Nursing Home Challenges

According to a report by the American Health Care Association and National Center for Assisted Living (AHCA/NCAL) in April 2022, more than 1,000 nursing homes have closed since 2015.  This breaks down to 776 closures before the COVID-19 pandemic and 327 closures during the pandemic.

The same report also projected 400 nursing homes to close in 2022 based on financials at the time.  While the Centers for Medicare & Medicaid Services reported 135 nursing homes closing in 2022, it is believed the number could be higher.  This is due to possible discrepancies between the time a closure plan is submitted by a facility and its full execution to be listed in the federal database. 

Staffing shortages and low reimbursement have long been recognized as factors for nursing home closures even before the pandemic.  Rising wages and increased operation and maintenance costs in recent years exacerbated the situation, especially in rural areas. 

The Impact of Nursing Home Closings

These closures resulted in former residents transferring to another facility, which in most cases, was farther from home.  Some even must move twice after the first nursing home they transferred to subsequently closed.  The process could also take weeks as social workers look for placements so a patient might find themself staying in a hospital in the meantime.  Conversely, some nursing care facilities are keeping beds vacant because they don’t have enough workers. 

Amidst these challenges, the need for long-term care grows with baby boomers joining this group.

Nursing Home Alternatives

While the pandemic put a spotlight on the difficulties faced by the nursing care industry, it also opens opportunities for reforming and improving nursing homes.  It also paves the way for exploring nursing home alternatives, such as in-home care for seniors.  However, home care may prove to be the more expensive option and while it offers more personal and tailored assistance, you might have a senior who prefers or thrives more in a group setting like the one offered by assisted living communities. 

Then there are group homes and family-style nursing homes, which are both small-scale options for assisted living. While a typical nursing home holds over 100 resident beds on average, a group home can house between five to 10 people (or 20, depending on the state) while family-style homes host 10 to beds. These setups allow for more personalized care and a higher staff-to-client ratio in a sociable, homelike setting with home-cooked meals.

Due to being smaller in scale and not as advertised as regular nursing facilities, most group homes might slip past the radar of older adults or their loved ones seeking assisted living.  With well-developed branding, however, smaller-scale assisted living communities can stand out even from the shadows of larger facilities and get their message across better to the seniors most suited for the living arrangements they offer. 

MDSA can help you develop your branding, thanks to an array of services such as Brand Development Research and Segmentation Studies backed by over three decades of experience.  Whether you are a smaller residential care home trying to get the word out or a larger assisted living community looking to reach the ideal senior or even the skilled nurses you need, we can help you find the right market research solution for your branding needs.   

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