Leaders identify sources of funding for seniors’ wellness model
Senior living operators looking for ways to pay for an increased presence of wellness programs in their communities have several options, concluded a think tank of senior living leaders who attended the forum. June from the International Council on Active Aging. A report with their recommendations was released on Thursday.
Thought leaders attending the forum included executives and managers from Continuing Care Retirement/Life Plan Communities, Independent Living and Assisted Living Communities, Memory Care and Care skilled nurses, affordable housing and home care services. They also identified metrics and key performance indicators to frame a new business model based on a wellness lifestyle.
Achieving a new model of wellbeing with care options requires creative approaches to funding, they said. The think tank recommended investigating potential funding resources that may not be historically linked to wellbeing and also focusing on short-term outcomes to build on the road.
Potential sources of funding that can form the basis of a wellness model, they said, include allocations from the operating budget, additional dollars from private compensation for meals and programs, paid services and programs open to the general public, private equity investors, financial institutions, government or government waivers, partnerships and grants.
According to the report, investing in wellbeing can generate returns on health, wellbeing and satisfaction that translate into cost savings, relocations and new income opportunities.
“Integrating the wellness philosophy across departments and services is an investment that generates new revenue and reallocates current funds,” said ICAA CEO Colin Milner. “It’s a catalyst for the long-standing goal of breaking through departmental silos and generates a return on health, well-being and satisfaction that translates into cost savings, move-ins and new revenue opportunities. .”
Well-being has value
The wellness philosophy merges clinical and non-clinical services into a suite of services that claims to save money and labor while opening the door to new revenue streams.
According to the ICAA, wellness brings value to the retirement home industry by increasing length of stay, stabilizing occupancy and increasing income. It also increases resident independence and engagement, reduces resident care needs by focusing on prevention, improves the staff experience, and creates an environment that attracts paying private non-residents to programs, restaurants and health screenings, according to the group.
The wellness lifestyle could also be the key to attracting and satisfying the middle-income market, according to the ICAA, which could stabilize occupancy in the long term.
Adopting a wellness philosophy will also result in savings that can be reinvested in wellness, the ICAA said. According to the report, cost savings can be realized through staff retention, healthier residents and the use of existing community programs and volunteers.
“In terms of business goals, length of stay is a key performance indicator of great value to seniors’ lives – as are resident satisfaction, willingness to refer, and a community that attracts people who want the wellness lifestyle, even when they need care services,” said Milner.
According to an ICAA survey, 61% of senior living respondents said that by 2025 their community will be based on a wellness lifestyle with care options, rather than care with wellness options. For this to happen, said the ICAA, one must identify goals, objectives and effects; carry out an organizational audit; and evaluate performance.
According to the report, key performance indicators that consider adapting to the new wellness model include occupancy, length of stay, staff turnover, clinical indicators and functional outcomes, as well as measures performance of the program or initiative.
“It’s time to make a change,” the document read. “Balanced on the inflection point, senior living organizations may decide to grow with a wellness strategy and culture, or stay with traditional philosophies and care.
The report “Financing the New Model of Wellbeing in Seniors’ Residences” is available on the ICAA website.