5 Business Cost-Saving Opportunities For Multi-Location Senior Living Providers

 

It’s one of the biggest challenges for senior living providers: maintaining an exceptional level of resident care and comfort while managing rising costs. The good news is that senior living providers with multiple locations, which make up about 56% of operators, have unique opportunities for uncovering efficiencies in day-to-day operations. 

In this article, we’ll explore five business cost-saving opportunities for multi-location providers. From evaluating staffing and scheduling data to streamlining supply chain management, small adjustments can lead to significant savings. We’ll also explore the benefits of implementing a preventative maintenance strategy and discuss how exploring automated solutions can help optimize operations. 

 

1. Evaluate Staffing and Scheduling Data

If there’s one truism in the senior living industry, it’s that hiring, training, and managing employees is among your biggest challenges. The best way to start optimizing your staffing needs is to establish a strong workforce management system that gives you the data you need to track staffing over time. This eliminates “best guesses” and provides hard data you can share with leadership and stakeholders when requesting adjusted staffing budgets.  

Cross-training your employees across various roles — and scheduling them to work across locations within reasonable commuting distance — also gives you more flexibility. For instance, dining waitstaff can be cross-trained in administrative tasks. Administrative employees can also be trained in sales and marketing assistance. This allows for more potential coverage if an employee is out or staffing levels are low.

 

 

 

2. Streamline Supply Chain Management

Senior living providers with multiple locations can benefit from business cost savings by buying in bulk or bundling purchasing with a  group purchasing provider. By consolidating your suppliers and negotiating better rates, you can reduce costs and administrative work, too (this is also a great way to simplify inventory management). 

Here’s an example from Healthpeak, a senior living provider with 13 senior living communities, nine of which are in the state of Florida. Theypartnered with Care Purchasing Services (CPS) to look for more efficient ways to procure back-up generators, among other needs. These generators are required in the state of Florida to ensure a continuation of services in the event of a hurricane or other natural disaster. CPS had over 250 vendor relationships, allowing them to connect Healthpeak with COI Energy, a full-service digital energy management platform. The service not only provided generators, but was able to do so in a way that saved the communities a significant amount of money. 

In fact, this solution worked so well that the community was able to partner with local city governments to loan out their generators as needed. When the city uses them, they credit the communities’ electric bill, resulting in even more cost savings!

 

3. Invest in Preventative (and Predictive) Maintenance

Regular maintenance checks help prevent costly repairs and keep your equipment and operations running smoothly. Scheduling routine inspections for roofs, gutters, siding, and critical healthcare equipment can save you from unexpected expenses and extend the life of your investments.

However, there’s an additional opportunity for business cost savings by investing in predictive maintenance. Predictive maintenance uses data to anticipate potential equipment or structural issues before they become major problems. Maintenance management software can help you keep track of when pieces of health or fitness equipment are most likely to require repairs and replacement. You can also use it to record tasks and schedules, making it easier to predict potential areas to address. By addressing these issues early, you can avoid expensive emergency repairs.

 

 

4. Explore Automated Solutions

 

Automating routine tasks such as billing, reporting, and scheduling can ease your employees’ workload, allowing them to spend more time building meaningful relationships with residents. These tools not only streamline operations but also reduce administrative costs, helping your community run more smoothly. 

These tools go beyond administration tasks, too. Many senior living communities use integrated resident management systems to help coordinate and track resident care, needs, health updates, and document management. Having a central location where this information can be shared among employees who serve residents can reduce errors, improve communication, and ultimately enhance the quality of care that residents receive. 

 

 

5. Renegotiate Contracts with a Group Purchasing Service

 

Take a close look at your service contracts for purchases you make related to technology, cleaning, landscaping, dining, and security. Regular reviews and renegotiations can help you find better rates and services. 

For instance, when Healthpeak partnered with Care Purchasing Services for their group purchasing needs, they received a dedicated account manager who met with them to discuss team member supervision, financial management, quality assurance, strategic planning, facility management, policy implementation, and crisis management. These calls often uncovered opportunities for the communities to save money. 

One instance of this was when Healthpeak’s CPS account manager had one of Healthpeak’s vendors transfer a contract over to CPS at reduced cost. It was an easy and efficient way to save!

 

Smarter Group Purchasing with CPS

Uncover new business cost-saving opportunities with the power of group purchasing. Since 1999, Care Purchasing Services, An LCS Company, has helped senior living communities contain purchasing costs of consumer goods, business products and services, medical equipment, clinical programs, and more. Contact us to get connected with an expert team dedicated to your success.