Greetings!
The ever-changing landscape in assisted living and skilled nursing is sprouting trend lines that will grow in 2011 and beyond. Now is the time to re-evaluate business strategies and marketing efforts to maximize the opportunities revealing themselves in 2010 and pointing the way to success in the years to come. |
| HEALTH CARE IS LIKE TELEVISION | |
 Forty years ago television offered a handful of channels from which to choose. Advertisers had a captive audience and viewers were interested in the new products being sold to them. Fast forward thirty years and consumers have a multitude of channels and programs from which to choose with advertisers selecting the audience that most closely fits the demographic profile of their customers.
The same increase in choice and segmentation of the market that happened decades ago in television is now coming to health care and senior living. It will drive who we serve and how we serve our customers. Marketing campaigns and messages must become smarter and clearer to reach the clients who are most interested in purchasing our services.
Key trends from 2010 are leading the way to the future for assisted living and skilled nursing communities. Stay tuned for some key harbingers of change. |
| DELAYING SERVICES | |
| The average age upon entry to assisted living communities and skilled nursing facilities is on the rise in the US, the UK, and Europe.
Given the projected increases in longevity, this pattern is likely to continue for many years to come. What does this delayed use of services mean for owners and managers of assisted living and skilled nursing communities?
 When residents arrive in either assisted living or skilled nursing communities, their length of stay will be shorter because they will become sicker quicker. While living in either type of community, residents will require more assistive, medical and pharmaceutical services with higher staffing ratios. These added services translate to not only higher costs but also a need for owners and managers to develop new pricing strategies to attract and retain clients. |
| MARKET FRAGMENTATION | |
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Assisted living and skilled nursing facilities have historically marketed to a broad audience. To effectively compete in this changing market place, owners and managers need to identify the segment of the overall market that is best suited to use its services and then aggressively market to those potential consumers. The one-size-fits-all approach is the past not the future of assisted living or skilled nursing.
 For example, the assisted living sector is fragmenting by offering specialized services. Communities may be focused on healthy, actives adults over the age of 55 who are interested in travel and lifestyle such as the retirement communities for expats that are popping up in Spain and Mexico. Other communities target individuals who require more personal assistive services for those who are medically frail or suffering from early stages of dementia.
Success in the future requires that the owners and managers have a clear understanding of the services they offer and the characteristics of the people who will fill their buildings and the right messages to be delivered to that group. |
| INCREASED COMPETITION, NEW COMPETITORS | |
| Short term rehabilitation patients represent the money making sweet spot and skilled nursing centers have owned most of this line of business. Given the current financial squeeze, assisted living facilities are starting to wake up to this previously lost opportunity and successfully challenging skilled nursing facilities for these lucrative clients.
Whether you are a skilled nursing center serving short term rehab patients or an assisted living community pursuing these clients, the future promises more battle lines being drawn between these two sectors.
Are you ready to defend or expand your position in this segment of the market? |
| RETHINKING SPACE | |
| Baby boomer children who are driving decisions for aged parents as well as beginning to consider choices for themselves are having an impact on how assisted living and skilled nursing communities are designed or reconfigured.
 Yesterday's assisted living residence is fifty units on five acres in suburbia. Tomorrow's community will represent a broad array of choices allied to a particular target market. Aging adults are moving to urban areas to be closer to medical and other services as well as to avoid social isolation. Repurposing buildings with large units and a lot of common space will mix with other communities designed to meet other needs.
A similar transition is happening to skilled nursing centers where the larger rehab role is decreasing the average length of stay as well as decreasing the number of people who die there. With more rehab taking place, the demand for larger, ensuite single rooms is on the rise while more space is needed to deliver the rehab services either in private rooms or common areas.
A deeper understanding of the target market with its changing needs and desires is required to design or reconfigure both the assisted living and skilled nursing communities of 2011 and beyond. |
| FINDING ANSWERS | |
If you don't know where you are going, any road will get you there. Let Stackpole & Associates work with you to draw the road map to success. With extensive knowledge and expertise in virtually every facet of healthcare, our team will put its experience to best use for you, today and in the future. |
