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

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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

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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

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

Impact of Baby Boomers  1960s – Social protests/counterculture

 1990s – Options for their parents

 21st Century – Retirement for themselves

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

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:    

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“Reboot” = Engage, Enrich, Experience, Enjoy “What Will I Do Next!”

The Purposeful Years/Boomer Power Value Engagement, Connection, Enrichment

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

Favorable Demographic Drivers… ►

Caregiver Support Ratio

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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

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Declining Fertility Rates among Baby Boomer Women Baby Boomers Shift from Being the Caregivers to Being the Receivers of Care

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

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

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

Demand Pull/Cost Push Pressures Favor Seniors Housing 

Aging, Demographics, Acuity Levels and Disabilities

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Rising Penetration Rates

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Fewer Family Caregivers

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Social Engagement, Support and Emotional Well-Being

Age-Restricted Housing

Independent Living

Assisted Living

Memory Care

Skilled Nursing

 Accountable Care Organizations  Post Acute Care Collaboration  Fee-For-Service Framework vs. Quality and Value-Based Outcomes (Cost Considerations)

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

Hospital

3. Opportunity of Technology  Enhance the experience  Improve the efficiency  Advance quality

Four Areas of Focus 1.

2.

3.

4.

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

Operational Health and wellness Independence 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

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

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

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6. The Increasing Role of Palliative Care

 Quality of life

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

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

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

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

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

Robert G. Kramer, Chief Executive Officer National Investment Center for Seniors Housing & Care (NIC)

rkramer@nic.org 410-267-0504

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Š2015 National Investment Center for Seniors Housing & Care (NIC)

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Marsh’s Edge, St. Simons Island, GA

National Investment Center for Seniors Housing & Care