Increasing operating expenses are overtaking staffing issues as the biggest challenge facing senior living and care organizations, according to the results of a new survey by the National Investment Center for Seniors Housing & Care, released Thursday.
Although workforce issues remain a challenge for operators — especially recruiting (80%) and turnover (80%) — they are taking a back seat to the cost of doing business, as 86% of respondents to the NIC Executive Survey Insights Wave 44 survey cited operating expenses as a top concern. That percentage is up from the 80% of participants citing operating expenses as a top challenge in Wave 41 survey responses.
Other top challenges facing operators include low occupancy rates (41%), limited admissions due to staffing levels (22%) and new competition (12%).
A ‘promising sign of relief’
But in what NIC Senior Principal Ryan Brooks calls a “promising sign of relief,” 14% of respondents said they anticipate that staffing challenges will improve in the second half of the year, whereas 47% see improvements coming in the first half of next year. One in four respondents, however, said they anticipate that staffing challenges won’t ease until 2024 or beyond.
Almost all respondents (96%) reported paying overtime hours, and 74% said they still are using agency or temporary staff. Of those using agency or temporary staff, 55% said they do not anticipate that their reliance on agency or temporary staffing will change in the second half of the year, and 37% expect to see a decrease.
Pace of move-ins increasing for some
On the occupancy front, some operators reported an increase in move-ins.
An equal number of independent living operators (46%) reported an accelerated pace in move-ins or no change in the past 30 days. This amount compares with only 31% of independent living operators reporting an acceleration in move-ins in Wave 43.
Assisted living operators had a similar experience, with 45% of operators reporting either an acceleration or no change in move-ins. This amount is down from Wave 43, in which 50% of operators reported an increase in move-ins.
In memory care, 32% of respondents reported an increase in move-ins — down from 48% in Wave 43 — whereas 53% reported no change.
A slowdown in lead conversions and sales was the main reason cited for a deceleration in move-ins (64%), followed by resident or family member concerns (21%).
The pace of move-outs remained virtually unchanged for the majority of independent living and memory care operators (79% each) as well as assisted living operators (66%).
Wave 44 included responses provided July 25 to Aug. 21 from owners and executives of senior living and skilled nursing organizations.
