrics in your market to uncover where you may be overbuilt or missing opportunities.

Be inclusive — prioritize leadership diversification

According to research, diverse teams are better at making decisions 87% of the time over non-diverse teams. Diversity of skillsets, diversity of thought, and diversity of leadership will help make your organization stronger. Consider looking outside of our industry for new talent and broadening your diversity, equity, and inclusion (DEI) initiatives  for new leadership candidates.

Be educated — provide ongoing board education

Leaders must make ongoing education a priority for the organization’s board members. Your board members generally do not work in our industry, so they don’t have firsthand knowledge of the day-to-day operations and challenges we face. Making sure they are abreast of current factors influencing the senior living and care industry will go a long way to helping them make informed, timely decisions when necessary. We offer board retreats to bring your board members up to speed on important market trends.

Be prepared — think about succession planning

If you’d like to see your organization remain viable over the next 10, 20, 30 years, successful planning is key. Succession planning is often only addressed when change is imminent or in response to an unexpected crisis or staff departure. Starting early not only allows for better planning but fosters talent development at a more realistic and achievable pace. If your organization has not focused on building a team behind the current leadership, now is the time to build a plan. (Your DEI efforts factor into this as well!)

Leading the Change

Now more than ever, the market is demanding leaders adapt if they want their mission to survive and thrive. This kind of change will not happen overnight. The process to become more bold, thoughtful, adaptable, inclusive, educated, and prepared is one started with optimism and continued with intentionality. Senior living organizations will become healthier and stronger if we commit to shedding the expectations of the past, challenging the status quo, and blazing a trail toward transformation.