The New Healthcare Agenda for CCRCs & Life Plan Communities 

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ATIWebinars
02/26/2024
AUTHOR – ATI Advisory

Summary

Fred Bentley, Managing Director of ATI Advisory’s Post-Acute/Long-Term Care & Senior Living Practice, moderated a discussion on the healthcare opportunities and challenges facing continuing care retirement communities (CCRCs) during the webinar, “The New Healthcare Agenda for CCRCs & Life Plan Communities.” Panelists present were Phil Chuang, Senior Vice President of Healthcare Services at HumanGood; Nicole Fallon, Vice President of Integrated Services & Managed Care at LeadingAge; and Ted Goins, President and CEO at Lutheran Services Carolinas.  

Labor Shortages and Payment Challenges  

The conversation first focused on the challenges CCRCs face in running their nursing homes, which stem from chronic workforce shortages, steep increases in labor costs, and inadequate reimbursement from state Medicaid programs and Medicare Advantage plans. The panelists noted that, while some CCRCs have opted to exit this line of business, most CCRCs want to honor the commitment to their residents to offering nursing home services on their campus. To do so, CCRCs will need to right-size their nursing homes and develop creative partnerships with other CCRCs and nursing home operators to generate economies of scale.

Opportunities in Home- and Community-Based Services    

CCRCs are expanding into home- and community-based services. Panelists discussed successful experiences with Programs of All-Inclusive Care for the Elderly (PACE) and highlighted other service opportunities. They emphasized the importance of diversification and strategic negotiation with managed care to capture the value of their services. 

Navigating Market Dynamics and Value-Based Care

Bentley and the panelists underscored the importance of understanding market dynamics and evolving healthcare payment models, particularly in managed care. Panelists suggested building relationships with MA plans and leveraging value-based care initiatives to enhance revenue and service delivery. They emphasized the need for CCRCs to adapt to these changes and proactively position themselves for success in the shifting healthcare landscape. 

Conclusion

The discussion on CCRCs’ role in healthcare highlighted challenges like labor shortages and payment complexities, alongside opportunities in home- and community-based services. Strategic adaptation to market dynamics and value-based care models is essential for sustainable operations and quality care delivery. CCRCs must stay agile and proactive to thrive in the evolving healthcare landscape. 

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