The Orchards at Bartley Assisted Living’s all inclusive rate structure has improved customer satisfaction, simplified billing processes, and earned the program recognition as an ALFA 2011 Best of the Best Program to Watch in the Sales & Marketing category.
While leading customers through the sales process at The Orchards at Bartley, the sales staff used to hear all about the bad experiences families had had with sudden rate increases at other senior living communities.
So The Orchards at Bartley decided to do its customers a favor by simplifying its rates so that room and board, levels of care, and most ancillary services fit under an all-inclusive fee schedule. It also implemented a 30-day money-back guarantee.
The result has been a win-win for customers and the community. “It was the voice of the customer that started this,” says Uphold. “We also recognized that we could benefit because it’s an easier billing process.”
Part of the problem with traditional a la carte or tiered pricing, says Uphold, is that seniors entering a senior living community nowadays are likely to be older and frailer than their predecessors 10 years ago. Since most providers require the fees to track with residents’ needs, it’s not uncommon for fees to start to increase in less than six months.
The Orchards at Bartley has found that residents and families don’t mind paying extra for the comfort of an all-inclusive fee because it eliminates surprises and makes financial planning easier. “It is very easy for prospective residents and families to understand the value for services received,” says Uphold.
The all-inclusive fee simplifies the sales process and has accelerated the accounts receivable. Billing complaints have all but dried up. The fee structure also has helped with care delivery, by removing resistance when a resident requires a higher level of care.
After the change took effect last year, 60 percent of residents and 77 percent of family members rated their satisfaction with billing accuracy as “excellent” compared to just 13 percent and 30 percent, respectively, in 2009. Interestingly, 52 percent of residents and 33 percent of families in the same survey rated the community’s charges as “excellent” compared to its competitors, a significant change from 2009, when less than 10 percent of residents and family members rated it as favorably.
In addition to improved customer satisfaction, The Orchards at Bartley has experienced an increase in average daily census from 67 percent before the change occurred to 76 percent thereafter. The daily per-resident revenue has increased, and no one has requested their money back.
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