MARKET FORCES: Strategic Trends Impacting Senior Living Providers – Part 3

 

In this multi-part newsletter and podcast series, we tapped into the knowledge of Minneapolis based author and consultant to the Senior Living Industry, Jill J. Johnson, MBA. Her career spans four decades and has become a go-to expert in the industry.

To prepare for this series, Jill provided us with a couple copies of her latest book entitled, Market Forces – Strategic Trends Impacting Senior Living Providers, and we dug into this book with a pen and highlighter in hand. The amount of intriguing, interesting, informative data, and experiences she’s dealt with were impressive. And yet, it was an easy read!

So, here we go with Part 3….

We’ll begin by discussing what Jill calls The Strategic Impact of Competition. Years ago, in this industry there were basically two kinds of congregate housing for seniors: independent living and nursing homes. Then this “new” concept called assisted living began to emerge in the mid-1980’s.For most providers, “independent living” is just their base assisted living level with the primary services included being three meals, housekeeping, some utilities, activities, and the potential to add home care of healthcare services for an added fee as the residents age in place.

This approach does offer older seniors who are frail, but too proud to admit they need help, with an opportunity to say to others that they are residing in independent living, so they won’t have to be embarrassed. But in reality, the lack of clarity of services likely leaves many prospective residents confused.

 

Keep in mind, each market is different, but the basics of a full continuum require at least the three major levels of care: independent living, assisted living, and nursing home care.

We now see efforts in the industry to rebrand continuing care retirement communities (CCRC’s) into life plan communities (LPC’s).

On a more practical not, “Curb Appeal” still remains a drawing factor or a deterrent depending on the, well, curb appeal. Attractive settings often seduce families. Few of them have any experience evaluating senior housing, so they evaluate locations based on what they can see. It’s just a keen reminder of how important of a nice, clean, welcoming community.

Our entire team at Vincent Companies as well as all our strategic partners have always taken pride in never being fine with the status quo. We welcome change. To us, these challenges present great opportunities for operators striving to make a positive impact in the senior living industry. While there will be many pivots over the next couple decades, we are ready, willing, and able to remain not only a leader in the industry but to remain the “standard” in which all others attempt to emulate.

Sources:
Jill J. Johnson, MBA. Content taken from her book Market Forces

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