Background & Resources
Early in 2021, Health Dimensions Group (HDG) was contracted to manage a transition for a real estate management organization. The client was planning to convert unsuccessful senior living properties to multi-family residential apartments. HDG was brought in to assist with the due diligence, as well as to manage day-to-day operations of the community during the four-month transition.
Due to the COVID-19 pandemic, the community had experienced many struggles. It had not maintained equipment, and unit turnovers had not been transitioned appropriately. This was in addition to roofing problems, HVAC trouble, landscaping issues, and a lack of resident engagement.
Roadblocks
The HDG team encountered several roadblocks as work progressed, including:
- Pricing—A market study of the area was completed by HDG to determine the new apartment prices and structure, as well as a formal transition budget. With these prices in-hand, HDG was ready to communicate to the residents. The HDG team met individually with each resident at the location to help them make the best decision for them as to what services they would require after the transition to multi-family housing was effective. HDG also assisted in lining up food and housekeeping services to allow many of the residents to continue to stay in their homes.
- Maintenance—HDG assisted in implementing a plan to address ongoing maintenance issues, including: HVAC units in disrepair, sagging flooring due to improper carpet installation, roofing issues causing rain to leak into upperlevel apartments, a malfunctioning elevator, a failing security fence, and a lack of proper equipment to fix or maintain property.
- Security—Due to location of the property and an abandoned building next door, security at all hours of the day was a concern. A local security company was hired to assist with the project, and the intervention of routine patrolling by the local sheriff and police helped curb this issue.
- Licensing—HDG led the securement of the business license, although it was not a customary transition; HDG had to navigate licensure delays due to the lack of property maintenance and the numerous inspections needed, slow response at the city and county level due to reduced COVID-19 staffing, and the need to locate past paperwork.
Solution
HDG utilized a parallel approach that encompassed both the day-to-day shortterm management of the community while simultaneously working in partnership with client designees to ensure a smooth and seamless transition for departing residents, incoming new tenants, and the overall migration of the community from independent living to multi-family residential services. Comprehensive management oversight services included consistent on-site leadership, regular on-site consultation, and a full off-site support team to manage day-to-day functions during the resident transition period.
HDG’s Immediate Action Plan included the following steps:
- Secure staff to ensure minimal disruption to residents through consistent communication and stay bonus compensation plan.
- Assist with the execution of a formal communication plan for staff and residents, as well as formal public relations media plans.
- Hire ED for day-to-day on-site needs.
- Conduct town hall meetings each week to keep residents and staff updated.
- Create a month-to-month time-bound plan to guide the overall transition of residents.
- Hold one-on-ones with residents to evaluate care level needs.
- Ensure continuation of services to residents.
- Transition staff employment and benefits to HDG’s staffing company.
Develop pro forma and interim transition budget. - Assess immediate maintenance concerns
The Ongoing Action Plan executed by HDG featured the following:
- Offer remaining staff monthly bonus, as well as end bonus, as incentive to stay.
- Reduce workforce at end of each month as census declined.
Transition residents to new homes in assisted living and memory care as needed. - Maintain dietary needs for those residents attending dining room meals and receiving inapartment deliveries.
- Maintain COVID-secure environment.
- Establish room readiness planning guide to determine unit readiness for new incoming tenants.
Results
- Resident care and communication was the top priority at all times, ensuring residents received necessary services during and after the transition, in the most effective way possible. With the outside services HDG was able to help them obtain, several residents were able to stay in their homes.
- Dedicated staff members continued through the last day services were offered; staff were appreciative, and some were able to continue working for the property management company due to their performance during the transition period.
- Vendor management was satisfactory during the transition and, in some cases, resulted in continuance of services for the new property management company.
- Consistent and ongoing communication with the client was executed throughout the transition, including regular updates on transition progress. Client enjoyed a smooth conclusion to their service needs with a two-day period of support for final layoffs, and assistance with hiring of new staffing.
- Overall transition resulted in a successful financial performance, coming in under budget.
Securement of a similar project with the client in another location is currently ongoing.
About Health Dimensions Group
Minneapolis-based Health Dimensions Group (HDG) is a leading management and consulting firm, providing services to post-acute, longterm care, and senior living providers, as well as hospitals and health systems across the nation. HDG has been serving health care organizations for more than 20 years with a firm commitment to its values of hospitality, stewardship, integrity, respect, and humor.
