For a lot of senior dwelling operators, increasing into dwelling care looks like a pure development — and for good cause.
Residence care presents a worthwhile alternative for operators to increase companies and entry new income streams. Because the previous adage reminds us, nonetheless, it’s often the second mouse that will get the cheese. Put one other method, some operators are studying the onerous method that dwelling care could also be an idea that’s forward of its time.
Think about Atria Senior Residing’s current resolution to shut its New York-based dwelling care subsidiary. Initially launched to boost the synergy and help amongst its 30 assisted dwelling communities within the metropolitan space, the house care division finally fell in need of expectations.
This exit is likely to be extra of a strategic retreat than a misstep. By doubling down on its strengths — working one of many largest senior dwelling portfolios in the USA and Canada — the corporate seems to be mitigating danger.
Nonetheless, this growth additionally would possibly function a cautionary story.
Usually talking, growth typically is important for progress. But it surely can also result in overextension — significantly if it includes a sector similar to dwelling care, which has just a few issues of its personal. Reimbursement complexities with Medicaid, Medicare and personal payers proceed to be vital hurdles. Persistent points similar to fraud, staffing shortages and high quality of care considerations have led some to liken dwelling care to the Wild West.
That’s to not say dwelling care is a nasty thought. Actually, for a lot of operators, it’s a logical subsequent step. Atria’s expertise, nonetheless, underscores the significance of timing and cautious execution.
We is likely to be witnessing the early levels of what might turn out to be a strong mannequin for senior dwelling, however early movers face appreciable challenges that would depart them bruised earlier than the mannequin is totally refined.
Within the meantime, it could be wiser for some to let others take the dangers. In spite of everything, the cheese isn’t going wherever.
John O’Connor is editorial director for McKnight’s Senior Residing and its sister media manufacturers, McKnight’s Lengthy-Time period Care Information, which focuses on expert nursing, and McKnight’s Residence Care. Learn extra of his columns right here.
