The disruption of Covid-19 has put more significant pressure on the senior living and care industries to meet the mid-market community’s needs. Torey Riso, the former president and CEO of Blueprint Healthcare Real Estate Advisors, said Thursday at the National Senior Housing and Housing Investment Center 2020. However, the pandemic has also smoothed the slate, providing an opportunity to start again, and It is not considered in the way currently defined—nursing (NIC) Fall Conference.
Stakeholders, operators, and working seniors need to think about partnerships that were not there before, especially partnerships with the healthcare system and capital partners.
The basis for reshaping lies with consumers in the middle market. NIC participated in a groundbreaking study published by NORC at the University of Chicago, Harvard Medical School, and the University of Maryland School of Medicine last year. The study found that by 2029, there will be 14.4 million middle-income seniors in the United States—54% of which will be lacking today. The market price pays for the financial resources needed for high-end housing. Next year, as the oldest baby boomers grow to 76 years of age, many of them lack the resources to buy privately paid senior living at market prices and fail to recover the wealth they lost during the Great Depression.
Bill Pettit, president of Merrill Lynch, said that because seniors in the mid-market lack the resources of their wealthy, market-priced counterparts, this will lead to more savvy shoppers. Merrill Gardens (Merrill Gardens) parent company R.D. Merrill is developing a scalable mid-market model with properties purchased from Blue Harbor in November last year. This involves providing personal payment capabilities to middle-income and middle-income seniors. Provide quality care, and bring an acceptable return on investment for-profit owners and/or operators.
He said that this new brand would be announced later this year, comparable to long-stay hotels, and residents can choose meals and health activities according to their needs. For example, residents can participate in a meal plan, but they can also choose to cook their meals. In high-end housing with market interest rates, wealthy residents expect (if not needed) dining services. The a la carte service will keep seniors in the mid-market active and place at a more extended age while retaining their reserves for emergencies and developing into higher-level healthcare.
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John Cochrane, President and CEO of HumanGood said that fully integrated companies have clear boundaries in providing solutions to mid-market challenges. The non-profit organization headquartered in Pleasanton, California, owns and manages 21 life plan communities and 95 low-income high-end housing properties on the West and East Coasts.
HumanGood is a vertically integrated organization. Cochrane believes that it can use the company’s development and operating experience at both ends of the market to meet the middle market’s needs. He said the problem is that when the industry should focus on subdividing a larger group of people, the industry sees the middle market as a whole problem.
Looking ahead, the industry, especially the non-profit sector, must consider more complex transactions from the perspective of capital positioning. Bond financing may not be enough to expand the customer base. Cochrane saw the situation after the pandemic. Non-profit organizations set their sights on vehicles they didn’t have before and became interested in risks. One possible approach involves mixed-use intergenerational development. HumanGood hopes to use its expertise in low-income development and property management as a starting point for developing high-end housing in the mid-market.
Health care solutions The pandemic has consolidated the position of the elderly in the field of healthcare. The life of the elderly in the future will involve better integration of health care services into the community. CareMore Health senior vice president Jim Lydiard (Jim Lydiard) said that the high-end housing in the mid-market would be the same. CareMore provides healthcare services to 180,000 members nationwide.
Elderly people who participate in CareMore’s Touch program will receive a baseline health assessment called “Health Start.”. At this time, CareMore can deploy healthcare personnel and services to ensure residents feel safe in their home environment and comfortable instead of being sent to the hospital.
Currently, the CareMore plan has been integrated into the Medicare Advantage plan, but other payment mechanisms are under development. Platforms such as CareMore will benefit from expanding the next-generation responsible medical organization (ACO) model approved by Medicare and the Medicaid Services Center (CMS). When the expansion plan takes effect next spring, seniors can participate in the plan without changing their health care plans. They can continue to use traditional pay-as-you-go medical insurance. As far as their preferred primary care doctors, specialists and hospitals are concerned, their benefit structure or network will not change.
R.D. Merrill’s upcoming mid-market brand will adopt a similar approach. The company is negotiating with multiple home health service providers to identify major partners that can provide services to residents in multiple communities, provide better medical services and results, and reduce costs. With a trustworthy partner, elderly families moving into the community will be confident that Merrill Lynch also has the best interests of their loved ones.
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