Non-profit senior living operators have adjusted their technology spending priorities in 2024, with fewer dollars allocated to community infrastructure compared to previous years.
According to the latest Ziegler CFO Hotline report on technology spending, released every two years with input from LeadingAge’s Center for Aging Services Technologies (CAST), senior living organizations are making fewer investments in communication infrastructure.
In 2024, only 58% of respondents identified infrastructure for technology as among their top five investments, down from 74% in 2022. The decline in investments in infrastructure seems to be due to a lack of returns on investment.
Other top areas of investment in 2024 include electronic medical and health record systems, workforce and staffing scheduling systems, electronic point of care and point of service documentation systems, and access control systems.
40% of respondents plan to invest in data analytics tools in 2024, with access control tools and electronic medical record systems also ranking high for planned investment.
Only 13% of respondents reported using AI robotic technology, with concerns over ROI in utilizing such technology in dining services and other areas of senior living operations.
Although budgets for technology spending have been increasing over the past two years, with an average capital budget dedicated to technology at 8.8% in 2024, respondents foresee a higher demand for technology investment in the future.
As one respondent stated, “Technology needs to be more than the standard practice of allocating 3% of budgets. As our reliance on technology grows, we must invest more to keep our data safe and effectively utilized.”
