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THE GOOD NEWS is that QSAP (Quality supplemental Payment Program) incentive plan encouraged in the Affordable Care Act is working!  The intent was to encourage the formation of accountable care organizations in an effort to improve health care quality and slow the growth of health care spending. Accountable Care Organizations embody a set of healthcare providers, including primary care physicians, specialists, hospital and long term care facilities that work together collaboratively and accept collective accountability for the cost and quality of care delivered to patients.

In California Department of Public Health is partnering with California Department of Health care Services to implement this new program.  The department’s Center for Health Care Quality is assessing and scoring quality of care of skilled nursing facilities to determine scores that qualify skilled nursing facilities for supplemental payments.   Qualified participants can expect to receive payments from the $90 million dollar fund as determined April 23, 2015.  Electronic fund transfers will be received April 27, 2015.

Out of 1000 skilled nursing facilities, 363 received incentive awards for their performance.  The individual facility payments ranged from $4000 to $1.2 million, an average of $223,000.  185 facilities that qualified for improvement awards ranged from $800 to $213,000, averaging $49,000 per facility.

The scoring of the quality of care is intensive and extensive.  It covers every aspect of the operation as well as the condition of the physical plant.  The methodology of scoring is still pending.   Skilled Nursing Providers are adapting to the Culture change in long term care.  Therefore, scoring facilities for quality of care is not only based only on the physical condition of a patient or a reduction of hospital readmissions, but the “wellness” of the patient care is of prime importance.  The industry is becoming far more sophisticated and making quantum leaps.  Providers bottom line is increasing while patient care quality increases.  THE NEWS IS GOOD FOR BOTH SKILLED NURSING PROVIDERS AND FOR THE SENIOR POULATION REQUIRING LONG TERM CA

Future Healthcare Trends: What the experts are saying

Future Healthcare Trends: What the experts are saying.

The Baby Boomer Generation, Technology and Coordinated Healthcare are the three critical elements shaping the future of Assisted Living, Independent Living, Continuing Care Communities and Skilled Nursing Facilities as reported by many of the experts in the Healthcare Industry.

As Baby Boomers approach retirement age, the senior living industry has to address the needs and demands of the Boomers who are active, tech-savvy and who are living longer.  Boomers will approach retirement in a whole new way.  Providers of healthcare facilities must keep up with the demands in order to stay in business and be competitive.  In the future expect to see more emphasis on amenities.  It will be easier for larger communities like CCRC’s to offer a wider variety of events and services.  Boomers want to be more physically and mentally active.  Senior living communities will offer more education opportunities, including online learning options.   There will be more recreational and fitness options promoting ‘whole person wellness” which observes the physical, emotional and spiritual aspect of the retiree.   Diversity is important to Boomers because they grew up during a radically different social and political environment than previous generations.  Retirement communities for distinct ethnic groups, which offer the benefits of a common language and culture will be an option offered to seniors.  Other communities will be designed to offer lifestyle choices.

The experts report that technology creates the greatest difference between the life of seniors of the past generations and the lives of Boomers and future generations.  Baby Boomers are particularly tech-savvy and will drive the senior living industry toward wireless connectivity.  “Smart homes” are built to accommodate wireless technology to help boost the independence and safety of older adults.  Seniors are able to be more independent and also are able to contact family and care givers when needed.

Collaboration and Integration in the Healthcare Industry are aspects which are changing and shaping the future as Providers seek additional strength to cut costs and improve the quality of care for residents.  As reported by Dr. Thomas Lee at the October Nic conference there is a great need for collaboration and integration of organizations that work with seniors, including healthcare providers and housing groups. Vertical Integration between types of Senior Care effectively organizes senior care between senior community and hospital.  Evidence of this trend is notable today and will become a driving force in the future as the Healthcare industry gains more sophistication.

So the future looks bright for the Healthcare Industry.   Retirement takes on a completely new look as providers adjust and comply with the needs of the upcoming generations.  Existing providers recognize and respond to the change, and new investors to healthcare are emerging to bridge the gap between supply and demand.


The current Baby Boomer generation reaching retirement feels younger, will live longer and demands meaningful activities and experiences in a Retirement Home as they leave their careers and active social life behind them. They are still healthy, but their physical stamina has changed and requires some assistance or service. There are currently 78 million Baby Boomers in the U.S. and 8000 turn 65 everyday. They expect better housing and amenities in their first entry into an Assisted Living or Independent Living facility, even though eventually they require the same medical care & services as generations before them.


Owner/operators must meet the demands of this “back to the dorm” crowd and compete for their considerable buying power. Not only do they need to invest in technologies that insure life safety but also in technologies that insure life quality.  These new technologies will emphasize life style and wellness. Owner/operators must adapt also to the current aging generation’s demand for diversity.  When first entering retirement the Boomer generation does not want to co-mingle with just Seniors.  They prefer to live in a community of diverse ages, allowing them to co-mingle with all ages:  youth, middle age, and older. To meet this demand, Community Care Retirement Community Developers are building their Independent Living Facilities and 55+ communities close to developments, which incorporate all ages.

Whether building a new community or adding to an established one, retirement facilities feature

  •         Neighborhoods for 55 plus
  •         Neighborhoods for single families within blocks
  •         Apartment complexes in another sector
  •         Community areas for all ages  (Parks, stores, recreation areas etc.)

Assisted Living and Skilled Nursing facilities are often found in the neighboring location completing the Continuing Care Retirement Community concept.


Purchasing a troubled facility that has declared Bankruptcy in Chapter 11 creates an opportunity for the owner to restructure the facility to meet the new demands of the culture and the demands of the emerging Boomer generation. Improving the physical plant, adding amenities, services and new technology must be addressed in the restructure with emphasis on life style and wellness.

For counsel, acquisition or disposition of a Healthcare Facility you please contact Shep Roylance of JCH Consulting Group and Roylance Senior Housing, whose expertise and knowledge will guide you through a successful transaction in or out of Bankruptcy.

Shep Roylance –  Roylance Senior Housing, JCH Consulting Group    
Direct 805-633-4649      Cell 818 515-0530         Fax 805 392-5171       Email Shepshep@shepjch.cch