In the Quarter 1 Financial and Operational Update, Gary Anderson, LSS President, and Paul Ogier, LSS Chief Financial Officer, shared an update on the new LSS Assisted Living Pricing Model. Now that the model is in place, Rita Vicary, LSS Vice President of Marketing, Communications, and Sales, provides an in-depth look at why LSS has implemented this new model and how changes will impact residents and staff.
Why is LSS changing our Assisted Living pricing model?
Rita:
Assisted Living as an industry has seen many changes since LSS began providing Assisted Living services in 1995. Originally designed as a social model, Assisted Living residents and their family members are now looking to receive increased social benefits and medical care within this level of living and to stay in Assisted Living longer.
Until now, LSS has charged “all inclusive,” flat rates, while most Assisted Living providers use pricing structures based on residents’ need for care. For LSS to be able to serve residents with higher needs in Assisted Living, we have adopted a new pricing model based on individual care needs.
How does the Assisted Living pricing model work?
Rita:
Under the new pricing structure, residents who require more care and assistance will qualify for one of two Expanded Care Service Plans. The revenue provided by the fees associated with the Expanded Care Service Plans will help provide the appropriate number of staff to care for the residents.
Residents who don’t require more care and assistance will continue to be billed at the Monthly Service Fee rate. Residents who qualify for the Expanded Care Service Plan A will pay an additional $400 per month, while those who qualify for Expanded Care Service Plan B will pay an additional $800 per month. This structure means that only those residents who need more care and assistance will pay for them.
How is it determined which service plan a resident needs?
Rita:
An evaluation tool, called the Individualized Needs Assessment (INA), is completed by a Wellness Nurse, with input from our residents’ direct care givers. The evaluation measures the amount of assistance needed to perform various self-care tasks, sometimes referred to as activities of daily living, or ADLs.
The INA indicates the amount of care each resident truly needs. Re-assessments are completed every six months, or upon a significant change in condition. The INA helps the Assisted Living care team develop the Individualized Service Plan for each resident.
What does the additional money from the increase in cost of the service plans go toward?
Rita:
This new pricing model will allow for consistent staffing, which provides the potential for residents to stay in Assisted Living longer, and ultimately benefits all residents. By using the assessment we’ll be better able to predict the staff hours that we will need for each assisted living community.
How was the model designed?
Rita:
The decision to adopt the new pricing model came after a great deal of data analysis and scientific research on the individualized needs of our residents, how those needs affect staffing, and how those staffing needs affect pricing. Of course, at the heart of our decision is how we can provide the absolute best care and services to our residents.
When does this model go into effect?
Rita:
We began implementing this model June 1 with new residents who move into our Assisted Living community being billed according to the new pricing model.
The Director of Health Services at each community will use the INA to evaluate current residents in late September 2019. They will inform residents in early October 2019 if their care needs mean they will continue to pay the Monthly Service Charge, or whether they qualify for one of the Expanded Care Service Plans. The new pricing model will become effective January 1, 2020, for current Assisted Living residents.