Healthcare Services in Senior Living and Nursing Homes

The Case for Integration



Residents of senior living and nursing home facilities have substantial health needs and use a great deal of high-cost healthcare services. At the same time, many residents are enrolling in Medicare Advantage insurance plans which increasingly offer capabilities for managing their complex care needs.

These residential care settings offer tremendous potential value to managed care organizations through both economies of scale in reaching enrollees and the supportive services the facilities are already providing residents. Operators and investors need to understand this value and leverage it to diversify revenue sources and drive referrals.

We assessed the scope of the need and opportunity for greater healthcare integration across different senior living settings.


We analyzed the average income, insurance coverage arrangements, health status, and healthcare utilization of seniors in different residential settings: traditional private housing, retirement communities, independent living, assisted living, and nursing homes. We found that within senior living and nursing home settings, many residents struggle with functional and cognitive impairment, and these residents visit the ER and are admitted to the hospital at high rates.

Our analysis shows that nearly a third of independent and assisted living residents are enrolled in Medicare Advantage, indicating an opportunity to partner to find synergies and additional resources for helping high-need residents.


It’s time to recognize the value senior living and nursing home facilities provide by supporting residents with complex health needs. The unique combination of real estate and supportive services represents an embedded value to the healthcare system, particularly for managed care organizations and other risk-holders. There is an opportunity for forward-thinking operators and investors to unlock this value to strengthen the care of residents and improve financial outcomes.

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