innovation and transformation in assisted living

Innovation and Transformation

in Assisted Living

ALFA 2015 The Senior Living Executive Conference

May 5, 2015

Robert G. Kramer

Chief Executive Officer

National Investment Center for Seniors Housing & Care

1

The Future of Assisted Living – Six Key Trends

1. A New and Demanding Consumer

2. Reality of Health Care Reform

3. Opportunity of Technology

4. Challenge of Affordability

5. Demand for Transparency

6. Increasing Role of Palliative Care

2 ©2015 National Investment Center for Seniors Housing & Care (NIC)

1. A New and Demanding Consumer

Impact of Baby Boomers

“Declinist” view of aging vs. “engagement” view of aging

Rapid decline in informal care givers


Impact of Baby Boomers

1960s – Social protests/counterculture

1990s – Options for their parents

21st Century – Retirement for themselves


Contrasting Views of Retirement and Aging

Old View of Retirement:

“To Go Away” = Disengage, Disconnect, Decline, Disappear

“I’m Finished, Done!”

The Golden Years/Twilight Years

Value Safety, Security, Comfort

Future View of Retirement:

“Reboot” = Engage, Enrich, Experience, Enjoy

“What Will I Do Next!”

The Purposeful Years/Boomer Power

Value Engagement, Connection, Enrichment


Favorable Demographic Drivers…

► Caregiver Support Ratio

► AARP Study Suggests Ratio of Caregivers (45-64 year olds)

to Those Over 80 Will Shrink

7:1 2014

4:1 2030

3:1 2050

► Declining Fertility Rates among Baby Boomer Women

► Baby Boomers Shift from Being the Caregivers to Being the

Receivers of Care


2. The Reality of Health Care Payment

and Delivery System Reform

Integration vs. silo-based

“Value/outcome based vs. FFS based

Shared risk responsibility for the patient across settings

Bundled payments, ACOs, MCOs, Integrated Care Demos


Demand Pull/Cost Push Pressures Favor Seniors Housing

Aging, Demographics, Acuity Levels and Disabilities

Rising Penetration Rates

Fewer Family Caregivers

Social Engagement, Support and Emotional Well-Being


Age-Restricted Housing

Independent Living

Assisted Living Memory Care Skilled Nursing Hospital

Accountable Care Organizations Post Acute Care Collaboration Fee-For-Service Framework vs. Quality and

Value-Based Outcomes (Cost Considerations)

3. Opportunity of Technology

Enhance the experience

Improve the efficiency

Advance quality

Four Areas of Focus

1. Operational

2. Health and wellness

3. Independence

4. Social


4. Challenge of Affordability

National long-term care strategy

Three traditional sources for private pay

Challenge of an affordable product for the middle class


5. The Demand for Transparency

Demand will come from care partners, payers, regulators, investors, and the consumer

Data: The new differentiator

Must deliver, document and demonstrate results


6. The Increasing Role of Palliative Care

Quality of life


Barriers

1. Lack of available staff

2. Regulatory rigidity

3. Technology preparedness

4. Exclusive focus on high end markets

5. “We have always done it this way” approach

6. Societal attitudes


The Opportunity

Increased market penetration rates

Need to tell our story and present our

value proposition

Need to define what we stand for and

what the customer can and should

expect


Robert G. Kramer, Chief Executive Officer

National Investment Center

for Seniors Housing & Care (NIC)

[email protected]

410-267-0504


National Investment Center

for Seniors Housing & Care

Marsh’s Edge, St. Simons Island, GA

16

innovation and transformation in assisted living

Documents