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Sustaining healthcare success comes with complex challenges, but you don’t have to face them alone. Wipfli’s healthcare advisory team is offering complimentary discovery sessions to help organizations tackle financial pressures, regulatory risks and data-driven decision-making with confidence.
Wipfli has decades of experience helping healthcare organizations like yours achieve financial success and higher-quality care.
By registering for a free discovery session, you can connect directly with our team to ask questions and receive personalized support for:
- Strengthening financial sustainability, including ways to optimize reimbursement, control costs and improve cash flow.
- Turning data into action and leveraging analytics to drive smarter, more informed decisions.
- Staying ahead of compliance risk by proactively managing regulatory changes and reducing exposure.
Insights for healthcare leaders
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AI in senior living: How organizations can use AI to scale smarter
AI is changing how businesses and organizations operate across sectors — and healthcare is no different. But while senior living leaders are curious about AI’s potential, many are unsure of how to convert that promise into meaningful results in areas like medication management, EHR analytics, personalized care and an all-around better experience for residents. However, the biggest roadblock here is often not technology, but mindset. Keep reading to learn more about how to solve that, plus more effectively implement AI within your senior living organization. What’s stopping senior living organizations from embracing AI? Faced with challenges like rising costs and Medicaid cuts that are already taking effect, many senior living organizations could benefit from finding efficiencies through AI. But this has proven easier said than done, in part because embracing AI demands a mindset shift. AI is a change management problem While integrating AI into your senior living organization does require implementing new tools and upskilling your team, it’s also largely an exercise in change management. Your team is used to operating one way, which can make building and sustaining the momentum you need to rebuild your systems or processes to take advantage of AI or automation tools feel a little bit like pushing a boulder up a hill. According to a survey of Wipfli clients, 91% of businesses or organizations report that non-technical obstacles are the biggest blockers to better leveraging new technologies like AI. Meanwhile, only 19% of executives actually feel comfortable leading an AI-transformation effort. In other words, because AI is still such a new and rapidly developing technology, organizations and leaders don’t feel comfortable with it. And that discomfort can make it harder to create results. Haphazard AI use can actually slow adoption and create chaos Is your senior living organization currently using AI? If your first instinct is to answer no, there’s a very good chance you’re wrong, because some of your individual team members are almost certainly using AI tools, regardless of whether they have buy-in from leadership. However, this risks creating a wild west scenario, where AI gets implemented piecemeal or haphazardly and without any overarching AI strategy. In this situation, you won’t have any governance standards, policies or processes to help ensure consistency, and can even risk HIPAA violations by exposing PHI to AI tools that don’t meet compliance requirements. Plus, such haphazard efforts will often flounder, blunting momentum for a more organized AI implementation plan. How should senior living organizations more effectively leverage AI? For senior living leaders looking to develop an effective, organization-wide approach to AI, the process matters. Specifically, you want to determine where you want to go, how you’re going to get there and what tools you’ll need to succeed. 1. Establish direction by identifying specific problems you want to solve A good AI strategy doesn’t mean buying your team a ChatGPT Pro subscription. Instead, identify specific problems within your organization where AI could make a difference. For example, if your organization is struggling to find skilled healthcare workers to fill key roles, consider whether AI could allow you to deploy your existing team more effectively by automating certain lower-level tasks so your staff can focus on more patient-centric work. Or can AI analyze data from your EHR to identify patient health trends you can use to improve care? Here, it can be good to lean on an advisory firm to help assess your current systems and processes and find gaps that AI could fill. You can also do this entirely in-house, so long as you keep the focus on looking for problems to solve. 2. Design your AI implementation strategy Once you’ve found problems that AI could help solve, you need to build a framework for implementation. This means designing an organization-wide AI strategy to help put new solutions into place. This includes laying out specific steps in the implementation process, identifying leaders or change champions to actually spearhead the rollout and establishing KPIs. It’s also essential to evaluate your existing data sources and prepare them for use by AI tools, a process that can include establishing a centralized data repository or warehouse. During this effort, you’ll need to consistently communicate with your whole team about why change is happening here and how they can help, as well as consider what training or upskilling opportunities you’ll need to provide. 3. Deliver by implementing specific tools that fit your strategy At this point, you can start implementing AI tools to solve the specific organizational problems you’ve chosen to target. However, this isn’t just a one-and-done event, but an ongoing process that involves both choosing the right tools and embracing the human, change management side of the equation. Your advisor can help you decide which AI solutions make sense for your needs, as the market has brought forth a dizzying array of options. Within your organization, communication remains essential, as you need to not just establish momentum, but maintain it. How can leaders prepare to oversee an organizational AI strategy? An effective AI strategy typically starts at the top, with commitment from leadership. So how should leaders prepare to oversee this effort with an eye towards more effective change management? Here are key leadership pillars to consider: Self-awareness: Before you ask your team to change by implementing AI, are you prepared to do the same? AI literacy: Your leadership team and organization need a shared understanding of what AI actually is and how you’ll be using it. Change leadership: Don’t just throw change at your team, but implement thoughtfully through planning, clear communication and celebrating wins or milestones. Effective use of resources: Throughout your AI implementation process, consider what work is being done, who will perform it, when it should happen and why it matters. Coaching and upskilling: Create training or coaching opportunities for your whole team to adapt to the changes within your organization. Read more Maximize new tax strategies for senior living providers 5 strategic planning imperatives for senior living organizations Embracing change in senior living: The path to innovation and growth
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How innovation in senior living can be a catalyst for growth and transformation
The senior living sector is at an inflection point, facing numerous challenges that require immediate attention and action. As the landscape evolves, so must the strategies employed by providers. The dissatisfaction with the status quo is palpable, and the need for modernization is more pressing than ever. Senior living providers must embrace change and invest proactively in innovation to thrive in an increasingly competitive environment. Why innovation is critical to senior living businesses The senior living industry is facing constant changes and challenges, including emerging competitors, changing customer demands, a volatile regulatory landscape and a difficult labor market. To remain competitive and meet evolving resident demands, your senior living business must be committed to innovation. Market disruption The senior living industry is undergoing significant transformation driven by various factors, including demographic shifts, evolving consumer expectations and regulatory changes. Providers that remain stagnant risk becoming obsolete as new entrants and innovative models disrupt traditional care paradigms. Demographic trends: The aging population is increasing, leading to a surge in demand for senior living services. Providers must adapt to meet the diverse needs of this growing demographic. Competitive landscape: New players are entering the market, often with fresh ideas and innovative service models that challenge the status quo. Consumer expectations are shifting Today’s seniors are more informed and discerning than previous generations. They expect high-quality services, personalized care and engaging environments. To remain relevant, providers must understand and respond to these evolving expectations. Modern residents seek tailored experiences that cater to their unique preferences and lifestyles. They want facilities that allow for freedom, with modern amenities and comforts. Nobody wants to get stuck in the stereotypical “old person’s home” — they’re looking for a bistro. Technology can play a critical role in modernizing the senior living experience for these discerning residents. With the rise of digital solutions, seniors now expect technology to enhance their living experience, from health monitoring to social engagement. Workforce challenges The senior living sector is grappling with a labor shortage that impacts service delivery. Providers must address workforce challenges by investing in employee training and development, as well as implementing strategies to attract and retain talent. Staffing shortages: High turnover rates and a lack of qualified candidates can hinder service quality. Training and development: Investing in workforce development can improve employee satisfaction and retention, ultimately benefiting residents. Regulatory and reimbursement pressures Navigating the complex regulatory environment is a significant challenge for senior living providers. Changes in policies, particularly around Medicaid and Medicare, can have profound implications for service delivery and financial viability. Organizations must stay abreast of evolving regulations to avoid penalties and ensure quality care and will also need to adapt to changing reimbursement structures to maintain financial stability. Financial vulnerability In an environment of rising costs and increasing competition, financial vulnerability is a pressing concern for many senior living organizations. Providers must adopt strategic financial planning to help ensure sustainability. Cost management: Identifying areas for operational efficiency can help mitigate financial pressures. Investment in innovation: Proactively investing in innovative solutions can drive long-term growth and profitability. Technology’s role in senior living Investing in innovative solutions can enhance operational efficiency, allowing providers to deliver higher-quality care while reducing costs. Implementing a tech stack that fits your operations can free staff to focus on resident care, improve decision-making and optimize operational performance. The right technology for the senior living industry Embracing technology is no longer optional; it is essential for success in the senior living sector. Providers must integrate advanced technologies to enhance service delivery and resident experiences. Artificial intelligence: AI can optimize staffing, improve care coordination and enhance resident engagement. Telehealth solutions: Offering telehealth services can improve access to healthcare for residents, particularly in rural areas. Enterprise resource planning (ERP): Modern ERP systems can facilitate interoperability with your accounting, billing, payroll and planning systems to help your team make informed, strategic decisions. Automation: Automated tools can play a pivotal role in enhancing service delivery within senior living communities. Automating administrative tasks can reduce the burden on staff and improve efficiency. Implementing automated communication tools can also enhance engagement between staff and residents. Data analytics: Leveraging data analytics can empower organizations to make informed decisions that enhance service delivery and operational performance. Data-driven decision-making can help your organization assess effectiveness and identify areas for improvement, as well as gather data on resident preferences and needs that can inform program development and service delivery. Workforce innovation strategies for senior living organizations To navigate the challenges of the modern senior living landscape, organizations must prioritize workforce development and leadership innovation. Some key areas to focus on include: Training programs: Investing in continuous training can equip staff with the skills needed to provide exceptional care. Leadership development: Fostering a culture of innovation and collaboration among leadership can drive organizational success. Middle market opportunities in senior living The middle market represents a significant opportunity for senior living providers. Many older adults do not qualify for subsidized housing but cannot afford luxury options. Technology can go a long way toward bringing down operating expenses, allowing providers to build for an underserved middle market in the senior living space, but more investment needs to be made to fill the gap. Tailored services for middle-income seniors Providers must develop tailored services that address the unique needs of middle-income seniors. Value-based care: Integrating value-based care models can help ensure that seniors receive the support they need while managing costs. Community engagement : Creating community-focused programs can enhance the living experience for middle-income residents. Public-private partnerships: Collaborating with government entities may be a cost-effective way to create affordable housing options without sacrificing quality. How senior living organizations can build a culture of innovation Most senior living organizations would probably say they are committed to innovation. But to actually embed a culture of innovation, your business needs to take the following actions: Embrace change management To successfully implement change, senior living providers must adopt effective change management strategies. Leadership buy-in: Securing buy-in from leadership is crucial for driving organizational change. Stakeholder engagement: Involving staff, residents and families in the change process can foster a sense of ownership and commitment. Develop a long-term vision A clear long-term vision can guide organizations in navigating the complexities of the senior living landscape. Strategic goals: Establishing measurable goals can help track progress and help ensure alignment with organizational objectives. Adaptability: Organizations must remain flexible and open to adjusting their strategies in response to changing market conditions. Fostering creativity and collaboration To thrive in a competitive landscape, senior living providers must cultivate a culture of innovation. Encouraging ideas: Creating an environment where staff feel empowered to share ideas can lead to creative solutions. Cross-department collaboration: Encouraging collaboration across departments can foster a holistic approach to service delivery. Incentive programs: Implementing programs that reward innovative ideas and solutions can encourage staff to think creatively. Celebrating successes: Highlighting successful initiatives can inspire others to pursue innovative approaches. The path forward for senior living providers The senior living sector must embrace change and proactively invest in innovation to navigate the challenges ahead. By understanding the risks of complacency, prioritizing operational efficiency and fostering a culture of innovation, providers can position themselves for success in an increasingly competitive landscape. The future of senior living depends on the willingness to adapt, innovate and prioritize the needs of residents. By implementing these strategies, senior living providers can not only enhance their service delivery but also create a sustainable business model that meets the needs of today’s seniors. The time for change is now, and those who embrace it will lead the way in shaping the future of senior living. Read more 6 strategic planning imperatives for senior living organizations Tax strategies for senior living providers: New ways to maximize savings 5 benefits of data and analytics for senior living facilities
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