The problems that have plagued the lives of the elderly and the care sector since the pandemic began will continue to slow the recovery in 2023.
Higher spending, lower revenues and lower cash flow due to the pandemic were only exacerbated by an inflationary economy in 2022. Interest rate hikes aimed at keeping costs down will put further pressure on profit margins as wages (the wages of less-needed workers) and food and construction costs continue to rise. Those communities with variable interest rates are also feeling the pressure.
Moreover, although hyperinflation has increased costs, many communities cannot simply ‘price up’ or ‘charge more’, especially when the majority of revenue comes from the federal government. We are not catching up on the revenue side.
On a brighter note, capacity utilization continues to recover from pandemic-related declines and could gain significant momentum by the end of 2023.
Operators with stable controls, especially in terms of manageable and hard-to-manage risks, are best positioned to emerge as a whole despite their resilience being tested.
Below are the key trends in managing seniors’ organizations to prepare for 2023.
worrisome labor shortage
Since the pandemic began, more than 300,000 workers have been laid off from long-term care facilities in the United States. This is not a new situation, just two years of missed immigration made the situation worse.
Now more than ever, employers need to find ways to add value to their jobs and give people a reason to seek them out. The job itself has no appealing aspects, but better pay and benefits make it more appealing.
Importantly, a more robust package of benefits that anticipates your needs as an individual can go a long way. This doesn’t have to mean health care. For example, programs that address financial wellness are of great value. Consider an employee purchase program to keep expensive items within reach.
It also pays to be creative. Instead of surplus salaries, community partnerships can be developed to educate the new workforce. Why not pay for in-house nursing training while recruiting high school graduates into non-clinical positions?
Additionally, environmental and cultural factors play a role in recruitment and retention. Think about the atmosphere and safety of your co-workers, not only from physical stress and strain, but also from resident and outside violence. Leveraging them all can help you stave off losses.
Prioritize value-based care
The elderly living and care sector is struggling to rebuild its COVID-19-affected infrastructure to adequately care for the rapidly growing elderly population, as the industry struggles to Everyone is concerned about how to provide quality care despite the pressures they face.
Staff shortages are hindering how well care can actually be delivered.As McKnight’s Senior Living Sister Media Brand McKnight Nursing News As recently reported, skilled nursing providers are motivated to provide quality care (through performance-based or value-based care) by tying Medicare payments to safety and quality measures. may be attached.
But do these incentives support staff by improving working conditions, wages and benefits, or by improving staffing rates? After that, it was not enough for the profit motive of the operator. And what about privately funded senior living where health care is increasingly provided?
This issue will continue to be the top issue in 2023 and beyond, as value-based care is seen as a key means for improving health outcomes for older people. CMS, he intends, by 2030, will at least make the Medicare portion of skilled nursing homes part of value-based care, so it deserves serious attention by the industry in 2023 and beyond. .
Responding to blocks and abnormal risks
Managers also need to exercise constant vigilance to anticipate the risks of continuing to put pressure on operations as they attempt to rebuild resilience.
Violence in residential living and care settings is a major risk for both residents and staff. This is a risk that comes with huge costs as well as your ability to attract and retain qualified employees. Overall, assisted living facilities and nursing homes typically have one of the highest rates of non-fatal occupational violence, with 6.8 cases per 100 full-time workers, with nursing assistants at the highest risk. It has been.
The Joint Commission has been guided to issue new workplace violence standards that require updated safety measures, identification of triggers and mitigation plans, including the implementation of appropriate physical protective measures, for some of the environments they certify. I was. The depth and scope of the problem can affect the cost of general liability and workers’ compensation insurance. Creating a safe environment puts underwriters at ease and gives the workplace a sense of security and peace of mind when it’s most needed.
On the other side of the risk are the worsening side effects of global warming. Preparedness for disasters, such as hurricanes and the floods they cause, tornadoes and wildfires exacerbated by drought, is more important than ever.
Pete Reilly is Practice Leader and Chief Sales Officer for the North American Healthcare practice at global insurance broker Hub International. Gerald Stoll, he serves as Vice President of Medical Affairs for HUB Northeast and Jordan Parnell, he is the leader of the Medical Practice Group for HUB Gulf South.
Opinions sent to each McKnights Senior Living Marketplace columns are author’s, not necessarily author’s McKnights Senior Living.
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