- CPS
7 Unexpected Ways Senior Living Community Operators Are Reducing Costs
Maintaining financial efficiency while providing exceptional care is a priority in the senior living industry. While traditional cost-cutting often focuses on staffing or resident services, innovative solutions now target plant operations. Through the power of group purchasing, many community operators are able to save on essential services and equipment without compromising quality.
Below, we explore seven ways senior living operators implement operational cost reduction strategies to enhance operations.
Creative Strategies for Operational Cost Reduction
Group purchasing organizations (GPOs) offer senior living communities an opportunity to consolidate buying power. Through collective agreements, community operators secure better pricing, access reliable vendors, and streamline procurement processes. These savings translate directly into improved budgets and resources for resident care.
1. Reducing HVAC Maintenance Costs Through Preventative Maintenance Agreements
Heating, ventilation, and air conditioning (HVAC) systems are vital for residents' comfort and safety but can be costly. GPOs negotiate contracts with service providers, offering reduced rates for routine maintenance, repairs, and emergency services. These agreements lower expenses and improve service quality by ensuring timely upkeep. Additionally, collective purchasing often includes discounts on energy-efficient HVAC systems, reducing utility costs and long-term energy consumption.
2. Lowering Elevator Maintenance Expenses with Consolidated Contracts
Elevators are indispensable in senior living communities, but their maintenance costs can be steep. Senior living community operators can consolidate service agreements across multiple communities through group purchasing. This strategy can help reduce rates and allows access to skilled maintenance providers. Regular, affordable servicing also prevents costly breakdowns, ensuring uninterrupted service for residents.
3. Saving on Appliances with Collective Buying Power
Appliances like refrigerators, stoves, and dishwashers are essential for senior living communities, but come with significant upfront costs. Group purchasing enables operators to buy these appliances at discounted rates. Beyond the initial savings, GPOs often negotiate extended warranties or maintenance agreements, providing additional value. These partnerships allow communities to access premium appliances that meet safety and durability standards without exceeding their budgets.
4. Cutting Laundry Equipment Costs Through Group Negotiations
Laundry services are a daily necessity for residents and employees, and the associated equipment can represent a substantial investment. Group purchasing reduces the costs of acquiring commercial-grade washers and dryers and related products like laundry detergent. Community operators often benefit from added perks, such as bundled maintenance services or replacement guarantees. This ensures uninterrupted laundry operations and a longer lifespan for equipment, saving money and time while aligning with broader operational cost reduction goals. Many communities are also now outsourcing bulk laundry, such as linens, to third-party services, further reducing equipment-related costs and maintenance needs.
5. Streamlining Community Maintenance Supplies Procurement
Maintaining a well-functioning community requires a continuous supply of materials, from cleaning products to repair materials. Purchasing through a GPO allows community operators to secure discounts on essential chemicals, such as janitorial supplies. These discounts are based on the purchase of specific chemicals rather than individual uses to maximize cost efficiency. Standardized purchasing reduces expenses and ensures consistency in quality across all communities. Operators can also benefit from faster delivery times and simplified inventory management, reducing the administrative burden.
6. Accessing Energy-Efficient Solutions at Discounted Rates
Energy-efficient upgrades can be costly upfront but lead to long-term savings in operational costs. Group purchasing makes investments in technologies like LED lighting, programmable thermostats, and solar panels more accessible. By negotiating bulk rates and working with vendors who can help identify incentives and rebates, GPOs help community operators offset the initial expense of these upgrades. These solutions lower utility bills and contribute to sustainability goals, aligning with the values of modern residents and stakeholders.
7. Reducing Costs for Specialized Services Through Group Bargaining
Specialized services such as pest control, waste management, and landscaping are essential but can strain budgets. GPOs negotiate comprehensive service agreements that offer reduced rates and can lead to more reliable performance. These negotiations not only save money but also simplify vendor management. For example, contracts may include regular maintenance schedules, ensuring a proactive approach to these services rather than reactive, costly interventions.
Discover Additional Operational Cost Reduction Strategies with CPS
To explore how group purchasing can benefit your senior living community or communities, contact Care Purchasing Services (CPS). CPS, An LCS Company, specializes in procurement solutions tailored exclusively to the senior living industry. Reach out to learn more about how our expertise and vendor network can help you streamline operations, reduce costs, and focus on delivering exceptional resident care.