Industry Insights & Trends

Key Players in the Senior Care Services Market and Trends

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Four key players in the senior care services market include Brookdale Senior Living, Addus HomeCare, Home Instead Senior Care, and Sunrise Senior Living.

Brookdale Senior Living

  • Brookdale Senior Living is a leading provider of long-term care facilities. The company operates several types of senior living communities in the US, including “independent living, assisted living and dementia-care communities, and continuing care retirement centers (CCRCs).”
  • Brookdale Senior Living operates under five segments of business, including “retirement centers, assisted living, CCRCs-rental, Brookdale ancillary services (BAS), and management services (MS).”
  • Its retirement centers segment caters to middle and upper-income seniors, while the assisted living segment focuses on assisting “mid-acuity, frail, and elderly residents.”
  • Brookdale Senior Living CCRCs-rental category accommodates health and physical ability. The BAS segment features hospice, outpatient therapy, and home health services. It also provides education & wellness programs, while the MS segment constitutes the communities in which it operates.

Target Audience

How They Reach Them

  • To better reach this audience, Brookdale Senior Living contracted Nebo to “create an integrated campaign that would optimize their digital efforts across channels, reach their key audiences and educate them on the benefits of senior living.”
  • Their efforts include restructuring their paid media campaigns to align with influencers’ and seniors’ decision-making processes and setting up geo-targeting-based strategies to reach their target audience better. Brookdale also implemented new digital tools and designed new content.

Unique Propositions

  • Brookdale Senior Living sees its home health as a huge competitive differentiator. It leverages home health under its Brookdale Ancillary Services segment to make the company a one-stop-shop for senior care.
  • According to Brookdale Senior Living CEO Andy Smith, home health is “a value proposition that can’t be replicated.”
  • Brookdale Senior Living also offers better pricing, superior products, and service.

Addus HomeCare

  • Addus HomeCare operates under the personal care, hospice, and home health segments to provide in-home personal care services.
  • The company assists with “bathing, grooming, oral care, skin care, assistance with feeding and dressing, medication reminders, meal planning and preparation, housekeeping and transportation services and other activities of daily living.”
  • The personal care segment provides non-medical assistance to the elderly, critically ill, disabled, and those generally at risk of hospitalization. The hospice segment caters to terminally ill people and their families by providing them with emotional, spiritual, and physical care.
  • Addus HomeCare provides medical care to post-surgery patients or those suffering from an illness in the home health segment.

Target Audience

  • Addus HomeCare typically targets people who, “without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled.”

How They Reach Them

  • Addus HomeCare receives most of its customers through third-party referral relationships and programs. It regularly meets with contracted managed care organizations present in their consumer market to build relationships that ensure the continuity of such referrals.
  • These third-party referrals usually come from “state departments on aging, rehabilitation, mental health and children’s services, county departments of social services, the Veterans Health Administration, and city departments on aging.” These organizations usually inform family members of potential consumers about the company’s services through a state/local case management system.
  • Also, Addus HomeCare leverages educational and outreach programs in their target communities to inform them about the availability of care options and the company’s role in providing personal care services.
  • The company also uses sales, marketing, and advertising programs directed at consumers. These programs are specifically designed to attract their target audience.

Unique Propositions

  • Addus HomeCare leverages acquisitions to expand its services into new markets and regions.
  • It is the only publicly-traded personal care services company almost exclusively devoted to that sector.
  • Addus HomeCare uses organic growth strategies that ensure 3-5% annual revenue growth. They include high-quality, coordinated care, driving growth in existing markets, marketing to managed care organizations (MCOs), and strategic expansion in new markets.

Home Instead Senior Care

  • Home Instead Senior Care provides in-home senior care services such as “home helper, personal, respite care, and short term recovery services,” through a globally franchised network.
  • Instead of using assisted living facilities or nursing homes, this company facilitates non-medical home care assistance for physically capable seniors who require only light/minimal assistance, companionship, and/or supervision.
  • Home Instead Senior Care employees are called CAREGivers. They “provide the elderly with one-on-one assistance in the home and at assisted living or nursing care facilities. “
  • Their services range from hospice support and personal care to Alzheimer’s disease and dementia care.

Target Audience

  • Home Instead Senior Care targets seniors (adults over 65 years), their family members, and caregivers.

How They Reach Them

  • Home Instead Senior Care launched a creative platform called Home Stories to reach older adults and encourage their preference to live at home.
  • The campaign was featured on TV, social media, radio, and print media to spread awareness about their services.

Unique Propositions

  • Home Instead Senior Care launched the Home Instead Senior Care Foundation, a crowd-fundraising platform devoted to promoting awareness and funds for seniors-related programs.
  • The company partnered with the University of Nebraska Medical Center (UNMC) to provide education for caregivers and offer seniors preventive care.
  • Home Instead Senior Care strives to develop an emotional connection with seniors and their families. It trains and encourages its employees to do so.
  • The company uses a “Net-Promoter based customer feedback platform” to determine customers most likely to provide referrals, which it leverages to drive the business.

Sunrise Senior Living

  • Sunrise Senior Living is a leading provider of senior living services. It operates under five care segments, including assisted living, nursing care, dementia care, respite care, and independent living.
  • Sunrise Senior Living provides care services in 330 communities with 32,500 units across the US, UK, and Canada.
  • The company boasts a high level of personalized offerings and customer service. However, the notion that “the best senior living has yet to be invented” guides the company’s operations. As such, Sunrise Senior Living is always seeking to improve its services.

Target Audience

How They Reach Them

  • The Sunrise Senior Living Marketing team leverages online marketing to reach an extensive database of caregivers and seniors online.
  • The company contracted Brafton to develop its “social media, blog content, and online sharing” for the same. Using real-time data on trending topics, Sunrise Senior Living creates relevant content on its website to attract potential consumers.

Unique Propositions

  • Technology plays a vital role in Sunrise Senior Living’s competitive advantage strategy. The company’s data-driven sales training provides a deep understanding of target customers before they visit.
  • Sunrise Senior Living’s “CEM tool analyzes current market trends and offers, competitive insights, and suggestions for overall sales and brand initiatives.”
  • Lastly, it maintains high acquisition rates by managing potential customers’ expectations using actionable and consistent data.

Home Instead Senior Care SWOT Analysis

Strengths

  • Home Instead Senior Care ensures quality care using specialized programs.
  • The development of the Home Instead Senior Care Foundation is a unique proposition that sets the company apart from its competitors.
  • The company’s advertising is featured nationwide via several media channels, allowing it to reach a large audience.
  • Home Instead Senior Care has over 20 years of experience in the senior care services industry.

Weaknesses

  • Due to the personal relationship that the company develops with its customers, it might be unable to charge more expensive rates.
  • It is difficult for Home Instead Senior Care to hire compassionate staff off the bat. The company would have to use its resources to train employees to exhibit the level of compassion that it requires.
  • There are many competitors in the senior care services space, all fighting for the same market, including new entrants. As such, there is not much room for growth.

Opportunities

  • The senior population is rapidly increasing. Those aged 85 years and older are the fastest-growing population segment in the US. This trend is also present in several other countries, who are reporting an aging population due to increased life expectancy and lower birth rates.
  • This data represents an increasing market and an opportunity for Home Instead Senior Care to expand to new regions.
  • There is an increasing market for managed care.
  • The readmission reduction rule from the Centers for Medicare & Medicaid Services (CMS) allows for improved outcomes in patient care and secures full CMS payments.

Threats

Brookdale Senior Living SWOT Analysis

Strengths

  • Brookdale Senior Living has developed a strong distribution network over the years, which allows it to reach the majority of its potential customer markets.
  • The company has a successful value proposition/go-to-market strategy for its products and services.
  • Availability of cash flow to enable proper and immediate handling of projects, including expansion into new projects.
  • It has a reliable supply chain due to the successful integration of technology companies through mergers and acquisitions (M&As).
  • Ease of scalability due to the automation of its activities thus leads to consistency in the quality of its services.

Weaknesses

  • The current asset and liquid asset ratios of Brookdale Senior Living suggest that the company is not managing cash as efficiently as it should, indicating that there is a lack of efficient or proper financial planning.
  • The company experienced market share reductions in niche categories due to its inability to handle the challenges brought on by new entrants properly.
  • While the company’s research and development (R&D) budget is beyond the industry average, its innovation does not compare with other industry leaders.
  • Brookdale Senior Living has existing gaps in its range of products, which could be exploited by competitors.
  • The company has a poor track record when it comes to integrating companies that have different work cultures.
  • The company has a high attrition rate compared to other industry leaders. As such, it would have to use more resources to train and develop its employees.

Opportunities

  • Brookdale Senior Living has an opportunity to break into a new market that has emerged due to “the adoption of new technology standards and the government free trade agreement.”
  • Brookdale Senior Living’s recent investment into digital services and the online platform has established a new sales channel. Using big data analytics, the company would obtain a deeper understanding of its customers and develop initiatives to serve their needs better.
  • Market development due to technological advancements levels the playing field for Brookdale Senior Living and allows it to increase its competitiveness.
  • New and emerging market trends are an avenue for the company to venture into new product categories in senior care and generate new revenue streams.

Threats

  • The increasing cost of raw materials could affect the profitability of Brookdale Senior Living.
  • The growing consumer interest in online methods could pose a threat to existing physical infrastructure.
  • Currency fluctuations due to the company’s presence in several countries are a threat to its profitability, especially as there is a volatile political climate in many markets presently.

Innovative Trends in Senior Care Services

1. Artificial Intelligence (AI) in Caregiving

  • Health professionals are increasingly using artificial intelligence (AI) at every stage of the care pathway.
  • When used in conjunction with other innovations such as “voice-first, NLP, robotics, and ubiquitous sensors,” AI/machine learning (ML) transforms the mediums of sharing, finding, and curating information for caregivers.
  • Advances in AI will change the way caregivers relate with family members and with themselves. However, AI provides more significant benefits such as ” increased independence and safety for older adults through improved efficiency in care management and care coordination, leading to improved caregiving outcomes.”
  • The world’s population of people aged 60 years and above is expected to increase from 12% to 22% from 2000 to 2050. The population of those aged 80 years and older will quadruple within that period.
  • People aged 65 years and above constitute 14.5% of the US population, and this number is expected to increase to 20% by 2030.
  • This fast-growing aging population and the shrinking supply of caregivers is driving the demand for technological solutions that will bridge the gap due to workforce shortage.
  • Some applications of AI in caregiving include in-home health monitoring, digital companionship, and virtual nurse assistants.
  • Careangel is an example of companies that are “optimizing voice-based virtual assistants as nurses and caregivers for target patient populations.”

2. Cybersecurity

  • The rapid increments in technological advancements have led to security gaps in senior care and the healthcare industry.
  • “People in senior living, including assisted living and long-term care, are potential portals to vast and valuable databases and, in some cases, direct links to identities and big money.”
  • Assisted living and skilled nursing rehab centers are among the most vulnerable healthcare sectors due to lower levels of IT sophistication and information security.
  • About 94% of people over 50 years use internet-enabled technology to connect with their friends and family.
  • Virtual-reality devices are popular among people aged 50 years and over (44%).
  • About 97% of aging adults use the internet at least once weekly, and 67% of seniors in the US have been victims of an online scam/hack.
  • Sunrise Senior Living uses “a mix of email spam filters, sophisticated firewalls, endpoint solution systems, and mobile device management systems” to handle IoT technology security.
GLENN TREVOR
Glenn is the Lead Operations Research Analyst at Simple Manifestation with experience in research, statistical data analysis and interview techniques. A holder of degree in Economics. A true specialist in quantitative and qualitative research.

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