Repeat challenges Although occupancy is down slightly since 2018 (90.2 percent for independent and 85.1 percent for assisted living in second-quarter 2019), according to NIC, finding staff to care for an increasingly aging target market has continued to be a challenge. Watermark is one of the providers that has grown steadily over
the past several years. The company has held the No. 12 spot since 2018, while growing units up 23 percent from 2017. And like all providers interviewed for this article (and for every
largest provider article over the past several years), Watermark continues to be challenged by staffing—both in terms of “finding enough qualified candidates and competing for scarce talent,” says director of strategic investments Bryan Schachter. “With wages growing at a rate that will outpace revenue, it’s the
job market, not the prospective resident market, that now keeps us up at night,” agrees Stephanie Harris, CEO of Arrow Senior Living (No. 66), which has another nearly 1,300 units in the works. “The labor market has changed dramatically in the last five
years—whereas we would have a handful of very qualified can- didates for key positions at the communities, now we are lucky if we are finding one or two,” adds Petras, of Priority.
Another pressing challenge is ensuring communities are pre-
pared to meet the demands of the next generation of seniors. “They are becoming more willing to pay for services and ameni- ties that they desire, such as multiple dining venues, wellness, spa facilities, and more,” says Watermark’s Schachter.
More options, more care needs “Discovery believes that the future of seniors housing needs to include more optionality of services and customization of experi- ences for our residents in all product types, or the industry will fur- ther narrow its appeal to the more frail population and become a far more care-oriented model,” notes Richard Hutchinson, CEO of Discovery Senior Living (No. 16). These changes will impact both how properties are designed
and the services offered: “Companies will need to be able to seg- regate the economics of the services they are providing, use data to better manage the semi-variable and variable components of those services, and utilize technology much more effectively on the delivery of those services,” Hutchinson says. “Embracing these changes will represent the next step in the maturing of our industry, as well as attract the next generation
“With wages growing at a rate that will outpace revenue, it’s the job market, not the prospective resident market, that now keeps us up at night,” says Stephanie Harris, CEO of Arrow Senior Living (No. 66).
Increasing labor competition For its part, Brookdale is focused on attracting local talent. “At- tracting, engaging, developing, and retaining our associates is one of our three pillars and we are seeing very positive results,” says president and CEO Lucinda Baier, one of 28 female chief execu- tives among the 140 largest providers. “In fact, between January and April of this year, approximately 1,500 Brookdale associates who left the company have come back. We are happy about that and take it as a sign of success.” “Hiring as a whole has become more complex,” adds Integral
Senior Living (No. 14) CEO/COO Collette Gray. “With mini- mum wages increasing to heights we’ve not seen before, we are competing with fast food restaurants now in some markets for employees.” “We have looked at how to truly differentiate ourselves as an
employer of choice,” Gray says. “We need to provide a different work environment that offers choices for our employees, just as we do for our residents. And at the end of the day, we need to have fun and want to come to work every day.”
of business leaders to this industry—both of which will allow our industry to remain a relevant option for our seniors.” Increasing care needs are also a challenge. “Today’s assisted liv-
ing is yesterday’s skilled nursing,” says Affinity Living Group (No. 10) CEO Charlie Trefzger. “We have to be able to provide more medical care to allow our residents to age in place for a longer period of time.”
Future needs Cost remains a factor for seniors considering long-term care, as well. “Future residents are projected to have fewer resources than the current resident population and will be more cost-conscious out of necessity,” notes Arrow’s Harris. “The industry has to do a far better job of showing the value of
proactive moves and overcoming adult children’s desire to be the salesperson to their family member,” Harris says. “We have to have a far more patient sales process that looks beyond immediate needs and stays connected with prospective residents and their families for a longer period of time. It takes time for seniors to navigate the emotional terrain of the decision to move to senior living.”
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