Skilled Nursing Facilities (SNF)

The AI infrastructure juggernaut is on – consumers hesitate and deployment is cautious.   Parallel tracks are emerging. Investment by the big players in infrastructure (see Nvidia) is overwrought.  Even Oracle is jumping in with billions – as well as redirecting the company to be all-in on AI.  Today, 78% of companies say they are using AI in at least one business function. Meanwhile, back over in the real people corner, surveyed consumers continue to be surveyed and are cautious and concerned. Why the disconnect?  Mostly gloomy news coverage about AI.

We are selling a product that people don’t want to buy. This Senior Housing News article, The New Skilled Nursing: Assisted Living Operators Adapt to Changing Place in the Care Continuum does not hide a trend that is significantly changing their business but also the future for older adults. So they delay their move until it becomes urgent – Mom cannot live at home any longer. Translate – Mom is too frail, her dementia is worse, her mobility has declined, etc. She will need multiple types of support.  Recent statistics about assisted living demographics are harsh: Consumer Affairs asserts that 70% of residents have some level of dementia, with the majority of residents women in their 80’s.

HLTH 2024 wrapped up last week in Las Vegas – where else?  AI was a big topic – transformational, embedded in health tech, capitalizing on the buzz. Or growing caution, concern about regulation, data quality issues, depending on the perspective. Others fretted about the state of healthcare in the US (not good), physician burnout (not good) and the health status of Americans, especially the mental health of young people (not good).  All these despite the promise of AI-enablement of laborious processes, hospital at home, conversational AI, new drugs, and many tech innovations. Looking through the exhibitor list, fifty-eight companies self-identified as AgeTech at HLTH.

Concerns about AI are all around, but its future role is inevitable.  There it is, one consumer well-publicized survey after another, whether it is the WSJ,  Pew Research or AARP,  even as adoption in business, healthcare and other industries grows.  Consumers continue to express worry – but in the meantime…82% of companies are either using or exploring use of AI today. That parallels the senior living and care organizations interviewed for this new report – there is a combination of evaluating, limited use, and actually in use with benefit. Interviewees contributed ideas, actual projects and concerns, helping to shape the new report, The Future of AI in Senior Living and Care.

No surprise – AI tools are already part of senior living operations and planning. The research phase is nearly complete for the report on AI in Senior Living and Care.  It is increasingly apparent that AI is not a future for many. it is already solving vexing problems that proprietary or existing apps could not effectively tackle, whether in senior living or skilled nursing home environments. Although a few interviewees felt that AI tools were 'not quite ready for prime time' all saw that the future benefit, particularly in terms of more effective use of data, optimizing workloads of staff, and proactive monitoring of the wellbeing of residents. The report will quote specific executives about their experiences, but here are insights from the 20 conversations held to date:

You can read about AI -- it's discussed everywhere.  Searches reveal the many AI possibilities and current uses in healthcare. In fact, a Google search reveals multiple paid webinars you can attend today to learn more. Consultants are seizing the opportunity. You can read about AI’s trust issues in Harvard Business Review. (My favorite issue: ‘unknown unknowns.’) And check out healthcare investment in 2024. Follow the money – it might be in claims processing.  And as for care management, did we mention the opportunity for AI-powered digital experiences?  Some care will be delivered and supported with AI in the resident’s home, especially healthcare.

Publicly available up-to-date stats about the older adult population is weak or non-existent.  The most recent version of ChatGPT admits it cannot state the current population in the US that is aged 75+.  Nor can Google. This is somewhat surprising, given the angst in business and market predictions about the aging of the US population and the potential doom that it portends. But anyway, the answer is buried in Census tables. Would you be surprised to learn that there are 25.7 million people aged 75+ today?  That 14.8 million are women and 10.8 million are men?  Would it surprise that 42% of the 65+ population (60.5 million) is aged 75+?