Recent changes in the health care marketplace are causing many Minnesota long-term care providers to become more aware of the markets in which they operate and to re-evaluate their marketing strategies. Demographic shifts, sociological phenomena, medical advances, new government influences and competition are impacting the manner in which care is provided to the elderly and subsequently creating changes in consumer expectations and demands for long-term care services. As with any industry in a period of transition, changes will create new business opportunities for those who understand and capitalize on changing market conditions.
Market Forces Affecting The Long-Term Care Industry
As stated above, the market forces affecting the long-term care industry include demographic shifts, sociological phenomena, medical advances, governmental influences and competition. The extent to which a long-term care provider effectively anticipates and responds to these market challenges will ultimately have a direct impact on bottom line profitability. Although the degree of influence these factors have may differ according to a facility's location in a rural or metropolitan area, each factor must be evaluated to develop marketing strategies.
Demographics - According to the National Planning Data Corporation, more than 515,700 persons 65 and older are estimated to reside within Minnesota in 1987. This is projected to increase to a level of 531,700 by 1992. The largest growth is shown in those elderly above the age of 75, the population segment which comprises the majority of nursing' home demand. Further analysis of Minnesota elderly demographics reflects a shift in the number of elderly households with annual incomes of more than $25,...
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...tor analysis can identify market opportunities, particularly when combined with an overall demographic analysis.
Planning For The Future
The nature of the long-term care industry is changing rapidly. Alternative programs that reach out into the community and into individual homes are becoming an attractive approach to meet the growing demands of the marketplace. The strategic marketing response of an organization to these environmental forces should mesh the needs of the marketplace with its business mission, goals and capabilities.
A marketing plan that clearly identifies tactical responses to these forces should be developed and communicated throughout the organization. The responses should increase the community involvement of the nursing home and work to attract these portions of the growing elderly population within the facility's market area.
The purpose of this report is to summarize the findings of an interview with Rusty Metcalfe, Chief Information Officer of Fundamental Administrative Services, LLC, and analyze the competitive and strategic positioning of the firm within the long-term, post-acute senior care industry. I interviewed Mr. Metcalfe on Wednesday November 15, 2016 and covered a broad array of topics including the department’s history and structure, risks and opportunities, strategic alignment and near and long-term goals.
Generally, in a LTC setting there is a director, assistant director, physician, pharmacist, nurses, medication aides, certified nursing assistants, case managers, social workers, and clergy. These individuals are tasked with providing a daily health plan for long-term care residents 24 hours a day, seven days a week. This group could consist of less or more healthcare associates which is conditional and determined by the goal plan; moreover, the intended outcome not solely geared towards physical rehabilitation. In modern society, rehabilitation is targeted to restore mind, body and soul thereby promoting the overall health of the patient, or
In conclusion there needs to be an increase in government funding for long term care facilities to convey maximum ability to provide quality of care to elders and equal accessibility too homes and care. Ways that can produce this outcome are increases in staff funding for training and recruitment, as well as for equipment to help increase care. Government funding should also help elders decrease the cost of living in nursing homes and allow equal accessibility to homes and care in homes.
A nursing home is another form of care and this involves an elderly person moving from their home to a building full of all amentities necessary for living well. The only downside to nursing homes is that they are the most exepnsive alternative and that there is a large waiting list for getting into one. In 2010, the Ontario Health Quality council reported, “wait times for a long-term care bed in Ontario have tripled since 2005” (Born, 2011). A nursing home has become a last resort because of these reasons and we need to do everything in our power to alleviate the amount of demand for these nursing homes.
Nelda McCall (2001). Long Term Care: Definition, Demand, Cost, and Financing. Chicago: Health Administration Press, pg. 19.
It is a well-known fact most Americans seniors would prefer to age in their own homes instead of moving into senior living communities. Meeting seniors where they are is a trend that will most likely affect assisted living facilites in the future. One of the main focuses from providers is being patient centerd. Meaning working with the patient to ensure that the best possible care is given. Providers are working with patients and offereing more services within their homes. Another trend that we will see in assisted living facilites is a competive pressure. According to the National Investment Center for Senior Housing and Care, competition housing is an increasing trend that is affecting living situtions for the elderly
The long-term care system consists of an integrated continuum of many institutional and non-institutional providers who deliver extended care when needed. Long-term care providers deliver a variety of care to individuals with chronic, mobility and/or cognitive impairments/limitations. These providers include: nursing facilities, sub acute care, assisted living, residential care, elderly housing options and community based adult services (Pratt, 2010). A great majority of these providers are already taking care of the many baby boomers that are present today and will be present in the future. “Baby boomers” are individuals who were born between the years 1946-1964. Since 2011, every day 10,000 baby boomers turn 65 years old (Pratt, 2010). This
African American senior citizens face a health care crisis too. They have worked all of their lives to secure retirement, but their retirement has been threatened because of the rising cost of long-term medical care. Insurance companies have failed to provide affordable long-term care, protection that most senior citizens need. This lack of long term care and affordability has been a serious problem for the health care system. In some cities, the shortage of hospital beds is so serious that it is common for patients to stay in emergency rooms before they can be admitted to an inpatient room (Drake 109). More than one thousand hospital beds are occupied by people who could be better care for in nursing homes or through home health care (Drake 110). Of the disabled elderly 1.3 million reside in nursing homes (Drake 10). These patients are unable to perform two or more of the basic activities of daily living without assistance.
The health care industry is positioned for the global market place. It is expected to grow exponentially in health-related services for the elderly. China’s population of individuals over sixty years old is expected to grow to one third in the next twenty-five years. Though their culture view aging somewhat differently than in United States, they are interested in the attractive senior living options established here. Senior care encompasses private care facilities, home health care, products, drugs and medical equipment. As the largest health care market in the world American companies have made significant global inroads over the last two decades. These businesses are positioned to offer additional services directed at retirees, and children who will be responsible for their parents and potentially their grandparents as well.
By the year 2020, there is expected to be over 54 million senior citizens age 65 years or older. Despite medical technology and advanced medications, seniors older than age 65 have four times the number of hospitalizations days as compared to younger age groups (Curtain, 2007). Health care demands are increasing due to the aging United States population, and the present-day Medicare system is not capable of funding this. Health insurance emphasis is now on efficiency, profits, customer satisfaction, ability to pay, and competition (Curtin, 2007). Social and political aspects are major influencers of our health care. The shift of focus from patient care to a business model has caused hospitals to maintain a tight budget, often affecting nursing staff ratios. Lean staffing ratios is associated with an increase in malpractice suits due to adverse events (Curtin, 2007).
As the government’s role in public health continues major changes have been put into effect specifically dealing with long-term care. Before the 1930’s providing care for the elder was solely a local and state effort. However, after the great depression a growing demand was placed on providing some type of insurance for the elderly. The Social Security Act of 1935 was established to assist with “Federal old-age benefits” and was signed into effect by President Roosevelt on August 15, 1935. (Home) Another major contribution to long-term care has been the creation of Medicaid. This went into effect in 1965 and was an amendment...
As the population of the United States ages and lifespan increases, the U.S. is being faced with challenges that could either hurt the country or benefit it if plans are executed correctly. By the year 2050, more than thirty-two million Americans will be over the age eighty and the share of the 80-plus generation will have doubled to 7.4 percent. Health care and aging population has become a great deal considering the impact it is having on the U.S. The United States is heading into another century with an outstanding percentage of people within the aging population. Today’s challenges involving health care and the aging populations are the employees of health professions being a major percentage of the aging population, the drive into debt, and prevention and postponement of disease and disability.
In this unit, we will be discussing real-life healthcare organizations, the 5 P’s of healthcare marketing, and evaluation strategies that may be used to determine marketing potential.
Taking care of the individuals that are getting older takes many different needs. Most of these needs cannot be given from the help of a family. This causes the need of having to put your love one into a home and causing for the worry of how they will be treated. It is important for the family and also the soon to be client to feel at home in their new environment. This has been an issue with the care being provided for each individual, which has lead to the need of making sure individuals have their own health care plan.
Today, world’s population is aging at a very fast pace and United States is no exception to this demographic change. According to the U.S Census Bureau, senior citizens will be accounted for 21% of the American population in 2050 (Older Americans, 2012). Although living longer lives may not seem like a negative sign, living longer does not necessarily mean living healthier. Older adults of today are in need of long-term and health care services more than any generation before them (Older Americans, 2012). Because of the growing need for senior care, millions of families are facing critical decisions on how to provide care for their parents. In addition, declining birthrates may cause people to have less familial care and support as they age. To be able to provide the necessary care for senior citizens government funded long term care insurance program is needed.