Most market demand research studies project that between 4% and 6% of the age- and income-qualified households will move to a senior living community. There are exceptional markets like Philadelphia, Chapel Hill, and others that enjoy much higher percentages; and there are many areas with low to zero percentages. Some opportunities to serve a greater percentage of age qualified households have been accelerated by COVID-19. It is right to pause, reflect, and pray for the families who have lost loved ones, lost earnings, or lost their businesses in these uncertain times; but, as with any historical crisis, COVID-19 is accelerating change and some of those changes will stick.
One change that seems likely to stick and accelerate reflects a longer-term trend that can be labeled with one powerful word, “HOME.” Tech companies and legacy businesses have learned that the battle for the customer is fought in the home. The beginnings of this same trend are in the senior housing and healthcare services niche too. “Hospital at home” programs get people out of the hospital sooner and help them recover more quickly and with better outcomes at home. PACE programs keep the frailest poorest members of our society safely in their homes. Continuing care at home programs have been around for 30 years and currently serve over 5,000 members through over 30 programs. The most striking fact about these programs is that historically only 4% of their members have ever needed facility-based care.
That’s right, these programs keep 96% of their members out of assisted living and nursing homes. Recent conversations with several program leaders indicate that new membership growth is accelerating during COVID. It should come as no surprise that when people, especially older people, are told they are safer staying at home, that customer desire increases for programs that offer a coordinated plan to stay independent at home. It is worth note that a super majority of these customers are a new slice of the age qualified market…meaning these programs are not taking people away from residential offerings but rather opening a new demographic.
If you would like to learn more about these programs and whether they might be a good fit for your organization and market, please connect. Longevity Markets has helped launch 20% of all the Continuing Care at Home programs and an even higher percentage of the newest programs.