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Paul Contris Interview January 2016
1. Katherine: All right,we are here withMr. Paul Contrisof Welcovandwe are goingto continue our
conversationonassistedliving.Today,we're goingtotalkaboutsome trendsinthe
industry.Paul,thankyousomuch forgivingusyour time to interview youandtokeep
people uptodate on what's happeninginthe assistedlivingindustry.I'matthis
particularage where I'm spendingmore time caringformymomand she'snot in
assistedliving,butwe're havingthose conversations.Ithankyouforcomingin and
sharingyourknowledge withus.One of the thingsI've seenchange,Idon'tknow
firsthand,overthe years,ishow the assistedlivingmodelshave changedfromwhatI've
knowninthe past of the nursinghome facilities.Whatcan yousay aboutthat change in
the trendthere?
Paul: There'sa gradual increase inthe acuitylevelsinall of the varioussettingsacrossthe
seniorcare continuum.You've gotyour independentliving,yourassistedliving,and
your skillednursing.We have maybe 60facilitiesandthe majorityof ourfacilitiesare
skillednursing.We dohave about20 assistedliving.Revenue-wise,byfarthe majority
of ourrevenuesare skillednursingandwe've gota couple of independentliving.Inthe
industryingeneral,whatwe're seeingispeople are aginginplace inthe independent
and assistedlivingsetting.
I thinkwe've talkedaboutthisbefore,butskillednursingfacilitiesnow are reallyfor
people whohave complexmedical conditionssotheyneed24hour RN coverage and it's
usuallyshorttermstays,maybe a few weeks.The average stayisprobablyinthe 30 to
60 day range,whereas20 yearsago it mighthave beenacouple yearsthat people
wouldbe there.Those peoplethatdon'tneedthatintense medical care are now either
inassistedorindependentlivingandthose people,we are seeing,the acuitylevelsfor
those people are increasing.There'sthiskindof gradual shiftwhere skillednursing
facilitiesare takingcare of people thatusedtobe takencare of or hadto be takencare
of inhospitalsorlongtermcare hospital facilities.
Assistedlivingisnowtakingcare of people thatusedtobe in nursinghomesand
independentliving,even,isgraduatingtothe pointof where it'stakingpeople thatused
to have to be in assistedliving.Independentlivingnow isbringinginservicesfromhome
healthagenciesthat'sallowingthemtostaylongerinthe independentlivingfacility
before theymove tothe assistedlivingfacility.The assistedlivingsettingis...Operators
of assistedlivingfacilitiesare startingtoprovide more serviceswithmedical related
serviceslike assistance withmedicationandthattype of thing,allowingthose residents
to stay longerinthe assistedlivingsettingbeforetheygotothe skillednursingsetting.
Skillednursingreallyisnow evolvingintoapost-acute care settinglike,somebodyhasa
hipreplacement,say,inahospital orevena routine procedure like aknee replacement
or somethinglike that,they'll gotothe skillednursingfacilityafterthe procedure inthe
hospital fora shortterm stay.Maybe 2 weeks,30 days,and theyreceive physical
therapyand otherrehabtype servicestohelpthemtransitionbacktohome.It'sa
2. January 2016 Paul Contris Page 2 of 3
gradual increase inthe acuitylevelsandthe service levelsin,likeIsaid,all of the
differentstaysalongthe continuum, independent,assisted,andskillednursing.
Katherine: Mm-hmm. It soundslike all of the differentlevelsof care have shifted.Doyousee that
there'sbeenhappening,overtime,a shiftinthiscare anytime soongoingin a different
direction?
Paul: Yeah,I see a continuationof the existingtrend,really.There's ahuge age wave aboutto
hitin 2020 iswhere isreallytakesoff.It'sjusta challenge thatthe governmentand
everybodyasindividualsisgoingtohave to deal with.Obviously,people wanttostayin
theirhomesaslongas theycan andthere'sa lot of growthin the home healthindustry.
It's justkindof a fact of life.Yougetto a certainpointwhere youdon'twant to have to
maintaina home.Maybe you're livinginahome withupstairsanddownstairsand
there'sjustso manyissueswhere itmakesalotmore sense to live inanindependent
livingfacilityorassistedlivingsetting.
There'sgoingto be a lot more people in,like Isaid,2020 is whenitreallytakesoff andI
thinkit'sgoingto ... The trendis goingto continue the wayit'shappeningrightnow.
People willcontinuetowantto stayin theirhomesaslongas theycan and the demands
on the independent,assisted,andskillednursingfacilitieswillcontinuetoincrease as
people getolderbecause whenthe age wave hits,we are goingtohave an issue as far
as supplyversusdemand.Ithinkthisincrease inthe servicelevel andacuitylevel atall
the differentlevelswill continue.
Katherine: I wantto ask you one more questionbeforewe go,justforclarification.The skilled
nursing,isthat the wayto prolongsomeone stayingintheirhome before havingtogo to
a facility?
Paul: No,the skillednursingisatthe mostacute level of the spectrum.It'sthe home health
agencies whoare reallywhatenable people tostayintheirhome the longestuntil they
...The skillednursingcanplaya role,maybe you're referringtowhatIsaid if somebody
has a knee replacement,thentheygotoskillednursingfor3 or 4 weekstoenable them
to transitionbackto home,butthat's more a short termtransitionarything.Iwouldsay,
really,asfar as whichof the serviceshelpspeople mostasfaras stayingintheirhome
and notmovingto independentliving,the firstlevelof the seniorcare continuumthere,
isthe home healthagencyletsthemstayintheirhome before movingtoa facility.
Katherine: Okay.Well,Paul,I've enjoyedourtime,again,gettingmore educatedaboutmaking
those decisionsforassistedlivingorskillednursingforourlovedonesaswe are aging,
ourselves,andformyself,takingcare of mymom and lookingafterhernow.The table's
turned,she'snotlookingafterme as much.What our conversationshouldbe like and
whatto expectandwhat conversationstohave withmysiblingsaswe're moving
towardsthat time where she needstoreallyretireandrestandenjoythisotherpart of
herlife,andyouhelpmake these conversationseasyeachtime we come together.I
wantto say thank you.Letpeople know how togetin touchwithyou outside of this
interview.
3. January 2016 Paul Contris Page 3 of 3
Paul: Our website,www.welcov.comisthe bestway.WelcovisW-E-L-C-O-V.Welcov.com.
Katherine: Awesome.Thankyouanduntil nexttime,Paul.
Paul: Okay, thankyou Katherine andhappyNew Year.
Katherine: Happy newyearto you,as well.
Paul: Bye now.