As if declining occupancy, new payment models, increasing labor costs and continued regulatory pressure weren’t enough, long-term care providers must learn to address the emerging demands from younger consumers. In this presentation, we look at why occupancy and utilization are declining, the characteristics of the emerging market and how best to engage them. We will also look at levels of efficiency, why efficiency is the new keyword in long term care, and ways to differentiate long term care services.
5. Myth Buster
Occupancies are poor because the age
qualified markets are declining
ALSO, occupancies are poor because of
• Increased options / choices
• Negative perception
• The economy
• “Intermediaries”
Kroger’s competes on ≤ 2% margins
• Can retirement centers & nursing homes?
11. What’s the problem?
Why are occupancies
declining?
Is “Marketing” that bad?
Is “Sales” that bad?
12. Stackpole & Associates, Inc.
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2014
Born 1928
85 yoa
2020
Born 1934
85 yoa
2017
Born 1931
85 yoa
13. Negativity
Sector NOT thought of as the valuable
resource it is …
They are seen as prisons – awful places
– The “F” word
– “Don’t want to put / place mom in a nursing
home.”
– “I’d rather be dead.”
Deep metaphor of negativity
Stackpole & Associates, Inc.13
15. Responding to a declining market
Defend, protect & fortify
• Manage to Loyalty
Increase Productivity / Efficiency
Innovate
Differentiate
16. Stackpole & Associates, Inc.16
Source of Efficiencies
Employees
– Key to costs / outputs
Are we getting more staff?
Staff produce “patient / family
experience”
Staff produce Quality & Value
19. Stackpole & Associates, Inc.19
Efficiency
Technical, Productive, Allocative
–Technical
Maximum improvement from resources
–Productive
Best health outcome for given costs or
reduction in cost for the same outcome
–Allocative
Best outcomes for society
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Innovate / Add Efficiencies
Post Acute Care Transitions
Hospitals
– Resident & Family satisfaction data
– Transactional efficiency
Pharmacy & Rehab
HCBS
22. Facts of Life
The age qualified market is shrinking
Continued pressure on payments
Continued pressure on utilization
Efficiencies & productivity are the
keys to effective differentiation
23. Responding to a declining market
Defend, protect & fortify
• Manage to Loyalty
Increase Productivity / Efficiency
Innovate
Differentiate
24.
25. Call or email Irving Stackpole
+1-617-739-5900, Ext. 11
istackpole@StackpoleAssociates.com
www.StackpoleAssociates.com
Stackpole & Associates, Inc.
26. Bibliography
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Albrecht K. and Zemke, R. Service America. New York: Warner Books, Inc. 1985
Bruner II, G.C. , James, K.E., and Hansel, P.J. Marketing Scales Handbook: A
compilation of multi-item measures, volume iii. Chicago: American Marketing
Association. 2001
Chase, R & Dasu, S. Want to perfect your company’s services?: Use behavioral
science. Harvard Business Review June, 2001.
Cialdini, R. Influence: The psychology of persuasion. New York: Quill. 1993
Johnson, M & Gustafsson, A. Improving customer satisfaction, loyalty and profit: An
integrated measurement and management system. San Francisco: Jossey-Bass.
2000
Parasuraman, Zeithaml and Berry. A conceptual model of service quality and its
implications for future research. Journal of Marketing. 1985 Fall:41-50.
27. Bibliography
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Palmer, S and Torgerson, DJ. Economic Notes: Definitions of efficiency. BMJ
VOLUME 318 24 APRIL 1999
Reichheld, F The Loyalty Effect: The hidden forces behind growth, profits, and lasting
value. Boston: Harvard University Press. 1996
Stackpole. I. & Ziemba, E. Make Your Marketing P-P-P-P-Perfect, Care Management
Matters, April 2008
Stackpole, I. & Ziemba, E. It’s Not What Your Say – It’s What People Hear!, Care
Management Matters, June, 2008
Zaltman, G, Zaltman, L, Marketing Metaphoria: What deep metaphors reveal about
the minds of consumers. Boston, Harvard Business Press 2008
Ziemba, E. Email Campaigns that Work. Care Management Matters, April, 2009
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Editor's Notes
The four cornerstones of survival for age-based service providers
Protect, fortify & defend
Improve efficiency
Innovate
Differentiate