The pandemic has certainly ushered in a new set of challenges for senior care providers. However, the outlook is positive because providers can work with their risk managers to will find ways to adapt and shift their strategies by focusing on creative new ways to support residents’ families and staff. This blog post will touch on the top 3 challenges you can prepare for in 2021.
- COVID-related occupancy challenges
The senior living industry is becoming even more competitive since occupancy rates have been dropping due to the COVID-19 pandemic. Although the long-term effects of COVID-19 are still unknown, providers are adapting and addressing the current needs of their staff and residents by prioritizing frontline health care workers’ needs in order to keep seniors safe and healthy, while still facing challenges surrounding labor and supply shortages.
- Workforce Issues
Statistics show turnover rates are anywhere from 45-70 percent and upwards for most senior living communities with $2,500 being the average cost to replace a skilled employee. Turnover is an industry-wide challenge and the importance of offering low to no-cost voluntary benefits is unavoidable. As a top insurance brokerage with a specialized senior living practice, we've seen first-hand how voluntary benefits can be a game-changer for employees and your HR team.
- Residents’ Financial Status
Incoming and prospective residents have different financials than the industry has previously encountered. Trends indicate that older adults will not have the financial resources to pay for senior housing, but at the same time their incomes will be too high to qualify for Medicaid, putting them in a predicament in terms of where they’ll spend their golden years. Senior living communities will have to respond and prepare for a more affordable option for the aging population.
To learn more about the senior living industry, contact your local Marsh & McLennan Agency representative.