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Healthcare Reform is Creating Opportunity for Senior Living Providers

Although the Affordable Care Act (ACA) has presented challenges to organizations across the healthcare spectrum, complying with its mandates, especially the directive to decrease hospital readmissions, has prompted senior living communities to expand services and adopt advanced senior living solutions. An unintended but welcome side effect of these improvements is that they are creating several opportunities for business growth.

A long-standing focus on expanded services

Initiatives around enhanced and holistic wellness and “person-centered” care are not new to senior living. In fact, decades ago communities began focusing considerable resources on promoting healthy lifestyles, managing health, and preventing injuries. Their efforts were prompted by two equally important drivers: the desire to increase the safety and well-being of residents, and the need to meet business objectives, such as lengthening the average stay and increasing occupancy.

As part of these initiatives, forward-thinking communities began devoting time and effort to identifying key metrics, and collecting and analyzing related information. This wise investment has positioned them to make a data-driven case for the value of their services today as they look to align themselves with hospitals and engage consumers in the rapidly changing healthcare environment.

Multiple incentives for readmission reductions

Under the ACA, senior living providers now have additional incentives to improve care and slow the so- called “revolving door” between their communities and health systems.

The law penalizes hospitals for poor performance in 30-day hospital readmissions for Medicare beneficiaries by fines of as much as 20 percent.1 Hospitals that face such fines are looking to partner with senior living communities that have implemented effective strategies in this area. Senior living providers that can prove their ability to manage senior health and to intervene to reduce the likelihood of a health issue escalating to a re-hospitalization are looked upon favorably.1

By helping hospitals achieve their objectives, senior living providers benefit from an enhanced reputation and increased referrals. They also can market themselves more effectively to prospective residents and their families, who want the peace of mind that the community will be providing the best possible care. What’s more, in addition to improving their ability to earn future business, providers with effective strategies to reduce the risk of patients’ readmissions will enjoy the more immediate benefit of greater profitability achieved through longer patient stays and higher occupancy rates.

A multi-faceted approach to reducing readmissions

In offering expanded care services on-site, senior living communities may help reduce hospital readmissions in three primary areas. First, there is an ease-of-access component. Logistical challenges can be a significant hurdle for seniors. For example, lack of transportation may keep them from attending follow-up appointments. Providing on-site access to the care older patients need helps them make a successful transition once outside the hospital.

Second, there is an educational component to these services. Seniors who can interact easily and frequently with on-site caregivers are better informed about self-care requirements and better equipped to follow the care plans they were given when discharged.

Finally, there is a technology component. The use of solutions focused on fall detection, medication management, predictive analytics, monitoring and communications may have a significant effect on a community’s ability to manage its residents’ risk of hospital readmissions.

Addressing readmission requirements through senior living solutions

A variety of advanced senior living solutions are available today to help thousands of communities around the country achieve their goals of better protecting residents and limiting re-hospitalizations.

  • Fall detection devices like Philips AutoAlert fall detection pendants can provide access to help, if it detects a fall, when a senior is unable to, giving staff the prompt notification they need to lessen resident lie times and potentially reduce the complications associated with a fall.2
  • Medication management devices and services like the Philips Medication Adherence Service may help reduce readmissions due to dosing errors by providing residents with reminders to dispense their medications at pre-scheduled times. Research has shown that using the Philips medication management dispenser raises monitored patients’ dispensing adherence rates to 98.6 percent.3
  • The Philips CareSage predictive analytics tool can anticipate with a high degree of accuracy which residents may be at risk of emergency transport within the next 30 days. Such data enable caregivers to prioritize care for these at-risk residents, potentially avoiding a re-hospitalization.
  • Intuitive wander management and resident staff communication systems like Philips CarePoint 5.0 help keep seniors from leaving safe areas of their community and enable team members to coordinate activities for more effective incident response.

Turning challenges into opportunities

As the senior living landscape continues to evolve, providers must take steps to expand their offerings and work in concert with hospitals, caregivers, and other partners to facilitate the health and wellness of residents. Those providers who are most proactive and effective in adapting to the changing healthcare landscape will enjoy the most success in the future as they turn challenges into opportunities.

  1. “Re-hospitalizations among Patients in the Medicare Fee-for-Service Program,” (2009, April 2). Retrieved from http://www.nejm.org/doi/full/10.1056/NEJMsa0803563
  2. AutoAlert fall detection does not detect 100% of If able, subscribers should always push their button when they need help. Button signal range may vary due to environmental factors.
  3. When reminded by the Philips Medication Dispensing Service, seniors dispense medication on time 98.26% of the time—Journal of Gerontological Nursing, July 2014.