If you are a traditional senior living provider, from independent living to skilled nursing you can fear this new model as competition or see them as an additional resource that can feed you residents.

By Steve Moran

Maybe the way I published this companion article is backward.  A few days ago I published an article titled “I Confess . . . I got it Wrong” where I described a conversation about transitional care I had with Zeke Turner.   By the time I finished writing that article it dawned on me there was a need for more of a conceptual look at transitional care.

Mainstreet

When Mainstreet was first founded, they saw their core competency as having evolved this new transitional care concept, finding perfect markets and designing beautiful functional buildings that would allow operators to create an amazing rehabilitation experience for residents.  

What they have found is that often operators continue to struggle with the big idea of transitional care which is exclusively a short stay concept.  Except for the fact that the center is licensed as a nursing home, it really nothing like a long term care community.   It turns out that it looks more like a hospital than a nursing home . . .  sort of. 

This paradigm shift is really tough for traditional long-term providers.

They currently have 30 transitional care centers in operation.  They will begin or have already begun construction on 30 additional centers this year.  There future development roadmap looks to have 50 new starts a year in 2016 and beyond. 

No Pigeon Hole

One of the hardest parts of building a new widget is knowing how to describe what it is like and what makes it different.   Think of Transitional Care as a new kind of widget that looks sort of like this:

  • Based on the kind of services it provides to residents it is more like a rehabilitation specialty hospital or subacute hospital than it is like skilled nursing.
  • They are licensed as skilled nursing facilities, but in terms of operating philosophies and expected treatment outcomes, look more like at hospital.
  • Stays are always short, essentially never more than 10 – 28 days.
  • Almost all of the residents represent earlier discharges from hospitals and individuals who are being discharged to home care.
  • A great experience.  Think almost spa-like
  • 90% of residents will go back home.
  • They have been able to demonstrate that they are not negatively impacting the existing long term care providers.
  • Hospitals love the model, because they can
  • More like a hotel in terms of occupancy rates can vary widely
  • Operators are running cash flow positive at 65%
  • Staffing is very different number of people and skill level.
  • 3-4 hours of rehab per day
  • 9-10 admissions every day.
  • Marketing of the community is very different

If you are a traditional senior living provider, from independent living to skilled nursing you can fear this new model as competition or see them as an additional resource that can feed you residents. 

They should also be seen as the ideal place to send your residents who need intensive rehabilitation therapy, knowing that when the resident comes back to you, they will be stronger, easier to serve and poised to have a longer length of stay in your community.