Rising operating expenses may limit the degree to which operating margins will grow in the next six months, according to the latest Executive Survey Insights report, released Thursday by the National Investment Center for Seniors Housing & Care.
For the Wave 38 survey, 75% of respondents said they expect operating margins to grow, and just 5% of respondents said they anticipate that their margins will decrease over the next six months. More than half (55%) said they anticipate that their operating margin growth will be between 1% and 5%.
Since the Wave 36 survey, half of the respondents with assisted living units reported acceleration in the pace of move-ins, whereas the pace of move-ins in independent living and memory care has slowed. According to NIC Senior Principal Lana Peck, the omicron likely played a role, with residents moving to higher levels of care.
Twenty percent of the organizations with independent living units reported a deceleration in the pace of move-ins since the previous survey (27% versus 13%), and roughly an equal share of organizations with independent living units reported acceleration in the pace of move-outs since the prior survey (27% versus 15%).
In addition to concerns about operating expenses, respondents reiterated prior concerns about staffing challenges. Since July, virtually all operators (97% to 100%) responding to the survey have reported staffing shortages. Attracting community/care-giving staff and employee turnover remain the most significant challenges for survey respondents (86% and 60%, respectively), Peck reported.
Ninety percent of respondents to the current survey expressed support for a federal investigation of anti-competitive practices by nursing and other direct care staffing agencies. In January, the American Health Care Association / National Center for Assisted Living and the American Hospital Association asked the COVID-19 response team coordinator for assistance due to reports of anti-competitive practices by nursing and other direct care staffing agencies.
The Wave 38 survey includes responses from owners and executives of 67 senior housing and skilled nursing operators received between Feb. 7 and March 6.
Heading into its third year, the Executive Survey Insights is transitioning away from the pandemic to focus on other challenges facing long-term care, Peck said.
