The Senior Living Executive Conference April 29 – May 1, 2024, in Phoenix, AZ, included a compelling session titled “Value Creation for the Healthcare Continuum: A Review of Senior Housing’s Impact as Told by Data and Stories.” The session, highlighting the critical role of value-based care in the senior living industry, featured insights from Alan Fairbanks, MHA, President of the Value-Based Care Alliance at Serviam Care Network, Dr. Justin Schram, Co-Founder and Co-CEO of August Health, Mark Price, CEO of Curana Health, and Stephanie Boreale, Director of Health Strategy at Watermark Retirement Communities. Their collective expertise painted a comprehensive picture of how value-based care is transforming senior living communities.
Why Value-Based Care in Senior Living?
The session began with a discussion on the motivation behind adopting value-based care in senior living. Alan Fairbanks, an operator at Bickford Senior Living, emphasized the mission-driven aspect of this care model. For Fairbanks, value-based care represents an opportunity to transform how seniors are cared for in America. His experience at Bickford showed that proactive care significantly improves resident outcomes, reduces hospitalizations, and enhances overall well-being.
Mark Price shared his extensive experience with value-based care in other settings and expressed his belief that senior living is uniquely positioned to benefit from this model. He highlighted the integrated ecosystem of medical, social, and hospitality services in senior living as an ideal environment for value-based care to thrive. Stephanie Boreale, from Watermark Retirement Communities, added that value-based care allows for a more holistic approach, integrating well-being aspects that are often overlooked in traditional care models.
Dr. Justin Schram, with his background in internal medicine and long-term care, underscored the importance of preventing unnecessary hospital transfers. By combining residential care with proactive medical oversight, he argued that senior living communities could achieve outcomes difficult to replicate in other healthcare settings.
The Goals of Value-Based Care
The panelists agreed that the primary goals of value-based care are to improve health outcomes and operational metrics. By focusing on what matters most to residents and building personalized care plans, senior living communities can enhance both individual and population health. This involves measuring positive outcomes like more healthy, happy days at home and reducing adverse events such as falls and hospitalizations.
The integration of various care components into a cohesive, holistic offering is key. Residents are not looking for more healthcare services but for better health outcomes. Simplifying the care experience and ensuring all team members work together towards common goals can significantly improve resident satisfaction and health metrics.
Real-World Impact
The session provided concrete examples of the positive impact of value-based care. Alan Fairbanks shared data from Bickford Senior Living, where the implementation of value-based care led to a 10% reduction in weekly ER visits and a 55% reduction in falls with injuries. Additionally, resident happiness increased by 25%, employee satisfaction doubled, and occupancy rates rose from 89% to 95%. Financially, these improvements translated to an annual NOI increase of over $3 million for the five communities involved.
Stephanie Boreale echoed these successes with data from Watermark Retirement Communities. Their onsite clinics resulted in a 43% reduction in hospitalizations, a 30% reduction in falls, and a 43% reduction in polypharmacy. These outcomes underscore the potential of value-based care to enhance the quality of life for residents while also benefiting the community’s operational and financial performance.
Operationalizing Value-Based Care
Implementing value-based care requires a shift in mindset and operational practices. Both Fairbanks and Boreale emphasized the importance of proactive care and the need to anticipate and prevent adverse events before they occur. This involves monitoring various indicators such as meal consumption, activity levels, and social interactions to identify and address potential issues early.
A crucial aspect of this approach is the use of technology and data to inform care decisions. Dr. Justin Schram highlighted the importance of real-time data and systems that can alert care teams to residents at risk. This proactive approach allows for timely interventions that can prevent unnecessary hospitalizations and improve overall care outcomes.
The Role of Primary Care and Partnerships
The panelists also discussed the importance of primary care and partnerships in value-based care. Having dedicated primary care physician partners who understand and practice within a value-based care framework is essential. These partnerships enable coordinated care and ensure that residents receive the best possible healthcare experience.
Stephanie Boreale shared Watermark’s strategy of creating a patient-centered care model that positions the community at the center of care delivery. This involves integrating medical services, nutrition, movement, and programming into a cohesive care plan. By partnering with best-in-class providers and ensuring ease of access to care, Watermark has seen significant enrollment and positive outcomes.
Financial Considerations and Future Directions
The session concluded with a discussion on the financial aspects of value-based care. Mark Price explained that all senior living residents are Medicare beneficiaries, and by 2030, all will be in value-based care programs. The key is for communities to decide whether they want to be part of these programs and capture the value they create.
Price recommended having strategies for both original Medicare and Medicare Advantage. While the clinical model remains the same, the approach to capturing value differs. Original Medicare requires participation in programs like ACOs, while Medicare Advantage involves contracting with private plans. Having a comprehensive strategy for both ensures that communities can maximize the benefits of value-based care.
The insights and experiences shared during this session at the Senior Living Executive Conference underscore the transformative potential of value-based care in senior living. By focusing on proactive, holistic care and leveraging data to inform decisions, senior living communities can significantly improve health outcomes and operational metrics. The successes of many senior living communities serve as compelling examples of what can be achieved with a committed approach to value-based care. As the industry moves toward this model, the opportunities for enhancing the quality of life for seniors and improving community performance are immense.
Mark your calendar now to attend the Senior Living Executive Conference 2025 taking place May 19-21 in Tampa, Florida.
