Jim Moore addresses senior housing issues monthly in McKnight’s Senior Living. below is one of Jim’s featured pieces:
“You’ve Got Questions . . . We’ve Got Answers”
Is 2018 going to represent a year of favorable Senior living opportunities or a troublesome year involving numerous challenges?
It will depend on your individual performance. Just two current issues can make a big difference; minimum wage impacts and CNA turnover trends.
Walmart recently announced an $11.00 per hour entry level worker compensation. Other businesses and cities are rapidly adopting a $12.00 to $15.00 minimum wage requirement. Entry level workers do not work exclusively at fast food outlets. They work for you in housekeeping, food and beverage and a number of positions in direct care. Furthermore, other lower paid workers expect to maintain approximately a $1.50 per hour premium over the prevailing minimum wage. Unemployment is low and expensive employee turnover is increasing. Our analysis shows cash flow and operating profit margins are significantly impacted in assisted living, memory care and nursing operations.
The availability of CNA workers is becoming critical. Senior living operators are increasingly using expensive contract labor or workers provided by third-party agencies. There is a current preference by many CNAs to work at hospitals and Home Health Agencies. Many CNAs indicate a reluctance to work in assisted living and nursing communities.
There are a number of other opportunities and challenges to address. 2018 is the year to stay focused on fundamentals for success.
Jim Moore is president of Moore Diversified Services, Inc., a national senior housing and healthcare consulting firm based in Fort Worth, TX that has been serving clients for 46 years. He has authored five books about senior living and healthcare including Assisted Living Strategies for Changing Markets and Independent Living and CCRCs. Jim Moore can be reached at (817) 731-4266 or jimmoore@m-d-s.com.