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As more senior living operators adopt value-based care models in 2024, challenges persist in scaling these models effectively.
Providers are leveraging data insights to drive growth in value-based care models, but this transition poses significant risks for operators. The alignment of short-term capital expectations with the longer-term strategy of implementing value-based care structures adds complexity to the process.
While progress in value-based care within senior living may be gradual, operators are steadily embracing it with a forward-looking mindset.
According to Solera Senior Living CEO Adam Kaplan, value-based care is a long-term strategy that requires a different timeline compared to investor terms.
A recent SHN survey found that over three-quarters of respondents reported expansion of value-based care models in the past year. This growth included initiatives such as predictive EHR platforms and strategic partnerships to support data-driven decisions.
Senior living operators are turning to established players like Brookdale Senior Living for inspiration, particularly in areas like HealthPlus models tailored for Medicare Advantage plans.
Data fueling value-based transition
Senior living providers are enhancing operations through technology adoption, with a focus on data-driven decision-making for both operational efficiency and value-based care strategies.
Investments in advanced business intelligence capabilities by companies like Life Care Services and Benchmark Senior Living underscore the importance of real-time actionable data for successful value-based care implementation.
Operators are incorporating various wellness concepts and revenue opportunities into their value-based care efforts, with a strong emphasis on data-intensive solutions to improve resident outcomes.
Collaborations between providers and tech companies like Priority Life Care and August Health are driving innovative value-based care initiatives aimed at enhancing care delivery and operational efficiency.
Value-based care alliances like Serviam Care Network and initiatives like the Perennial Consortium are paving the way for senior living operators to navigate the complexities of transitioning to value-based models.
Partnering with payviders and participating in value-based care alliances are strategic moves for operators like Solera Senior Living and Benchmark as they position themselves for future success in the evolving healthcare landscape.
Common challenges arise in growing value-based models
Despite the benefits of value-based care, senior living operators are confronted with various challenges such as resource constraints, staffing shortages, and financial limitations.
Finding viable payment sources and addressing staffing concerns are key obstacles that operators must overcome to successfully transition to value-based care models.
Educating staff and residents about the benefits of value-based care and managing the risks associated with the transition are critical aspects of the implementation process.
Leaders in the senior living industry recognize the need to adapt quickly and embrace a culture of innovation to thrive in a value-based care environment.
By strategically addressing these challenges and leveraging data-driven insights, senior living operators can position themselves for long-term success in the value-based care landscape.
