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Rising operating expenses are now the top-cited challenge for long-term care providers, according to the latest Executive Survey Insights report, released Thursday by the National Investment Center for Seniors Housing & Care. 

The Wave 44 survey includes responses from July 25 to Aug. 21 from owners and executives of 55 small, medium and large senior living and skilled nursing operators from across the country.

Eighty-six percent of respondents said that rising operating expenses are their biggest current challenge. This percentage is an increase from the Wave 41 survey conducted in May. At that time, 80% of respondents cited rising operating expenses as their biggest challenge.

Employee turnover remains a major concern for 80% of the survey’s respondents. NIC noted, however, that staffing no longer is the top-cited challenge. Almost three-fourths of respondents expressed optimism that workforce “improvements are on the horizon,” according to the report.

“A promising sign of relief to the long-standing labor market challenges may be that 14% expect staffing challenges to improve in the second half of this year,” NIC Senior Principal Ryan Brooks wrote. “Approximately one-half believe labor markets will ease in the first half of 2023, 16% believe staffing challenges will improve in the second half of 2023, and one in four anticipate it will take until 2024 or beyond before staffing challenges ease.”

Ninety-six percent of Wave 44 respondents said that they are backfilling staff shortages by paying overtime hours. Seventy-four percent said they are using agency or temporary staff. Although 55% of respondents using agency or temporary staff do not expect that to change doing so this year, 37% of respondents using agency or temporary staff said that they do anticipate their reliance on outside staffing to decrease before the end of the year. 

Many of the Wave 44 respondents operate a combination of senior living and care property types. Seventy-six percent of the organizations operate independent living, assisted living and/or memory care properties, 33% operate skilled nursing facilities and 27% operate continuing care retirement / life plan communities.