Slowdowns in lead conversions or sales were the most common reasons cited for a recent decline in the pace of move-ins in senior living among respondents to a National Investment Center for Seniors Housing & Care survey.
Results were released Tuesday.
The NIC Executive Survey for May revealed a decrease in the share of operators reporting an acceleration in the pace of move-ins across independent living, assisted living and memory care compared with the April report.
In the May report, 53% of memory care, 49% of assisted living and 39% of independent living providers reported an acceleration in the pace of move-ins in the past 30 days. Those figures are down from the April responses, however.
Independent living and assisted living operators experienced the greatest slowdown in the pace of move-ins in May compared with April; then, 56% of assisted living and memory care respondents had reported accelerated paces of move-ins, and 52% of independent living participants had reported an accelerated pace of move-ins.
Across all types of senior living and skilled nursing, the majority of providers participating in the survey (71%) attributed move-in declines to a slowdown in lead conversions or sales, followed by fears of rising unemployment or an unstable economy (14%) and increased community pricing (7%).
Just more than half (51%) of all poll respondents indicated that they use third-party referral aggregators. Of those who do, just 9% of operators reported converting more than 75% of the leads successfully, 5% said they successfully converted more than 50% of the leads, and 23% said they converted 26% to 50% of third-party generated leads. Almost two-thirds of all providers (64%) said they were successful in converting less than 25% of those leads.
Most providers said that they have no plans to end their relationships with the aggregators (43%), and 30% said they anticipate that the contracts will remain in place through 2024. Only 17% of operators indicated that they expect to end their third-party referral agency contracts before the end of the year, and 9% said they expect to end the contracts next year.
NIC Senior Principal Ryan Brooks told McKnight’s Senior Living that the data on third-party referral agencies are new but that he anticipates seeing more lead aggregators choose an approach focusing on targeted leads rather than casting a wide net. Aggregators, he added, also might begin comparing leads with current residents to help improve the conversion rate of prospective residents.
Expenses continue to be top concern
Expenses continue to dominate companies’ list of concerns.
Increasing operator expenses were cited by more than 80% of survey respondents as the biggest challenge facing the industry — down from 92% that reported expense concerns in March — with property and professional liability insurance costs leading expenses.
More than 95% of participating providers across all senior housing and care segments reported that property insurance costs increased over the prior year. More than one-third of the independent living (37%) and assisted living (36%) operators reported property insurance costs increased significantly from last year, whereas 32% of the memory care providers reported similar cost increases.
Increasing professional liability costs also are reportedly challenging operators. Approximately two-thirds of responding memory care (68%) and assisted living (65%) providers reported increases, whereas 62% of participating independent living operators reported liability insurance cost increases.
No respondents reported decreases in property or professional liability insurance costs.
The May report collected responses from owners and executives of 47 senior housing and skilled nursing providers. See more results here.
