The Opening Session at the American Health Care Association Convention in Las Vegas was a mix of overflowing enthusiasm and reasonable concern about reimbursement issues. It appears that the 11.1% CMS cut has not caused undo concern in the Nursing Home Industry because everyone understands that it resulted in a windfall profit the prior year. That being said, there is very real and legitimate concern about reimbursement in future years. Here is the gist of the concerns:
- The critics of Long Term Care do not really understand what the industry does, particularly with respect to skilled nursing. The quote of the day was: “Our critics don’t know what we d0.”
- There is a perception that long term care is just a huge money pit and provides little value to society. There is a belief that long term care/senior housing is simply human warehousing, holding the almost dead until the end comes and doing it in an inhumane fashion; and, finally, that these terrible warehouses are run by people who only care about the money.
- There is a lack of appreciation for the fact that long term care communities provide jobs for hundreds of thousands of people, many of whom come from the lowest economic levels of the country, and that, without these communities, the unemployment problem would be much worse.
- There is a lack of understanding that staff in care facilities work hard to make the last days of our most frail seniors as comfortable and pain free as possible. That it is often a long term care staff member who holds the hand of a senior as they take their last breaths.
- They pointed out that, when the Obama Health Care plan was being crafted and debated, virtually every segment of the health care industry had a seat at the table (hospitals, physicians, drug companies, durable medical manufacturers) except long term care.
This analysis of how long term care and senior housing is perceived is right on the money. What I didn’t like was the plan to address these issues. There are a series of short videos that have been made to portray long term care “as it really is.” There are smiling seniors and well-dressed, well-spoken, uniformed care givers . . . see for yourselves . . .
I only wish this were an accurate picture. Some active retirement communities, and even some assisted living communities and perhaps a few skilled nursing facilities do look like this. But most skilled nursing communities and SSI based assisted living communities do not.
Don’t get me wrong, I believe that most skilled nursing communities are doing the best they can with the resources they have. The residents have complex needs that must be managed which is not an easy task. These “feel good” videos actually make the industry look worse, not better.
I would bet that most corporate nursing home executives, administrators and care givers hope and pray they will not have to live out their last days in the facilities they own, operate and work in. (If your facility or facilities are great don’t beat me up: you know what I am talking about.)
The problem is that when you paint a false picture and people then visit a more typical community they are shocked. They have no idea that these buildings, these care teams, are doing the best they can with what the government is willing to pay.
I wish that these videos would paint a more realistic picture of what senior housing/long term care is like. Sure, talk about the dedicated professionals (because this is true) but tell the story of how challenging it is, how close to the edge many communities run because they do not get adequate funding. Then lobby for more reasonable reimbursement and more flexibility in the regulations.
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From LinkedIn Groups
What I find to be a quandry is that the issues that plague the LTC industry are the same issues of concern 30 years (and more) ago. The first being; calling it an industry. The image one would derive is described in the lead article by Steve. The second being an issue opened for discussion a few weeks ago concerning the staffing dilema. Then there is the ever present issue of money and the many avenues that topic can take.
My particular “soap box” happens to be within the Environmental Services Depts. More specifically, Housekeeping and Laundry. Hopefully I will be opening a discussion on this topic soon.
Posted by Arch Fisher
From LinkedIn Groups:
I think the senior housing problem is like the education problem. The solution to the problems lies on both sides. In senior housing we need responsible managers, regulators; on the other side we need responsible families/children who keep on top of problems and don’t just dump-and-run. The media of course love to sensationalize and generalize the exceptions.
Posted by Andy
From LinkedIn Groups:
Steve, thanks for posting! This is a great, albeit a bit sobering, article.
The negative perceptions are right on, especially the one’s pertaining to human warehousing. It’s unfortunate, but many in the mature community share these views. And as a corollary, changing these perceptions and overcoming some of the aforementioned obstacles would work wonders.
The section of article pertaining to truthful communication also resonated with me. In my company’s research, we found that almost every senior, from boomers to the silent generation, wanted truthful and informative information.
The sugar coated and often childish advertising or communications strategies were not perceived very well at all. So your question of the effectiveness of their communications efforts is a great one.
I’m still nascent in this area as well, so please keep the great articles and feedback coming.
Thanks Steve!
Posted by Nick
I am an Occupational Therapist. Here’s my perception after working with the elderly in their homes/assisted livings/SNFs and having my Dad in a nursing home. Every family member knows that the person doing direct care of their loved one has the least amount of education, the most contact with their loved one, and gets paid the least. If your CNAs aren’t genuinely interested in the people they work with and enjoy their job, it shows…. big time. You can have the most beautiful facility in the world but if the direct care staff is aloof and just going through the motions, word will get out. Hire well and invest in your direct care staff, financially, educationally, and emotionally.
From LinkedIn Groups:
I was not at the convention but would like to interject after practicing as a long term care administrator since 1985. Long Term Care facilities have and always will be the “Red Headed Stepchild” of the healthcare continuum. Sad but true most of the dedicated employees are woefully underpaid and overworked. Many of these care givers are stuck in an endless cycle of a sector of healthcare that has always gotten the short end of the stick in funding. There is far more abuse of reimbursement in the home care sector than there ever will be in long term care since it is far more difficult to regulate thousands of home health agencies. Dollar for dollar long term care is still the best bang for the buck when you consider all the services provided in a 24 hour period.
Posted by David
From LinkedIn Groups:
On site care to a higher standard will help. Current mthods of on site care are often below the standard and often with little regard for privacy and infection. The only entity is to encourage on site care through an aleydis center.
Posted by Stuart
From LinkedIn Groups:
Hi Nick — I am glad to hear that your organization’s research continues to indicate the importance of providing seniors truthful and informative information regarding their options in senior living.
Several years ago in a previous marketing director role for a large CCRC, we changed the seminar format from the long-standing “overview” format to “detailed” and began providing seniors comprehensive information that covered the costs of various entrance fee options along with outlining their return on investment and specific examples of their potential nest egg savings and lifetime benefits. The feedback was always positive and sales were through the roof.
I continue to approach CCRC sales in a consultative and educational manner and have had continued success despite the challenging housing market and uncertain economy. I do believe this “truthful and informative” approach is exactly what seniors are looking for, and I appreciate the reassurance that this is still the correct strategy.
Posted by Libby
From LinkedIn Groups:
They need to make them more like home with gardens. Veggies, fruit trees, raised beds, roses, herbs. Make them someplace where nature is prevalent. As a horticulture therapist, I have a much different idea of what the residents truly desire. http://www.robbornstein.com/
Posted by Robert
From LinkedIn Groups:
Libby, I couldn’t agree with you more. I always try to put myself in the other person’s shoes and think in terms of their needs. I believe that you can’t go wrong by being honest and informative.
I found that most in the mature market will also take a greater interest in your products or services if you clearly communicate the benefits relevant to their needs. I also have found the physiological aspects of products to be an important thing to communicate.
Posted by Nick
From LinkedIn Groups:
Robert, I agree. It gives them a purpose. I am a mobile activity person and I go to many “group homes” and large facilities. At one of the small homes they have 3 raised beds. Last year (and I don’t have a green thumb and we live in Arizona) we decided they needed to be filled. We made 2 veggie beds and 1 flower bed. Although we never really understood when to “harvest” we had a great time watching onions etc…grow into magnificent flowers. I know that probably wasn’t supposed to happen, but we were all amazed at the different flowers the veggies produced. One of the residents said she was so happy we planted the gardens because it gives her something to do everyday (she does the watering). My point being, it’s the process and it’s always fun to experiment even if the outcome isn’t what you expected.
Posted by Karen
From LinkedIn Groups:
This is simply because the lawyers/lawsuit/law-firm advertising story has out-shined the AL/CCRC stories about quality senior health care.
Rule #1 – Whoever tells the best story wins, and lawyers/law-firms are very good at using fear and greed as their emotional motivator! Plus, selling fear is EASY (and memorable).
Unless you know how to find, build, format, and DELIVER a great signature story filled with HARD emotional content, subliminal triggers of influence, and persuasive presentation techniques, you and your organization will always find yourselves in last place – and in a defensive position (never enviable when trying to sell senior care).
As a keynote speaker and sales/leadership coach, I teach my clients, “Stop SELLING … instead, offer unique solutions to problems your clients didn’t know they had … and once they know about these solutions … they can’t live without them!”
BUT … you must make them think utilizing your solution(s) was their own idea! [you might find my recent newsletter on SHAPING techniques of value]
“Subliminal persuasion is not getting people to take an action. It is getting them to believe the action you want them to take is their own idea.” – ME
I welcome your comments!
Posted by Matt
Great post Steve. I agree completely except I don’t see any increases in reimbursement coming.
I’m not an economist, but it’s easy to see, the money is all gone. I think we’re just getting a taste of the cuts and regulations our industry and others are going to face.