NIC MAP Releases the First Intra-Quarterly Data Set

NIC has launched initiatives to provide seniors housing data on an accelerated timetable, and announces the release of NIC MAP® Intra-Quarterly Data.

The COVID-19 pandemic has created an urgency for insights on data and trends in the seniors housing and care sector. NIC has long held that transparency, accuracy, and timeliness are key factors for well-informed decision-making.In response to the quickly developing situation presented by COVID-19, therefore, NIC has launched a number of initiatives to provide relevant data on an accelerated timetable, including last week’s release of NIC MAP® Intra-Quarterly Data.

The NIC MAP Data Service team, working with diligence and passion, has produced a new monthly time series. The April data, released May 19, marks the inauguration of the new NIC MAP Intra-Quarterly Data series. 

Monthly Reporting of NIC MAP Data

With the launch of Intra-Quarterly Data, the NIC MAP Data Service will now report three-month rolling time series data on a monthly basis. The data represents performance for the three most recent months, labeled as the final month for the reported period. The rolling period for April 2020 covers February, March, and April 2020. This first data release includes 13 months of three-month rolling data on stabilized occupancy for both seniors housing and nursing care properties. The data series begins in April 2019 and is reported for the Primary Markets, Secondary Markets, and other aggregated geographic levels. 

The NIC MAP Intra-Quarterly Data will be delivered as an Excel file for NIC MAP clients and will also be featured in NIC’s Intra-Quarterly Snapshot, a new monthly publication offering highlights from the data. The Intra-Quarterly Snapshot, available for download on NIC.org, includes key takeaways on the reported time series data, visual representations, and statistics for the past 13 rolling three-month periods, plus three economic indicators to provide some perspective on the current economic conditions. 

Note that the publishing of the Intra-Quarterly Data and Intra-Quarterly Snapshot report will occur on the third Tuesday of each month. 

April 2020 Intra-Quarterly Data Key Takeaways 

In April 2020, following the onset of the COVID-19 pandemic, stabilized occupancy for both seniors housing and nursing care properties dropped significantly. Nursing care properties experienced the largest decline, falling 220 basis points from the prior month to 84.7% for the rolling period of February-March-April 2020 in the NIC MAP Primary Markets. The seniors housing stabilized occupancy rate fell a lesser 110 basis points over the prior month to 88.7% for the NIC MAP Primary Markets. Prior to April, both the seniors housing and skilled nursing stabilized occupancy rates had been relatively stable. 

The impact of COVID-19 was clearly reflected in the rolling period of April 2020, with a greater toll seen in skilled nursing than in seniors housing. Specifically, the drop in stabilized occupancy for both skilled nursing and seniors housing is indicative of the effects of the pandemic on existing properties without the effects of competition of new properties on market conditions.  In addition, some of the sharp decline in skilled nursing occupancy was likely driven by fewer hospitals discharging patients to post-acute care settings for rehabilitative therapy as hospitals defer elective surgeries due to the pandemic.

More to Come

Going forward, NIC will continue to expand the NIC MAP Intra-Quarterly Data set and report on additional metrics, geographies, and data subsets in the third quarter of 2020.

In the meantime, NIC will continue to respond to the pandemic by doing what we do best − delivering data, analytics, and connections – to continue to provide transparency to the sector. Details can be found on our COVID-19 Resource Center which puts new data initiatives, as well as COVID-19-relevant commentaries, regulatory updates, and popular webinar details all in one place.

NIC would like to recognize those directly impacted by the COVID-19 pandemic and those on the frontline keeping residents of seniors housing and skilled nursing communities safe. We understand that seniors housing and skilled nursing operators are bearing tremendous burdens, and applaud their efforts to protect and serve their residents.

Leadership Huddle: Adjusting, Innovating, and Earning Trust

NIC’s Leadership Huddle webinar on May 21. Beth was joined by Mercedes Kerr, who provided her insights on these topics.

In the fifth installment of NIC’s “Leadership Huddle” webinar series, held Thursday, May 21, NIC Chief Economist Beth Mace and Belmont Village Senior Living President, Mercedes Kerr discussed the impact of COVID-19 on senior living. The discussion drew over a thousand registrations. Mace’s presentation of “The NIC Bluebook: Five Ways COVID-19 Could Affect Senior Living,” gave the huddle it’s title.

The presentation kicked off with Mace’s thoughts on the severity, breadth, and duration of the pandemic. Mace pointed to the “astounding” pace of the virus’ spread across the globe, growing by over 2 million new cases in the past month, to a May 19, 2020 total, provided by the John’s Hopkins Coronavirus Resource Center, of 4,823,479 confirmed cases globally, and 1,508,957 in the U.S. As Mace commented, “the pandemic is here, it’s widespread, and it’s affecting all of us.” While the number of newly confirmed cases each day is flattening, Mace summarized the latest data by saying, “there are still enormous numbers of people that are at risk in this pandemic, and that are being affected by it.”

Describing the measures her organization has put in place to combat COVID-19, Kerr observed that, “We are continuing to learn about this disease and how it manifests.” Belmont Village Senior Living has 31 communities in seven states and Mexico City, with its largest concentration in California, with approximately 4,000 residents in total.

The organization began by meeting Centers for Disease Control and Prevention (CDC) recommendations in early March, but quickly realized that would not be enough. Kerr described an “evolution” of actions, including voluntarily banning new admissions, restricting access to properties, using new processes and technologies to screen staff, restricting meal service, and modifying social engagement activities. Belmont is also using technology, such as Zoom and other connectivity apps, to help keep residents safely in touch with family and loved ones. They are also investing in telehealth technologies to enable the delivery of healthcare to residents without having to transport them to a hospital or doctor’s office.

For Belmont’s memory care residents, the organization has made further adjustments, including restricting dining into shifts, so smaller groups can visit the dining room at the same time, and training staff on how best to communicate with cognitively impaired residents while wearing a mask and PPE – a challenge particular to memory care.

Mace’s presentation on the economy was titled, “The Economy: A Storm Ahead.” The pre-COVID-19 economy was enjoying the longest expansion on record, and the lowest unemployment rate in 50 years. Now, Mace noted, “This is the third time in two decades that all job-growth of the previous cycle has been eliminated. We’re back at the same level of jobs as back in February, 2010, and August of 2003, and December of 1999.” The unemployment rate is now at its highest rate since before World War II. Now at 14.%, Mace said that the rate is “projected to possibly go to 20% when we get the new data from May.” She pointed out that in the nine weeks since the pandemic hit the U.S., 38 million people have filed for unemployment insurance.

Visualized in a chart tracking quarterly U.S. Gross Domestic Product since 1968, a “Severe shock to the economy” is clear to see, as GDP is projected to drop at an annualized rate of 25%-40% in the second quarter of 2020. “We’re in the thick of it,” Mace said. Most economists, according to Mace, believe we’re seeing the worst of the economic impact now, and that it will soon begin to show signs of improvement. However, “It largely depends on whether we have a second wave, and how well we’re able to get testing, PPE and tracing, and if we can get a vaccine.”

A number of these economic factors are impacting the seniors housing and care industry. Data reported in Senior Housing News reveals that the sector’s labor costs are rising in the pandemic. Labor costs are 8% higher for properties unaffected by COVID-19. In communities that have tested positive for the virus, these costs are 18% higher. Costs are driven by “appreciation pay,” or “hazard pay,” for frontline care givers, hiring temp staff, providing childcare stipends, and similar labor-related costs. Other COVID-related costs include acquiring PPE and testing kits, building sanitation costs, and higher insurance costs.

Kerr added that paid leave, or, “quarantine pay,” is another category adding significant cost, as operators keep COVID-positive staff out of their properties. She also observed that finding PPE can be very challenging – and often the costs vary significantly. She said that the cost of a full isolation kit, which is used when caring for COVID-10 positive residents, is averaging $45 a day. She added that COVID-specific costs quickly multiply in communities in which residents have tested positive for COVID-19, averaging about three times the additional cost for COVID-free communities.

Some of those costs will remain, even after COVID-19, but some will be reduced as supply chains are streamlined and society adjusts to a new normal. “The silver lining is that the deeper we are into this…the more efficient we are becoming,” said Kerr, who expects to reduce costs through better planning and preparation.

NIC Executive Survey Insights indicate that higher acuity properties are seeing large declines in move-in rates. The most recent “wave” of data, from May 3, reflects that 84% of skilled nursing respondents reported declining occupancy rates over the previous 30 days, with assisted living reporting 74%, and independent living 71%.

Belmont Village has seen a drop in move-in rates, too, due largely to banning new residents, but has begun to allow move-ins in select locations. Kerr also noted that there are prospective residents waiting to move in, “there are a lot of people who have been waiting to move in because they do have special needs and would like to be cared for in a suitable environment.” The company now offers virtual tours, which Kerr says have been very well received, and is instituting new protocols, such as isolating move-ins to ensure they are COVID-free, and minimizing foot traffic through new move-in procedures.

Kerr, whose twenty-year career in seniors h

ousing and care includes time working on the capital provider side, both with Welltower, Inc, and HCP, also commented on the availability and cost of capital. Mace reviewed the current situation: Lenders are “on pause” until the picture becomes clearer, its difficult to evaluate and price risk, we’re seeing limited originations and capacity for new ground-up development, and the approach to lending and borrowing has become more conservative.

Underwriting assumptions are also more conservative today. Mace discussed longer lease up times, near-term rent and NOI growth impairment, compromised margins, rising costs of borrowing, and uncertainty in cap rate movement. She also described today’s reality regardingtransaction volumes as being limited and having extended timelines. Capital providers are focusing on their existing portfolios, private markets still haven’t followed the rapid repricing seen in public markets, but likely will do so, and bid/ask disparities are widening. With many government offices closed, the pandemic is also impacting the ability to get inspections and paperwork completed.

Asked how Belmont is responding to these trends, Kerr said that the company is moving ahead with development projects already in the works. “It’s probably a relationship type of market and by that I mean transactions with repeat providers, where there’s a great deal of experience already, or projects we have done together,” she explained. “I’m not suggesting the flood gates are open, by any stretch, but we have been…continuing as planned and securing debt…we have continued down the path without interruption.”

On the possibility of rate cuts, Kerr said, “Given everything we’ve talked about up to this point, the absolutely extraordinary effort that has to go into what we are doing, I don’t anticipate that this is an environment for rate cuts…this is not a period for discounting.” Echoing comments from earlier Leadership Huddles, Kerr also suggested that the market would see fewer new entrants as a result of the pandemic. “I think you will see less of the type of development that we might have seen in the past…new entrants to the market, people who are ‘dipping their toe in.’ I don’t think this is a time to try something new.”

Speaking about the rapid pace of regulatory change, Kerr addressed how difficult it has been to remain in compliance. “It’s a real herculean effort to keep up with the changes in requirements,” she said, describing getting multiple different sets of guidance from different governing bodies, “You’re getting some sort of executive order from a governor’s office, versus something that is coming out of your local department of health.”

Mace briefly presented key demographic data, pointing out that baby boomers won’t even begin to arrive in seniors housing until 2028, when the first of the generation will turn 82. She also presented recent findings on the importance of lifestyle and social determinants on health outcomes, and asked Kerr about the evolving trend of merging healthcare into the seniors housing environment.

“It’s something we should all be very aware of; what role do we play in this continuum of care?” Kerr said. She described Belmont’s partnerships with academic and medical research institutions, such as USC Davis school of gerontology, Baptist Health, Vanderbilt, and others. “There’s a long list of those kinds of connections because we understand that we have the opportunity to impact wellness,” she said. Speaking about the new prevalence of telemedicine and how COVID-19 has inspired numerous innovations in delivery of healthcare and wellness, Kerr indicated many of the innovations would remain even after the pandemic. She said, “We represent where people live and these providers want to, in many cases, meet their consumer, their patient, where they live, which in our case, is in senior housing communities.”

The last portion of the webinar was devoted to answering questions from attendees, who can submit questions online. NIC Chief Operating Officer Chuck Harry collected a variety of questions from the audience, including several on testing. Responding to questions on testing, Kerr said, “We could have three sessions like this on testing and would not be done. There’s new information about it just about every day. Part of the conundrum has been that supplies have not been broadly available. They certainly haven’t been available in equal measure for every operator…we’re not looking at an evenly distributed opportunity to test.”

Another question, referencing the amount of messaging coming out of the nightly news, asked whether operators were seeing changes in consumer sentiment. In response, Kerr, described the effort her organization put into communications, establishing, “a very clear, transparent, and frequent communication with our staff, residents, and their loved ones. Nothing can replace that.” Commenting on the possibility of long-term damage, she went on, “I don’t know that there’s some sort of permanent damage; on the contrary, because people who are close to us understand the specifics, rather than just being guided by the headlines. But time will tell, Chuck. We’ll hopefully be doing this right and will earn that trust.”

Beth Mace-2-1Mercedes Kerr

 

 

Pandemic Bolsters Long-Term Healthcare Trends

Healthcare trends emerging prior to the pandemic are now expected to accelerate as the impact of the disease outbreak unfolds. More attention will be paid to healthcare costs. Consumers will become more selective about healthcare services. The ways in which healthcare is delivered and accessed will change. Big providers will be better positioned than small […]

Healthcare trends emerging prior to the pandemic are now expected to accelerate as the impact of the disease outbreak unfolds.

More attention will be paid to healthcare costs. Consumers will become more selective about healthcare services. The ways in which healthcare is delivered and accessed will change. Big providers will be better positioned than small ones to prosper.

Another big upshot will be closer collaboration among healthcare systems and senior living and care providers. “The COVID-19 crisis highlights the need for more cooperation,” said Andre Maksimow, senior vice president, Kaufman Hall, a consulting firm. “Providers will see the advantage of forming partnerships.”

Prior to the disease outbreak, Maksimow led a panel discussion at the 2020 NIC Spring Conference titled: “Five Healthcare Trends You Need to Know.” NIC recently circled back with Maksimow, a healthcare expert, and the panelists to update their outlook on emerging trends in the wake of the pandemic. They agreed that the outbreak will hasten trends already in place.

“The pandemic will change the healthcare delivery model,” noted panelist Brian Cloch, principal at Innovative Health. He owns skilled nursing and assisted living properties. Cloch expects senior living providers to be more invested in resident health outcomes amid the continued shift to value-based care.

Prior to the pandemic, healthcare costs were growing at an unsustainable rate, crowding out other investments and expenditures. The COVID-19 crisis is likely to increase pressure on cost reduction, according to Maksimow. “Healthcare will get a harder look.”

Employers will offer lower cost insurance plans and ones that limit consumer choice by mandating the use of preferred healthcare providers and networks. This will underscore another underlying healthcare trend: the emergence of the healthcare consumer. People will become more cost conscious. Price transparency for care will become more common. Consumers will be able to compare prices for the same procedure from different providers.

The New Normal: On-Site Care

Healthcare delivery and access will undergo perhaps the biggest change.

“Telehealth is here to stay,” noted Maksimow.  The pandemic has produced a need for virtual care. Seniors housing and healthcare providers alike are quickly adopting online visits. Residents like the convenience too.

Remote patient monitoring is also on the upswing. “Data can be gathered remotely to keep people healthy,” said panelist Mark Feinberg, CEO at Stay Smart Care. The company offers a remote monitoring platform. “Healthcare access and delivery has gone virtual,” he added.

The Stay Smart Care platform tracks vital signs, activity levels, medication data, and cognitive function. Non-intrusive infrared sensors gather much of the data and can also detect falls. Artificial intelligence analyzes the data to help prevent emergencies before they arise.

Registered nurses monitor the data and health indicators and communicate changes to the senior living operator.

Providing in-person healthcare services to residents will also increase. “The COVID-19 crisis highlights the benefit of this model,” said panelist Grace Chen, senior vice president of care services at Oak Street Health. The company provides primary care services to Medicare enrollees in underserved populations.

Last January, Oak Street partnered with four Chicago-area assisted living buildings operated by Pathway to Living, a company co-founded by Cloch. Oak Street doctors are on-site at the buildings two times a week to see residents who belong to a special Medicare Advantage plan. The insurer is MoreCare.

Senior living communities have restricted visits by some vendors because of the pandemic. But Oak Street has continued to send its doctors to the Pathway buildings because of an established working relationship that includes close cooperation, said Chen. Enrolled residents don’t have to take the risk of leaving the building to see the doctor either, she added.

The Oak Street model highlights the benefits of collaboration between insurers, healthcare providers and senior living operators. “We need to get proactive about healthcare,” said Cloch. He explained that on-site healthcare practitioners can spot trouble signs among residents early on and help avoid unnecessary hospitalizations.

How to Leverage Physician Groups

New strategies on how to work with physicians were also highlighted at NIC’s Spring Conference at a session titled: “What’s the Physicians Role in the Value Equation?” Panel moderator Anne Tumlinson, CEO at ATI Advisory remarked, “If you don’t have a strategy about the role of the physician, you will be behind in terms of the needs of the patient population, referral sources and payors.”

Some ideas suggested by panelists included:  how to build a team approach, leveraging technology, and the creation of protocols, data collection and cost controls.

Looking ahead, Maksimow expects more disruption. Corporate mergers are creating new models of care. For example, the drug store chain CVS purchased insurer Aetna. With its huge retail footprint of 11,000 locations, CVS could provide primary care services to Aetna beneficiaries to avoid hospital admissions. “They are reinventing the front door of healthcare,” said Maksimow.

Other big companies see opportunities in healthcare. Google and Microsoft are investing in healthcare start-ups. Maksimow speculated whether Amazon might roll out a low-cost insurance product to its 100 million Prime members. “It could upend the healthcare market.”

Scale will matter in the post pandemic world, according to Maksimow. Big companies will have the advantage of access to capital. He foresees more mergers and acquisitions, and bankruptcies, in the healthcare market. That will cause senior living providers to rethink resident care.

The pandemic presents an opportunity for senior living providers to improve their business model by collaborating more closely with healthcare partners, said Cloch, adding, “Never let a good crisis go to waste.”

A Rare Opportunity to Build Trust

As COVID-19 continues to threaten elders, the seniors housing and care communities in which many of them live face immense challenges.

Jurutka_4 20170813As COVID-19 continues to threaten millions of frail elders, the seniors housing and care communities in which many of them live face immense challenges. Despite shortages of PPE, testing, and support, operators have had to find ways to care for residents, many of whom require intimate personal contact to assist in activities of daily living, while fending off a highly contagious, invisible, lethal disease that can be spread by asymptomatic or presymptomatic carriers.  

A national spotlight is on the sector. Apolicy makers plan to reopen society, and frontline care workers continue the fight to protect vulnerable residents, it is time for industry leaders to address what may become a significant additional challenge to come out of this crisis: a narrative based on a lack of context, lack of understanding, and lack of comparable data.  

While many news reports are balanced, and report facts as well as they can, some lack clear, consistent definitions and complete and accurate data, simply because it is not available. While the difference between independent living, assisted living, memory care, and skilled nursing is apparent to those who work in the industry, the general population lumps these different care settings and their different populations into one category.   

Additionally, data, where it is available, varies from state to state, and even from county to county. States vary on how they count COVID-19 infections and deaths. Some have mandated available data be made public; others have not. Coverage often focuses on the “numerator” – the total number of COVID-19 positive cases and deaths – but rarely is the “denominator” – the total number of residents in the care setting – included in the story.  Furthermore, reports often do not take into account the fact that the very reason residents of high acuity settings are there is because they are frail with multiple comorbidities, a known risk factor for COVID-19 mortality, and many need help with ADLsContext requires understanding how populations of similar acuity and need for help with ADLs in traditional private housing fared during the pandemic. 

Of course, owners, operators, and capital providers understand that different property types serve very different acuity levelsbut the media – and the public – often do not. According to the recently released “Seniors Housing Data Book” from ATI Advisory, in skilled nursing settings, the average resident is 83.5 years of age, requires assistance with 5.1 activities of daily living (ADL), such as feeding, bathing, and toileting, suffers from multiple comorbidities, and has a 76% likelihood of cognitive impairment.  In Independent Living, however, the average resident is 82.2 years of age, requires help with 0.3 ADLs, and has 21% likelihood of cognitive impairment.  Without COVID-19relevant data that distinguishes between these populations, how can we expect the media to provide context? And how can we expect anxious families, both now and in the future, to understand how a single data point from a headline – such as their state’s “long term care facilities” COVID-19 mortality rate, is relevant to their particular situation?   

NIC was founded nearly 30 years ago to help improve transparency to capital providers for an industry that was, at the time, deeply opaque, compared to other types of commercial real estateSmall and large operators then, as now, were understandably resistant to the idea of sharing some of their most sensitive data, particularly given potential short-term risksBut over time the effort has proven highly effective at improving liquidity, lowering the costs of capital, and making it possible to improve the options available to America’s seniors.   

The industry now has an unprecedented opportunity to improve trust in the public eye, while simultaneously helping efforts to control the spread of this deadly virus. Accurate, consistent, and timely data with broad reach can help families, policymakers, health officials, and senior living operators understand and combat the virus – and be better prepared in the future. With the nation looking on, it is time to demonstrate a willingness to be transparent, and to share data that will help track and combat COVID-19 across each property type and care segment. 

NIC has launched a number of data initiatives in response to the COVID-19 pandemic. They rely on the continued participation of owners and operators, many of whom are overwhelmed and beset with other pressing issues. Yet, we encourage participation as an essential means to help shed light and provide context across an industry that can only benefit from greater transparency and clarity.   

As evidenced over several decades of improveaccess to capital by seniors housing and care, increased transparency leads to increased trust. NIC is a trusted, respected third party source of industry data with national scope across all sector property types. We understand what defines each property, and why these differences matter, and we can be relied upon to educate those outside the industry as we provide the industry data to them.   

We encourage operators to take a few minutes each week to share data with NICwhich will help to improve transparency, and build trust, while the spotlight is shining. During a time of intense national scrutiny, this is a rare opportunity to build a foundation of understanding and greater clarity, which may yield dividends for many years to come. 

Planning for a New Normal as Seniors Housing Reopens

Senior housing operators find ways to protect residents and staff, facilitate social connection, and restart move-ins, while the coronavirus remains.

Even as headlines announce White House and CMS plans to reopen nursing homes, many operators are already planning for a new normal. The COVID-19 pandemic is far from over, and still threatens older adults, but operators will have to find ways to protect residents and staff, facilitate social connection, and restart move-ins, likely while the virus remains at large. Some forward-looking decision-makers are planning to reinvent how they operate their properties. Some are going forward with existing plans to launch new properties, with similar operational modifications, on schedules that were determined months and years before the pandemic became our new reality.

But what will life look like in the seniors housing and care communities of the very near future? What will it take to protect residents and staff? And, how will it impact operating and capital budgets? Operators across the sector have already put many operational changes in place, as part of a massive effort to protect highly vulnerable residents. Most operators have announced what they’re doing to combat the virus, which in almost every case involves new protocols around testing, PPE, quarantining infected residents, and supporting frontline care workers and their families.

Brookdale Senior Living CEO Cindy Baier, in an online video message, states, “It’s been nothing short of extraordinary what our Brookdale associates have done to protect as much as possible tens of thousands of lives during this COVID-19 crisis.” Baier indicated that the company is planning for more normalized post-COVID-19 operations, even as they continue to fight to protect residents at the height of this pandemic: “We are all focusing on where we are right now, even as we start thinking about where we’re going.”

Many need-based seniors housing and care settings are purpose-built to protect this disproportionately high-risk population from viruses, such as the flu, while delivering the care and services residents often cannot access elsewhere. But COVID-19 is far more virulent than the flu, and has a disproportionately high mortality rate for seniors, particularly those with preexisting conditions, millions of whom call these communities home. Protecting residents and staff is further complicated by the fact that COVID-19 can be spread by asymptomatic carriers – often for weeks at a time.

Testing, therefore, has been an essential component of combating the virus, and for many operators, it will likely continue to be of paramount importance. In a recent NIC “Leadership Huddle,” on May 7, Atria Senior Living Chairman and CEO, John Moore, described how his organization was able to obtain testing in partnership with Mayo Clinic. In addition to obtaining sufficient PPE, their own source of hand-sanitizer, and new technologies for remote care and connectivity, testing has allowed Atria to detect the virus and combat its spread. Moore is not alone is his prioritization of testing. NIC, in coordination with industry groups, has issued a joint statement which lists access to testing as an essential component of the fight against COVID-19.

But there are many other details to consider. NIC spoke with Jonathan Cook, President/CEO of LifeSpire Living, an operator of four continuing care retirement communities (CCRC) in Virginia. Cook has already been planning for the lifting of travel restrictions and inevitable reopening of his properties to visitors and new residents. His target date is June 10, and he’s determined to be prepared when the time comes. He outlined his team’s “general work plan,” which he describes as a “brain dump of ideas,” which he hopes will evolve as his teams learn and adapt.

Planning includes a careful review of financial models, which have had to be modified to support the new operational plans. Although move-ins are down, Cook says they expect to pick up a backlog of deferred move-ins in the next few quarters. Medicare part A revenue is currently reduced, as hospitals have cut back on elective surgeries. Budgets, although different, aren’t expected to grow. “We’re going to redeploy our capital budget, so I don’t know that we’re going to have a huge impact there,” said Cook, “I don’t think we’re going to have large capital investments that we can’t absorb in the current budgets.

“Operationally, we’re doing things like the ‘hero pay’ and things like that…those are certainly going to have an impact on our operations.” But, at the same time, Cook said, “your dining rooms have been closed, so where you used to have 25 servers, you now only have 15, because they’re running food, so there have actually been some savings on that side…we have not seen these huge swings up or down in our payroll levels. We’ve been able to maintain and redeploy resources in ways that have really created a balance.”

Cook’s team conducted a complete assessment of their capital budgets, to understand where resources were being dedicated, and where they could be reassigned. They then created action plans for every discipline, such as housekeeping, and laundry. They sent out requests for proposals for professional housekeeping companies, to provide daily cleaning, and to meet additional cleaning standards, throughout each day. As Cook said, “cleaning your lobby in the morning and afternoon will likely no longer be sufficient.” Prior to reopening, the team plans to deep-clean every apartment in buildings that have had a case of COVID-19.

During COVID-19 lockdown, the community has limited engineering, transportation, and security services, to help reduce the risk of infection. A lot of routine work orders will therefore be backed up. Cook’s team reached out to construction partners, in order to get handy men on staff for 4-5 weeks to help catch up.

Every vehicle in the LifeSpire fleet has been equipped with sanitation kits, so they will be ready to safely transport residents. The company is also looking at redeploying existing staff, and using corporate cars, to accommodate the transportation needs caused by a backlog of deferred doctor’s visits. The company put a hold on the planned purchase of several busses this year, as they wait to see whether vehicles will need to be special-ordered or customized to accommodate residents post-COVID.

Another concern relating to transportation is handling EMS staff responding to emergencies on the property. Due to their heightened exposure to COVID-19, new procedures provide for a hand-off of the resident to EMS, who receive them at the building entrance and place them on their gurney there. “It’s not how we like to do things, but it’s what we’re trying to do to maintain a COVID-free environment for our residents,” said Cook.

Fitness classes are now available on residents’ TV’s and an exercise app. This change is already in effect, and has resulted in some residents participating more than before. Cook reported that his mother-in-law, a resident, had been self-conscious and avoided attending in-person sessions – but has now lost 14 pounds attending from her apartment. Post-COVID classes will be smaller, and more frequent, in order to accommodate residents who prefer to exercise in classes, and on equipment not available in their apartments. This will require more staff hours.

Another COVID-related adaptation is to move more activities outdoors, to help further reduce chances of transmission. Cook is looking into increasing patio dining, heated tents, and expanded use of outdoor areas as a means to maintain social distancing.

Beauticians, tested and screened daily, and equipped with full PPE, will visit residents in their homes. Visitors to the beauty shop will skip the waiting room and come when they receive a call, during which time the space will be sanitized.

Gift shops will no longer accept cash, cutting out another potential infection point. Resident outings will still be on offer, but mainly only to outdoor venues, such as baseball parks, outdoor concert spaces, and parks. Indoor activities, such as card games, will remain, but on a smaller scale, to accommodate social distancing protocols. A new lottery program will limit numbers of residents attending onsite performances, with spaced seating installed. Others will be able to watch on the in-house TV system.

According to Cook, the biggest impact, both on the resident community and the budget, will be the revamped dining program. Details such as grab-and-go packaging, separate entrances and exits, expansions of dining rooms into outdoor spaces and heated patio tents, will change how everyone approaches meal times. In addition to offering room tray service, like a hotel, and mobile and web ordering, previously public vending and snack options will be offered as individually wrapped options. Employee break rooms will receive similar consideration, and will also gain outdoor dining options.

New budgets also accommodate new gatehouses, designed to control access, and continued screening of all visitors. For residents who don’t already have smart devices, the budget provisions tablets for running Facetime, Teams, and other technologies that enable connecting with others remotely.

As move-ins are approved, the company will offer new residents incentives, such as paying for movers. Cook’s team is looking  to negotiate with one corporate moving vendor who will be contractually obligated to learn and follow the correct procedures, properly sanitize equipment and maintain corporate standards. He sees having one vendor that is well-versed in operations as another means to reduce the risk of infection, while offering value and service to residents.

As staffing needs ramp up, new procedures for recruiting and onboarding will be in place, using facetime for interviews, and screening for COVID-19 as part of routine measures. Cook expects new staff will be needed soon. Using modeling to project his team’s planning, he sees a backlog of deferred move-ins, a return to some elective procedures, and a balanced reallocation of resources that will help his communities adjust to a new normal and still be able to keep residents safe, healthy, and happy. He said, “We think this is certainly going to represent some expenses, but its not anything we’re not going to be able to recover from.”