LONG-TERM CARE

Positive trends helping the sector grow

Good news for long-term care: despite ongoing challenges, several positive trends and developments are providing momentum and optimism for the long-term care (LTC) industry.

1. Rising Demand and Occupancy Recovery

• The aging Baby Boomer population is driving a surge in demand for LTC services, with the oldest Boomers turning 80 next year and an expected influx of 16 million seniors through 2050

• Occupancy rates in senior housing and skilled nursing are rebounding, with some markets nearly back to pre-pandemic levels and absorption rates up significantly—by as much as 40% year-over-year in early 2024

• . This recovery is boosting revenues and stabilizing operations for many providers.

2. Technology Adoption and Operational Innovation

• LTC providers are embracing technology at an unprecedented pace. Advancements in artificial intelligence, remote monitoring, electronic medication administration records (eMARs), and automation are streamlining operations, improving efficiency, and enhancing resident care

• Digital tools are helping with staffing optimization, predictive care planning, and back-office modernization, leading to better decision-making, reduced administrative burden, and improved financial sustainability

3. Focus on Staff Well-being and Retention

• Providers are investing more in staff training, professional development, and workplace culture to attract and retain caregivers. AI and automation are also being used to ease HR workloads, improve onboarding, and optimize shift planning, which helps address workforce shortages

4. Value-Based and Personalized Care Models

• There is a growing emphasis on value-based care, with LTC facilities adopting strategies to improve resident outcomes, reduce hospital readmissions, and optimize resource use

• Personalized medication management and resident engagement initiatives are enhancing quality of life and satisfaction.

5. Financial and Market Tailwinds

• The Federal Reserve’s interest rate cuts in late 2024 have lowered borrowing costs and improved cash flow for many LTC operators, providing much-needed financial relief and supporting capital investment

• Mergers, acquisitions, and regional expansions are creating new opportunities for growth and innovation as providers seek scale and efficiency

6. Industry Resilience and Adaptability

• After years of pandemic-related disruption, the LTC sector has demonstrated remarkable resilience, adapting to new challenges and positioning itself for future growth

• Providers continue to innovate, modernize, and focus on quality, ensuring they remain essential to the healthcare continuum.

The Senior Living and Long-Term Care industry is growing fast, but success will depend on being adaptable. Providers who stay ahead of policy changes, rethink growth strategies, manage finances wisely, and embrace smart tech will be the ones leading the way.

Legal and Financial Consequences:
SNFs face lawsuits and penalties for failing to manage risks. Poor risk management practices can expose SNFs to significant legal and financial consequences, including lawsuits, fines, and penalties.

Reputation Damage:
Poor risk management can damage the reputation of a SNF, leading to decreased enrollment and reduced revenue.

Increased Healthcare Costs:
Weak risk control measures can lead to outbreaks and infections. When SNFs fail to manage the risk of infection, they can experience outbreaks that require significant healthcare resources to manage.

Loss of funding:
Substandard risk handling can lead to loss of funding from government agencies and other sources. SNFs that fail to meet regulatory requirements for risk management may lose funding from government agencies, such as Medicare and Medicaid.

Staff Burnout:
Deficient risk assessment can lead to increased workload and stress. When SNFs fail to effectively manage risks, staff may be required to take on additional responsibilities or work in high-stress environments. This can lead to burnout, job dissatisfaction, and increased turnover rates.

Resident Harm:
Insufficient risk mitigation can lead to harm or injury to residents, which can lead to decreased quality of life, physical and emotional harm, and in some cases, death. SNFs have a responsibility to protect their residents from harm, and poor risk management can lead to serious harm or injury.

Reduced Confidence in the Healthcare System:
Inadequate risk management can reduce public confidence in the healthcare system, leading to decreased trust with SNF operators. When SNFs fail to effectively manage risks, they can erode public trust in the healthcare system. This can lead to reduced demand for healthcare services, as well as increased scrutiny from regulatory bodies and the public.

SOURCE: SNFmetrics

POLICY

Judge blocks $11 billion in cuts to public health funding

A coalition of 23 states on Friday won a preliminary injunction barring the Trump administration from slashing more than $11 billion in public health funding approved by Congress during the Covid-19 pandemic.

“While the court acknowledges the government’s position that it may be forced to spend money inconsistent with the executive’s agenda, an injunction would strongly serve the public interest in maintaining the states’ healthcare systems and initiatives,” U.S. District Judge Mary McElroy of Rhode Island, wrote in a 60-page order blocking the cuts as the case proceeds.

“Agencies do not have unfettered power to further a president’s agenda,” she wrote. She cited the administration’s lack of procedure in slashing funding as problematic.

Since the states now have a preliminary injunction, the administration cannot pull the funding as the litigation proceeds. 

IN THEIR OWN WORDS

Excelas helps organizations respond accurately and quickly to claims and litigation brought against them

Partnering with attorneys, health care organizations, and insurance companies since 1995, Excelas provides medical legal analyses and tools for building winning defense strategies. When expertise, accuracy, reliability, and on-time delivery count, you can count on Excelas.

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