Senior living providers from across the country gathered for the annual Ziegler Greystone Executive Symposium 2024 – a two-day event for senior living professionals to network with other growth-oriented organizations and discover innovative strategies to adapt and thrive in the senior care space.

Thursday and Friday featured a variety of educational sessions and networking opportunities. Attendees gathered insights on a variety of topics, including trends impacting expansion and redevelopment, strengthening operations, and improving market positioning given the current financial outlook.

Key Information Shared:

• The senior population age 75 and older in the US will increase 31% between 2020-2030, with 17 million more people aging into this group during this timeframe.
• By 2030, the industry will need to see a $400 billion investment to complete the required new development to meet the anticipated demand; assuming an 11.3% penetration rate, this translates to 392,000 additional senior housing units needed (NIC Map Vision).
• Providers need to grow to meet this demand. 78% of attendees are actively seeking redevelopment and expansion opportunities, with 65% reporting committed board members ready to proceed.

How are growth-oriented organizations adjusting and readjusting to meet the opportunity?

Key Takeaways:

1. Independent living expansions and new campuses continue.
   • As construction costs and wage rates continue to rise, providers are increasing the number of planned independent living units to add scale and spread the fixed costs while meeting market demand.
   • Flexible planning assumptions allow providers to adapt to the rapidly changing cost environment.
   • Demand for larger units continues, with cottages increasingly becoming a component of the unit mix.
   • More new campuses exclude nursing as part of the first phase and some providers are embracing the age-in-place concept.
   • Satellite independent living campuses leverage the investment in existing healthcare infrastructure and can often be developed on smaller parcels of land.
2. Redevelopment of existing campuses remains a key priority among providers as they look to serve today’s consumer.
   • Providers are redefining the delivery of healthcare services by downsizing and/or decertifying nursing and converting to high-acuity assisted living.
   • Assisted living apartments continue to become more residential with the inclusion of kitchens with full-size refrigerators, induction cooktops, stackable washer/dryer, walk-in closets, and bedrooms sized to accommodate a queen-sized bed.
   • Investment in dining and fitness/wellness amenities is priority.  Providing multiple dining venues including enhanced grab-and-go, takeout, and bars is popular.
3. Secure land early and often.
   • Whether providers are looking to expand or redevelop an existing campus, or create a new campus, identifying viable sites is key. Providers are seeking land for expansions, new locations (second campuses), and satellite campuses.
4. Providers are modifying pricing and resident service programs to maximize revenue and provide choice for the consumer.
   • A strategic pricing analysis helps align pricing with the market to ensure balance between monthly fees and entrance fees.
   • Offering multiple alternatives in monthly service fee and entrance fee price and refundability continues.
   • Dynamic, individual unit pricing for view, proximity to commons and location, among others, can help optimize occupancy.
   • Providers are adapting the traditional type A contract to limit financial exposure by moving to an equalized rate, healthcare line of credit, or second person transfer rate.
   • Resident programs are being adjusted to replace cable television service with high speed internet and provide flexible service dollars in lieu of traditional dining dollars.
5. Providers are expanding service lines to incorporate home- and community-based services.
   • Adding home- and community-based services is one option to both diversify revenue and expand services.
   • Integrating home- and community-based services within an existing CCRC/life plan community can ensure continuity of service to residents and capture margin that otherwise may be earned by other entities.

Planning has already begun for the 2025 Ziegler Greystone Executive Symposium. If you are a growth-minded provider, we hope to see you there.