Has your organization developed a strategy to prepare for the trends that can impact the senior living landscape in 2019?
If not, there could be major operational and financial implications. Workforce shortage and payment reform are two of the key issues which could radically shape the aging care continuum.
An ongoing caregiver shortage and escalating benefit costs has been compounded over the past year by competitive labor markets. Senior living providers will continue to face enormous pressure to recruit and retain workers while staying within budgetary constraints. With the staffing dilemma growing ever more severe, it will become clear that providers need a shift in mindset when it comes to workforce. An engaged workforce is critical to increase employee retention, allowing them to enhance the level of quality, customer satisfaction, and financial performance.
To survive and become more responsive to staffing peaks and valleys, senior living providers are implementing real-time labor management systems which allow staffing to be quickly and accurately adjusted on a patient census which will become essential for managing labor costs and productivity
Another option to consider would be to share staff and centralize back-office functions, allowing care centers to focus on what they do best – high quality patient care and service.
The October 2019 transition to the Patient Driven Payment Model (PDPM) will demand that providers enhance operational efficiencies and focus on healthy outcomes. The Centers for Medicare & Medicaid Services (CMS) payment reform for skilled nursing facilities (SNFs) and home health agencies (HHAs) focuses on replacing therapy-driven payment with payment that is based on patient characteristics and anticipated resource needs during a patient’s stay. PDPM assigns every resident a case-mix classification that drives the daily reimbursement rate for that individual.
PDPM will impact the delivery of therapy in the following significant ways:
With the proposed October 2019 implementation date, it’s important to start laying the groundwork now for the changes. The following are critical to success under PDPM:
Developing an agile organization with competent employee talent will be critical with the changing demands of a senior living organization’s shift to meet the demands of today’s consumer. In addition, planning for the impact PDPM will be an essential element of a SNF’s future success.
The above trends will impact senior living providers in 2019. We recommend you consider the following: