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The shift towards value-based care in senior living is continuing in 2025, driven by rising resident acuity, tight margins and payer expectations.
As acuity drives changes in how operators manage their communities, senior living providers are more closely tracking health outcomes to show the benefit of the services they provide to keep people from moving “downstream” in the care continuum, such as into the emergency room.
In value-based care, the model shifts from fee-for-service to reaping reimbursement dollars to keep people healthier through plans like accountable care organizations (ACOs) or through private Medicare Advantage (MA) alternatives.
Through value-based care models, operators now have a unique opportunity to get paid for the time they care for residents, along with preventing hospitalizations, emergency department visits and extending quality of life, according to senior living operators active in value-based care efforts, including HumanGood and Lifespark.