Solera CEO: Senior Living Operators Must Embrace New Models to Succeed in Value-Based Care
Solera Senior Living CEO Adam Kaplan believes that the future of senior living operators lies in embracing value-based care. He sees a bright future ahead for those who are willing to evolve their care models to maximize the opportunities presented. Kaplan envisions a care ecosystem that will evolve into a hybrid model of in-community care and virtual care.
In a recent episode of the Senior Housing News Transform podcast, Kaplan highlighted the importance of a robust care model, high-performing partners, and data that clearly demonstrate the benefits of value-based care. He emphasized the need for senior living operators to focus on achieving better outcomes such as lower ER visits, reduced hospitalizations, and decreased long-term care utilization.
Despite the potential benefits of value-based care, Kaplan acknowledged that there are challenges ahead. One key challenge is getting capital providers to understand the longer timelines associated with value-based care adoption compared to typical real estate investment cycles. Many real estate investors are uncomfortable with the uncertain financial benefits of value-based care, making it difficult to secure funding.
Over the past 12 months, Solera has seen improvements in average occupancy rates and net operating income. Moving forward, Kaplan stated that Solera plans to pursue value-add acquisitions to its senior living portfolio and expand its third-party management operations. The company is also looking to expand its presence in the Washington D.C. metro area with the opening of a fourth Solera community.
Highlights from Kaplan’s Podcast Appearance:
- Reflection on Solera’s Operations in 2024: Kaplan noted that the industry has made significant progress towards thriving in 2025, attributing this success to overcoming challenges such as oversupply and capital influx in previous years.
- Near-Term Growth Plans: Solera is focusing on acquisitions, third-party management, and ownership and management platform acquisitions. The company is looking for properties with a clear path to stabilization and is actively expanding its presence in the D.C. area.
- Where Solera’s Growth Could Take Place Next: While Solera is open to opportunities in various markets, they are particularly interested in expanding in the D.C. area and are also exploring acquisitions in Pennsylvania.
- On Value-Based Care: Solera has been integrating and coordinating healthcare services within its buildings and is exploring partnerships to improve healthcare outcomes for residents.
To listen to the full podcast episode featuring Adam Kaplan, subscribe to the Transform podcast via Apple Podcasts or SoundCloud.
