With a shortage of caregivers and a growing number of older people who need assistance, state-of-the-art technology is essential to the success of senior living properties. The right software platforms can enable the efficient delivery of services and drive positive returns.
But with so many technology offerings, it can be confusing to sort through the options to find the best solution. “Operators need a roadmap,” said Joe Daniels, vice president of business development at Direct Supply, a senior living products company. Daniels led a panel at the 2024 NIC Fall Conference on how to evaluate, pilot and implement new technologies.
“Where do you start?” asked Daniels. First, he said, operators need six foundational technologies to run their business:
- customer relationship management (CRM) software,
- electronic health records (EHR),
- emergency call platforms,
- a payroll and human resources suite,
- an accounting system, and
- a resident engagement program.
When operators consider adding new technologies, they should ask themselves three questions, said Daniels. Will the technology increase revenues? Will it decrease expenses? Will it improve resident outcomes? “If the answer is ‘yes’ to two of those questions, then it could be worthwhile to take the next step,” he said.
Pilot
The next step is a pilot of three to four months. Operators should determine what results they expect, how to pay for the system, and how to handle the introduction of a new system to staff members who might resist change.
Morgan Graphman, director of business intelligence at Ascent Living Communities, led the evaluation and implementation of switching out 11 technology systems over 24 months. “We looked at every part of the technology stack,” said Graphman. “We evaluated what we wanted the system to do.” But, she admitted, “It was very overwhelming.”
Key to the process was a strong internal team that was on board with making a change. “Our entire community team really came together,” Graphman said.
Ascent switched out the CRM system first. “We wanted to start with something that wasn’t resident facing,” said Graphman. “That gave us a little more leeway on making mistakes on the backend.”
The switch was successful and had a direct impact on the business. It also gave the team the confidence to move forward with other technology changes.
Align Stakeholders
Capital partners can provide valuable input on technology decisions. AEW Capital Management is a long-time owner of senior housing properties. “Operators want to hear what we’re seeing elsewhere in our portfolio,” said Jennifer McGurty, AEW’s head of senior housing asset management/director.
AEW recently conducted its second annual operator survey. Respondents were most interested in technology related to fall management, resident engagement, and robots. Obstacles mentioned included costs, return on investment, and staff training.
Innovative solutions are emerging to integrate real estate, technology, and healthcare. For example, Senior Living Transformation Company (SLTC) was launched about a year ago by investor Arnold Whitman, head of Formation Capital. SLTC provides properties with long-term capital for state-of-the-art technology, robust healthcare services, and community engagement.
“We have built software that brings together data to create operational dashboards,” said Chip Gabriel, partner at SLTC. He noted that data collection is key to the value-based healthcare system that is being adopted by Medicare.
About a year ago, SLTC bought its first project, a 115-unit, 25-year-old assisted living and memory care project with deferred capital maintenance. “We’ve learned a lot,” said Gabriel.
System integration and implementation has been slow. “Don’t do too much too fast,” Gabriel advised. He suggested an ongoing evolution as the best approach to staff training. The focus should be on how to make their jobs easier.
Interoperability is a big challenge. Operators struggle with software systems that don’t communicate with each other. Nurses and caregivers may have multiple log ins to enter data into different systems—a big time waster.
Artificial intelligence could help solve the interoperability problem, according to Arick Morton, CEO at NIC MAP Vision. But that job will most likely be managed by technology vendors. “It’s a key imperative,” he said.
Graphman noted that operators must use their position as buyers to push vendors to innovate, integrate, and move forward.
Morton said that AI will eventually become ubiquitous. But, for now, operators can integrate AI into certain systems to help employees become as efficient as possible. “Think about how to deliver actionable insights,” he added.
Graphman emphasized the key role of the internal staff. “If you don’t have a good tech staff to facilitate the use of AI, it won’t work,” she said.
The experts agreed that the future belongs to senior living communities that successfully adopt and integrate the latest technology. The best way to get there? “Follow a roadmap,” said Daniels.