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, which includes the following basic steps.
1. Assess Current Technology
The first step is to conduct an audit of the property’s current set-up, identifying where outdated or redundant systems are causing inefficiencies or duplicate efforts. The effectiveness of the following six foundational technologies should be the focus of this audit:
- Customer relationship management (CRM) software
- Electronic health records (EHR)
- Emergency call platform
- Payroll and human resources system
- Accounting software
- Resident engagement program
Before adding new technologies, operators should ask themselves three questions: 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 is worthwhile to take the next step.
At this stage, it is important for operators to identify what results they expect from a new system, how they will pay for it, and how they will address staff members’ concerns about adjusting to the new system.
2. Initiate a Pilot Project
Rather than overhauling the entire technology stack all at the same time, operators should identify one system or process to focus on first. Starting with a system that is not resident-facing, such as payroll, can lower the risks and give staff more time to adapt to new workflows.
Lessons learned from the pilot project, which should last three or four months, can then be applied to streamline the approach for subsequent technology changes.
Key to the process is a strong internal team that is on board with making a change. When assembling a team, operators should include staff from as many different business units as possible. If only one unit, such as IT or finance, is perceived as driving the change, it will be easier for the rest of the staff to avoid or ignore it.
3. Align Stakeholders
Capital partners can provide valuable input on technology decisions. AEW Capital Management is a long-time owner of senior housing properties. 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.
4. Plan for Interoperability Challenges
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 can help solve the interoperability problem to an extent, but operators must use their position as buyers to push vendors to innovate, integrate, and move forward.
The future belongs to senior living communities that successfully adopt and integrate the latest technology. The best way to get there is to follow a roadmap that has a proven track record.
Note: The roadmap described above was presented during the “Strategic Roadmap for Tech Acquisition and Deployment” panel discussion held at the NIC Fall Conference in Washington, DC, on September 24, 2024.